Please prepare a full trial balance – Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, Balance Sheet, and Statement of Owner's Equity, as well the individual Balance Sheet, Income Statement, and Statement of Owners Equity. Include any journal entries necessary for this assignment. Use T accounts if you find them helpful. Attached are the files for your use. Check your formulas.
Please prepare a full trial balance – Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, Balance Sheet, and Statement of Owner's Equity, as well the individual Balance Sheet, Income Statement, and Statement of Owners Equity. Include any journal entries necessary for this assignment. Use T accounts if you find them helpful. Attached are the files for your use. Check your formulas.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please prepare a full
Transcribed Image Text:1
2
4
5
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Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
7
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
8
9
10
11
12 Cash
13 Accounts Receivable
14 Supplies
15 Prepaid Insurance
16 Office Equipment
17 Accum Deprec
18 Accounts Payable
19 C. Mason, Capital
20 C. Mason, Drawing
21 Revenue
22 Depreciation
23 Office Expense
24 Rent Expense
25 Insurance
26 Repairs
27 Wages
28 Supplies
29 Travel Expense
30 Utilities Expense
31 Miscellaneous Expense
32
33
34
35
36
37
38
39
40
41
42
Worksheet
Bal Sheet
Inc Stmt
Stmt OE
Genl Journal
Transcribed Image Text:Please prepare a full trial balance – Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, Balance Sheet, and Statement
of Owner's Equity, as well the individual Balance Sheet, Income Statement, and Statement of Owners Equity. Include any journal entries
necessary for this assignment. Use T accounts if you find them helpful.
Attached are the files for your use. Check your formulas.
1. You are reporting for your client for the One Month period September 30, 2020
2. The started the month with Cash of $22,305; Equipment (5 year property) of $40,000; Accum Deprec $4,000; Accounts Payable S4,335, Capital $53,970.
3. During September they had the following transactions:
a. Sold to customers on account $55,375
b. Customers paid $12,000 on their accounts
C. Company purchased 1 year of Supplies for $12,200
d. Company has no Accts Payable at month end.
e. Company paid the annual insurance premium of $12,000
f. The owner C Mason had $5,500 of draw
g. The company incurred and paid the following expenses – Rent $3500, Repairs $105, Wages $3,000, Travel expenses $4200, Utilities $150,
Miscellaneous Expenses $750.
h. The last week of payroll was unpaid at September 30. Accrue payroll and the related expenses of the company. The information is as follows:
Employees
Employee
Hourly Rate
Hours Worked
Fed Inc Tax Withheld
Mary
22.50
46
250
Jim
15.00
42
175
Hank
35.00
40
1205
Joe
12.00
62
100
Cindy
15.00
45
125
Expert Solution
Step 1
Calculation of Unadjusted Trail Balance for the given information of one month period September 1, 2020 as follows:
| Date | Account Tittle | Dr. ($) | Cr. ($) |
| Cash | 22,305 | ||
| Equipment (5 year property) | 40,000 | ||
| Accumulated Depreciation | 4,000 | ||
| Accounts payables | 4,335 | ||
| Capital | 53,970 | ||
| Total | 62,305 | 62,305 |
Adjusting Journal Entries:
| Date | Account Tittle | Dr. ($) | Cr. ($) |
| a) | Accounts Receivables Dr. | 55,375 | |
| Sales Cr. | 55,375 | ||
| b) | Cash A/c Dr. | 12,000 | |
| Accounts Rec. Cr. | 12,000 | ||
| c) | Prepaid Supplies A/c Dr. | 12,200 | |
| Cash Cr. | 12,200 | ||
| d) | Acc. Payable Dr. | 4,335 | |
| Cash Cr. | 4,335 | ||
| e) | Prepaid Insurance Dr. | 12,000 | |
| Cash Cr. | 12,000 | ||
| 30 Sep, 2020 | Insurance Expenses Dr. | 1,000 | |
| Prepaid Insurance Cr. | 1,000 | ||
| f) | C Mason Capital Dr. | 5,500 | |
| Drawings Cr. | 5,500 | ||
| Drawings Dr. | 5,500 | ||
| Cash Cr. | 5,500 | ||
| g) | Rent Expenses Dr. | 3,500 | |
| Repairs Dr. | 105 | ||
| Wages Dr. | 3,000 | ||
| Travel Expense Dr. | 4,200 | ||
| Utilities Dr. | 150 | ||
| Miscellaneous Expense dr. | 750 | ||
| Cash Cr. | 11,705 | ||
| h) | payroll Expenses Dr. | 4,484 | |
| FICA tax payable- social security@6.2% Cr. | 278 | ||
| FICA tax Payable - Medicare Tax@1.45% Cr. | 65 | ||
| Federal Income tax withheld (given) Cr. | 1,855 | ||
| Wages and Salaries Payable Cr. | 2,286 | ||
| Payroll taxes expenses Dr. | 343 | ||
| FICA tax payable- social security@6.2% | 278 | ||
| FICA tax Payable - Medicare Tax@1.45% | 65 |
Adjusted Trail Balance as on 30 Sep, 2020 as follows:
| Date | Account Tittle | Dr. ($) | Cr. ($) |
| Cash ($22,305+$12,000-$12,200-$4,335-$12,000-$11,705-$5,500) | 11,435 | ||
| Accounts Receivable ($55,375 - $12,000) | $43,375 | ||
| Prepaid supplies A/c | 12,200 | ||
| Prepaid Insurance ($12,000 -$11000) | 11,000 | ||
| Equipment (5 year property) | 40,000 | ||
| Accumulated Depreciation | 4,000 | ||
| Taxes payable ($278+$65+$1,855+$278+$65) | 2,541 | ||
| Salaries Payable | 2,286 | ||
| C Mason, Capital | 53,970 | ||
| C Mason, Drawings | 5,500 | ||
| Sales | 55,375 | ||
| Rent Expenses | 3,500 | ||
| Repairs Expense | 105 | ||
| Wages Expense | 3,000 | ||
| Travel Expense | 4,200 | ||
| Insurance Expense | 1,000 | ||
| Utilities Expense | 150 | ||
| Miscellaneous Expense | 750 | ||
| Payroll tax expenses | 343 | ||
| Payroll expenses | 4484 | ||
| Total | 129,607 | 129,607 |
Income Statement for the month of September 30, 2020
| Particulars | ($) | ($) |
| Sales | 55,375 | |
| Expenses : | ||
| Rent Expenses | 3,500 | |
| Repairs Expense | 105 | |
| Wages Expense | 3,000 | |
| Travel Expense | 4,200 | |
| Utilities Expense | 150 | |
| Insurance expenses | 1,000 | |
| Miscellaneous Expense | 750 | |
| Payroll tax expenses | 343 | |
| Payroll expenses | 4484 | 17,532 |
| Net Income | 37,843 |
Balance Sheet as on Sep 30, 2020
| Cash ($22,305+$12,000-$12,200-$4,335-$12,000-$11,705-$5,500) | (11,435) | |
| Accounts Receivable ($55,375 - $12,000) | $43,375 | |
| Prepaid supplies A/c | 12,200 | |
| Prepaid Insurance ($12,000 - $11,000) | 11,000 | |
| Total Current Assets | 55,140 | 55,140 |
| Non Current Assets | ||
| Office Equipment | 40,000 | |
| Less: accumulated Deprecation | (4,000) | 36,000 |
| Total Assets | 91,140 | |
| Current liabilities | ||
| Taxes payable ($278+$65+$1,855+$278+$65) | 2,541 | |
| Salaries Payable | 2,286 | |
| Total current liabilities | 4,827 | 4,827 |
| Equity and Liabilities | ||
| C Manson, Capital | 53,970 | |
| Less: Drawings | (5,500) | |
| Add : net Income | 37,843 | 86,313 |
| Total Equity and liabilities | 91,140 |
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