Réquired: 1. Based on the trial-balance and the information provided below, prepare adjusting entries and post them to the general ledger. (15%) a. The estimated useful life of the buildings is 40 years with insignificant residual value. The firm implements the straight-line depreciation method. b. The depreciation rate for equipment is 15% per year. The salvage value of the equipment is zero and the firm uses the straight-line depreciation method. C. During the year expired an insurance policy of €1,750. d. The amount of "Revenues from renting hotel facilities" present the amount received for 10 months for renting sporting facilities of the hotel to a local sporting club. The rents for November and December have not yet been received. e. It is estimated that 10% of the accounts receivable will not be collected. f. The expenses for salaries and wages for months November and December amount to €1,800. This amount will be paid during the fiscal period of 2021. g. The firm has received in advance from customers the amount of €4,450. The amount refers to accommodation services that will be provided to customers during the summer of 2021. The amount received was recorded as a revenue of the closing year. 2. Prepare adjusted trial balance. (2%) 3. Prepare closing entries and post them to the ledger. (3%) Additional information

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hello. this is my question that i have to answer. i have already started but i cannot upload the excel file (only 2 files are permitted). could you please kindly provide the answer and especially advise about the firm's tax 20% how it affects the question 2 and 3, please?

Thank you in advance.

Required:
1. Based on the trial-balance and the information provided below, prepare adjusting
entries and post them to the general ledger. (15%)
a. The estimated useful life of the buildings is 40 years with insignificant residual
value. The firm implements the straight-line depreciation method.
b. The depreciation rate for equipment is 15% per year. The salvage value of the
equipment is zero and the firm uses the straight-line depreciation method.
c. During the year expired an insurance policy of €1,750.
d. The amount of "Revenues from renting hotel facilities" present the amount
received for 10 months for renting sporting facilities of the hotel to a local
sporting club. The rents for November and December have not yet been
received.
e. It is estimated that 10% of the accounts receivable will not be collected.
f. The expenses for salaries and wages for months November and December
amount to €1,800. This amount will be paid during the fiscal period of 2021.
g. The firm has received in advance from customers the amount of €4,450. The
amount refers to accommodation services that will be provided to customers
during the summer of 2021. The amount received was recorded as a revenue of
the closing year.
2. Prepare adjusted trial balance. (2%)
3. Prepare closing entries and post them to the ledger. (3%)
Additional information
a. Assume that the amounts presented in the trial balance are already posted in
the general ledger accounts.
b. Firm's tax rate is 20%.
c. The fiscal year of “ABC Hotels" commences on January 1 and ends on December
31 of each year.

Subject 2 (25%)
A. "ABC Hotels" operates in the tourism industry. Assume that the trial-balance of "ABC
hotels", as of December 31,2020 is:
ABC Hotels
Trial Balance
December 31, 2020
Debit
€7,500
Credit
Cash .
Accounts Receivable...
Allowance for Doubtful Accounts..
6,500
€550
Prepaid Insurance.
Land . .
Buildings
Accumulated Depreciation-Buildings..
Equipment ..
Accumulated Depreciation–Equipment..
Share Capital... .
Retained Earnings..
4,500
175,000
60,000
19,200
75,000
35,000
200,000
41,000
Revenues from accommodation...
100,000
2,950
Revenues from renting hotel facilities..
Revenues from restaurants ...
8,800
Utilities Expense ...
27,000
40,000
.....
Salaries and Wages Expense.
Maintenance and Repairs Expense...
Totals .
12,000
€407,500
€407,500

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