Prepare Classified Balance Sheet as at 31 December 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please help me
Transcribed Image Text:Enjoy Limited is an education center that provides education services to students in Hong Kong.
The financial year ends on 31 December. The trial balance on 1 January 2021 are as follows:
Cash
Office supplies
Prepaid insurance
Equipment
Accounts receivable
Note payable
Accounts payable
Unearned revenues
Common stock
Additional paid-in capital
Retained earnings
Total
b)
c)
d)
e)
f)
g)
b)
During the year 2021, Enjoy Limited has the following transactions/events:
i).
j)
k)
1)
nj
0)
p)
s)
Debit
S
4)
1,000,000
$5,000
$10,000
$40,000
$80,000
1,135,000
4)
r)
Credit
S
m) Received $120,000 cash for education services. $90,000 of the amount received were
for the services provided in 2021. Owning to $30,000 cash, the remaining amount
received, students will be entitled to the education services in 2022.
$10,000 education services were provided for cash received in 2020.
Paid $10,000 cash in 2020 for insurance coverage in 2021 and 2022. $3,000 of the
amount paid were for the coverage of year 2021. $7,000 of the amount paid were for the
coverage of year 2022.
$300 office supplies were remaining at the end of 2021.
$6,000
$20,000
$40,000
$70,000
Issued 50,000 shares of common stock for cash at a market value of $15 per share. Par
value is $0.10 per share.
Purchased $6,000 office supplies on credit.
Provided $800,000 education services to students on account.
Paid $3,000 cash for utility fees for the operations of Enjoy Limited.
Provided $600,000 education services to students for cash.
Paid $3,000 cash for office supplies purchased in b)
Paid $40,000 cash for purchasing equipment.
Received $600,000 cash for education services provided in c)
Paid $50,000 cash for rent, of which $30,000 were for the operations in 2021 and the
remainder was for the operations in year 2022.
$800,000
$199,000
1.135.000
Jeff, one of the employees of Enjoy Limited, purchased a car worth $50,000 for the
operation of the company. Enjoy Limited signed a note of $50,000 with Jeff. The due
date is on 1 May 2023 (ignore interest).
Prepare Classified Balance Sheet as at 31 December 2021.
Lent $4,000 cash to Mary, one of the employees of Enjoy Limited, by signing a note.
The due date is on 3 March 2022.
Kenneth, one of parents living by Enjoy Limited, agrees to purchase $40,000 education
services.
$30,000 wages for teachers were due. Cash had not been paid to the teachers.
The accountant found that $10,000 of $30,000 in m) should be for the education
services provided in 2021 rather than 2022.
Declared $6,000 dividend at the end of year 2021.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education