Presented below is the adjusted trial balance of Elvie CPA for the year ended December 31,2020 Elvie, CPA Adjusted Trial Balance Dec-19 Debit Credit Cash in Bank 78,000 Accounts Receivable Estimated Uncollectible Account Office Supplies Office Equipment Accumulated Depreciation Accounts Pay able Elvie, Capital Elvie, Drawings Professional Income Uncollectible Account 35,000 480 12,500 45,000 4,500 13,000 47,500 15,000 180,000 480 Depreciation Expense Utilities Expense Supplies Used Salaries Expense Rent Expense 4,500 25,000 5,000 15,000 10,000 TOTAL 245,480 245,480 Requirements: 1. Prepare Closing entries 2. Post-Closing Trial Balance Statement of Financial Position 3. 4. Income Statement 5. Statement of Changes in Owner's Equity
Presented below is the adjusted trial balance of Elvie CPA for the year ended December 31,2020 Elvie, CPA Adjusted Trial Balance Dec-19 Debit Credit Cash in Bank 78,000 Accounts Receivable Estimated Uncollectible Account Office Supplies Office Equipment Accumulated Depreciation Accounts Pay able Elvie, Capital Elvie, Drawings Professional Income Uncollectible Account 35,000 480 12,500 45,000 4,500 13,000 47,500 15,000 180,000 480 Depreciation Expense Utilities Expense Supplies Used Salaries Expense Rent Expense 4,500 25,000 5,000 15,000 10,000 TOTAL 245,480 245,480 Requirements: 1. Prepare Closing entries 2. Post-Closing Trial Balance Statement of Financial Position 3. 4. Income Statement 5. Statement of Changes in Owner's Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Presented below is the adjusted trial balance of Elvie CPA for the year ended December 31,2020
Elvie, CPA
Adjusted Trial Balance
Dec-19
Debit
Credit
Cash in Bank
P.
78,000
everse some of
Accounts Receivable
35,000
counting
consistency.
Estimated Uncollectible Account.
Office Supplies
Office Equipment
Accumulated Depreciation
Accounts Payable
Elvie, Capital
Elvie, Drawings
Professional Income
480
12,500
45,000
y switches
4,500
13,000
47,500
n adjusting
15,000
180,000
Uncollectible Account
480
Depreciation Expense
Utilities Expense
Supplies Used
Salaries Expense
Rent Expense
4,500
25,000
5,000
month
15,000
10,000
TOTAL
P.
245,480
245,480
Requirements:
1. Prepare Closing entries
2. Post-Closing Trial Balance
3. Statement of Financial Position
4. Income Statement
5. Statement of Changes in Owner's Equity
Transcribed Image Text:The Statement of Comprehensive Income Section of R. Expanol Travel & Tours worksheet for the month
ended January 31, 2020 is presented below:
R. Espanol Travel & Tours
Worksheet
Income Statement
Dec-19
Debit
Credit
Service Income
120,000
Uncollectible Account Expense
2,500
Taxes and Licenses
8,000
Office Rent
10,000
Salaries Expense
25,000
Insurance Expense
3,000
Depreciation Expense
5,000
TOTAL
53,500
120,000
Profit
66,500
TOTAL
120,000
120,000
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