Performed tax service for a client and received cash 9 for the full amount of 8, 000.00 12 Paid utility expenses, 2.000.00 Performed consulting services for a client on account. 18 17,000.00 Received 9,000.00 in advance tax work to be performed 21 evenly over the next 30 days. Hired a secretary to be paid 15, 000.00 on the 20th day of each month. 21 Collected 6, 000.00 from the consulting client on 28 December 18. 30 Withdrew 16, 000.00 for personal use. Required: 1. Journalize the transactions. 2. Post to the T-accounts (General Ledger), keying all items by transactions. 3. Prepare an unadjusted trial balance on December 31. Set up columns for the adjustments for the adjusted trial balance. 4. Prepare the adjusting entries for December 31 from the following information: a. Accrued service revenue, 4.000.00 b. Earned a portion of service collected in advance on December 21. c. Supplies on hand, 1, 000.00 d. Depreciation expense for Office Equipment; depreciation expense for Furniture and fixtures. e. Accrued expense for secretary salary. 5. Prepare the Adjusted Trial Balance, Income Statement, and Statement of Financial Position.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROBLEM 1
Emily Cruz, completed the transactions below for the month of December,
2021. The company uses the following charts of accounts:
Cash
Accounts Receivable
Office Supplies
Office Equipment
Furniture & Fixtures
Accumulated Depreciation -
office Equipment
Accumulated Depreciation -
Furniture & Fixtures
Accounts Payable
Salary Payable
Unearned Revenue
Transactions:
December
2
2
4
Emily Cruz, Capital
Emily Cruz, Withdrawals
Fee Revenue
Rent Expense
5
Utilities Expense
Salary Expense
Depreciation expense
Equipment
Depreciation Expense
& Fixtures
Supplies Expense
Office
Furniture
Paid cash for an Apple computer, 30,000.00. The
3 computer is expected to remain in service for 5 years.
Invested 120, 000.00 to start an accounting practice,
Emily Cruz, Accountant.
Paid monthly office rent, 5, 000.00.
Purchased office furniture on account, 36,000.00. The
furniture should last for five years.
Purchased supplies on account, 3,000.00
Transcribed Image Text:PROBLEM 1 Emily Cruz, completed the transactions below for the month of December, 2021. The company uses the following charts of accounts: Cash Accounts Receivable Office Supplies Office Equipment Furniture & Fixtures Accumulated Depreciation - office Equipment Accumulated Depreciation - Furniture & Fixtures Accounts Payable Salary Payable Unearned Revenue Transactions: December 2 2 4 Emily Cruz, Capital Emily Cruz, Withdrawals Fee Revenue Rent Expense 5 Utilities Expense Salary Expense Depreciation expense Equipment Depreciation Expense & Fixtures Supplies Expense Office Furniture Paid cash for an Apple computer, 30,000.00. The 3 computer is expected to remain in service for 5 years. Invested 120, 000.00 to start an accounting practice, Emily Cruz, Accountant. Paid monthly office rent, 5, 000.00. Purchased office furniture on account, 36,000.00. The furniture should last for five years. Purchased supplies on account, 3,000.00
Performed tax service for a client and received cash
for the full amount of 8, 000.00
9
12 Paid utility expenses, 2.000.00
Performed consulting services for a client on account.
18 17,000.00
Received 9,000.00 in advance tax work to be performed
21 evenly over the next 30 days.
Hired a secretary to be paid 15, 000.00 on the 20th
day of each month.
21
Collected 6, 000.00 from the consulting client on
December 18.
28
30 Withdrew 16, 000.00 for personal use.
Required:
1. Journalize the transactions.
2. Post to the T-accounts (General Ledger), keying all items by
transactions.
3. Prepare an unadjusted trial balance on December 31. Set up
columns for the adjustments for the adjusted trial balance.
4. Prepare the adjusting entries for December 31 from the following
information:
a. Accrued service revenue, 4,000.00
b. Earned a portion of service collected in advance on December
21.
c. Supplies on hand, 1, 000.00
d. Depreciation expense for Office Equipment; depreciation
expense for Furniture and fixtures..
e. Accrued expense for secretary salary..
5. Prepare the Adjusted Trial Balance, Income Statement, and
Statement of Financial Position.
Transcribed Image Text:Performed tax service for a client and received cash for the full amount of 8, 000.00 9 12 Paid utility expenses, 2.000.00 Performed consulting services for a client on account. 18 17,000.00 Received 9,000.00 in advance tax work to be performed 21 evenly over the next 30 days. Hired a secretary to be paid 15, 000.00 on the 20th day of each month. 21 Collected 6, 000.00 from the consulting client on December 18. 28 30 Withdrew 16, 000.00 for personal use. Required: 1. Journalize the transactions. 2. Post to the T-accounts (General Ledger), keying all items by transactions. 3. Prepare an unadjusted trial balance on December 31. Set up columns for the adjustments for the adjusted trial balance. 4. Prepare the adjusting entries for December 31 from the following information: a. Accrued service revenue, 4,000.00 b. Earned a portion of service collected in advance on December 21. c. Supplies on hand, 1, 000.00 d. Depreciation expense for Office Equipment; depreciation expense for Furniture and fixtures.. e. Accrued expense for secretary salary.. 5. Prepare the Adjusted Trial Balance, Income Statement, and Statement of Financial Position.
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