The following information are available: 1. Cate did not bill yet the client for legal services rendered on December 28. On December 29, they won the case and billed the client on January 8, 2022 amounting to 74,780 2. Cate received 52,000 for the services that are yet to be performed on January 2022 to May 2022. 60% will allocate to legal and remaining to accounting. Cate did not record this transaction to her books. 3. A cafeteria is behind on space rental revenue, and this 10,000 of accrued revenues was unrecorded at the time the trial balance was prepared. 4. 34,840 of Unearned Rent account balance was still unearned at year-end 5. Computers and Equipment was bought on January 1, 2019 with 3,600 salvage value and estimated useful life of 6 years. Cate did not record yet any adjustments for 2021. 6. Building are being depreciated starting 2017 with 25,000 salvage value and estimated useful life of 40 years. Cate did not record yet any adjustments for 2021. 7. Actual drawing shows 12,500 instead of 15,200 8. Prepaid life insurance was paid in full last July 1, 2021. The life insurance are for 15 months period. 9. Prepaid building insurance was paid in full last September 1, 2021. The building insurance are for 3 years period. 10. The one employee, a secretary, works a five-day workweek at 1,000 per day. The employee was paid last week but has worked Wednesday through Friday this week for which she has not been paid. 11. Cate has four assistants who each earn 800 per day for a five-day workweek that ends on Friday. The employees were paid last Friday and worked full days on Monday to Friday this week for which they have not been paid 12. Loan payable at 12% every year was borrowed last April 1, 2021. The loan will be repaid after 5 years 13. Supplies on hand values at 33,190 14. Actual utility bill will receive on January 10, 2022 amounting to 18,770 15. 1,890 to be accrued as interest on bank statement base on bank's prevailing interest. The interest is not yet shown in the current bank statement due to system error. It's expected that this will appear on January 2022. Required: 1. Prepare the adjusting journal entries 2. Prepare a worksheet to show the unadjusted trial balance, adjustments and adjusted trial balance
The following information are available: 1. Cate did not bill yet the client for legal services rendered on December 28. On December 29, they won the case and billed the client on January 8, 2022 amounting to 74,780 2. Cate received 52,000 for the services that are yet to be performed on January 2022 to May 2022. 60% will allocate to legal and remaining to accounting. Cate did not record this transaction to her books. 3. A cafeteria is behind on space rental revenue, and this 10,000 of accrued revenues was unrecorded at the time the trial balance was prepared. 4. 34,840 of Unearned Rent account balance was still unearned at year-end 5. Computers and Equipment was bought on January 1, 2019 with 3,600 salvage value and estimated useful life of 6 years. Cate did not record yet any adjustments for 2021. 6. Building are being depreciated starting 2017 with 25,000 salvage value and estimated useful life of 40 years. Cate did not record yet any adjustments for 2021. 7. Actual drawing shows 12,500 instead of 15,200 8. Prepaid life insurance was paid in full last July 1, 2021. The life insurance are for 15 months period. 9. Prepaid building insurance was paid in full last September 1, 2021. The building insurance are for 3 years period. 10. The one employee, a secretary, works a five-day workweek at 1,000 per day. The employee was paid last week but has worked Wednesday through Friday this week for which she has not been paid. 11. Cate has four assistants who each earn 800 per day for a five-day workweek that ends on Friday. The employees were paid last Friday and worked full days on Monday to Friday this week for which they have not been paid 12. Loan payable at 12% every year was borrowed last April 1, 2021. The loan will be repaid after 5 years 13. Supplies on hand values at 33,190 14. Actual utility bill will receive on January 10, 2022 amounting to 18,770 15. 1,890 to be accrued as interest on bank statement base on bank's prevailing interest. The interest is not yet shown in the current bank statement due to system error. It's expected that this will appear on January 2022. Required: 1. Prepare the adjusting journal entries 2. Prepare a worksheet to show the unadjusted trial balance, adjustments and adjusted trial balance
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.3E
Related questions
Question
![The following information are available:
1. Cate did not bill yet the client for legal services rendered on December 28. On December 29,
they won the case and billed the client on January 8, 2022 amounting to 74,780
2. Cate received 52,000 for the services that are yet to be performed on January 2022 to May
2022. 60% will allocate to legal and remaining to accounting. Cate did not record this transaction
to her books.
3. A cafeteria is behind on space rental revenue, and this 10,000 of accrued revenues was
unrecorded at the time the trial balance was prepared.
4. 34,840 of Unearned Rent account balance was still unearned at year-end
5. Computers and Equipment was bought on January 1, 2019 with 3,600 salvage value and
estimated useful life of 6 years. Cate did not record yet any adjustments for 2021.
6. Building are being depreciated starting 2017 with 25,000 salvage value and estimated useful life
of 40 years. Cate did not record yet any adjustments for 2021.
7. Actual drawing shows 12,500 instead of 15,200
8. Prepaid life insurance was paid in full last July 1, 2021. The life insurance are for 15 months
period.
9. Prepaid building insurance was paid in full last September 1, 2021. The building insurance are
for 3 years period.
10. The one employee, a secretary, works a five-day workweek at 1,000 per day. The employee was
paid last week but has worked Wednesday through Friday this week for which she has not been
paid.
11. Cate has four assistants who each earn 800 per day for a five-day workweek that ends on Friday.
The employees were paid last Friday and worked full days on Monday to Friday this week for
which they have not been paid
12. Loan payable at 12% every year was borrowed last April 1, 2021. The loan will be repaid after 5
years
13. Supplies on hand values at 33,190
14. Actual utility bill will receive on January 10, 2022 amounting to 18,770
15. 1,890 to be accrued as interest on bank statement base on bank's prevailing interest. The
interest is not yet shown in the current bank statement due to system error. It's expected that
this will appear on January 2022.
Required:
1. Prepare the adjusting journal entries
2. Prepare a worksheet to show the unadjusted trial balance, adjustments and adjusted trial
balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a66d62e-b7e8-43fd-a1be-fea3162545d0%2F0f58e4c9-4e48-49e2-95f1-fbe4e1ace910%2Fotzon8o_processed.png&w=3840&q=75)
Transcribed Image Text:The following information are available:
1. Cate did not bill yet the client for legal services rendered on December 28. On December 29,
they won the case and billed the client on January 8, 2022 amounting to 74,780
2. Cate received 52,000 for the services that are yet to be performed on January 2022 to May
2022. 60% will allocate to legal and remaining to accounting. Cate did not record this transaction
to her books.
3. A cafeteria is behind on space rental revenue, and this 10,000 of accrued revenues was
unrecorded at the time the trial balance was prepared.
4. 34,840 of Unearned Rent account balance was still unearned at year-end
5. Computers and Equipment was bought on January 1, 2019 with 3,600 salvage value and
estimated useful life of 6 years. Cate did not record yet any adjustments for 2021.
6. Building are being depreciated starting 2017 with 25,000 salvage value and estimated useful life
of 40 years. Cate did not record yet any adjustments for 2021.
7. Actual drawing shows 12,500 instead of 15,200
8. Prepaid life insurance was paid in full last July 1, 2021. The life insurance are for 15 months
period.
9. Prepaid building insurance was paid in full last September 1, 2021. The building insurance are
for 3 years period.
10. The one employee, a secretary, works a five-day workweek at 1,000 per day. The employee was
paid last week but has worked Wednesday through Friday this week for which she has not been
paid.
11. Cate has four assistants who each earn 800 per day for a five-day workweek that ends on Friday.
The employees were paid last Friday and worked full days on Monday to Friday this week for
which they have not been paid
12. Loan payable at 12% every year was borrowed last April 1, 2021. The loan will be repaid after 5
years
13. Supplies on hand values at 33,190
14. Actual utility bill will receive on January 10, 2022 amounting to 18,770
15. 1,890 to be accrued as interest on bank statement base on bank's prevailing interest. The
interest is not yet shown in the current bank statement due to system error. It's expected that
this will appear on January 2022.
Required:
1. Prepare the adjusting journal entries
2. Prepare a worksheet to show the unadjusted trial balance, adjustments and adjusted trial
balance
![Please refer to the following data and prepare the requirements.
Atty. Cate, CPA Legal and Accounting Services
Atty. Cate, CPA Legal and Accounting Services
Unadjusted Trial Balance
Chart of Accounts
December 31, 2021
December 31, 2021
Account
Reference
Account
Reference
Debit
Credit
Cash
100
Cash
121,220.00
Cash in bank
101
Cash in bank
188,200.00
Accounts Receivable
102
Accounts Receivable
67,560.00
Prepaid Life Insurance
52,500.00
Interest Receivable
103
Prepaid Building Insurance
Computers and equipment
84,600.00
Supplies
Prepaid Life Insurance
Prepaid Building Insurance
Computers and equipments
Accumulated Depreciation - Computers and equipments
Building
Accumulated Depreciation - Building
104
102,900.00
105
33,100.00
Accumulated Depreciation - Computers and equipment
Building
106
150
525,000.00
151
Accumulated Depreciation - Building
50,000.00
152
153
Land
1,260,000.00
Land
154
Accounts Payable
Wages Payable
Utility Payable
Interest Payable
Unearned Professional Service Revenue - Legal
Unearned Professional Service Revenue - Accounting
200
Accounts Payable
225,600.00
201
Unearned Rent Revenue
128,400.00
202
203
Long term Notes Payable
580,000.00
204
1,000,000.00
Cate, Capital
Cate, Drawing
205
15,200.00
Unearned Rent Revenue
206
Long term Notes Payable
Cate, Capital
Cate, Drawing
Professional Service Revenue - Legal
Professional Service Revenue - Accounting
250
Professional Service Revenue - Legal
234,420.00
300
301
Professional Service Revenue - Accounting
154,080.00
400
Rental Revenue
150,000.00
401
Wages Expense
Supplies Expense
64,800.00
Rental Revenue
402
73,620.00
Interest Revenue
403
2,555,600.00 2,555,600.00
Wages Expense
Supplies Expense
Utility Expense
Interest Expense
500
ТОTAL
501
502
503
Depreciation Expense - Computers and Equipment
Depreciation Expense - Building
Life Insurace Expense
Building Insurance Expense
504
505
506
507](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a66d62e-b7e8-43fd-a1be-fea3162545d0%2F0f58e4c9-4e48-49e2-95f1-fbe4e1ace910%2Fd33f4pd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Please refer to the following data and prepare the requirements.
Atty. Cate, CPA Legal and Accounting Services
Atty. Cate, CPA Legal and Accounting Services
Unadjusted Trial Balance
Chart of Accounts
December 31, 2021
December 31, 2021
Account
Reference
Account
Reference
Debit
Credit
Cash
100
Cash
121,220.00
Cash in bank
101
Cash in bank
188,200.00
Accounts Receivable
102
Accounts Receivable
67,560.00
Prepaid Life Insurance
52,500.00
Interest Receivable
103
Prepaid Building Insurance
Computers and equipment
84,600.00
Supplies
Prepaid Life Insurance
Prepaid Building Insurance
Computers and equipments
Accumulated Depreciation - Computers and equipments
Building
Accumulated Depreciation - Building
104
102,900.00
105
33,100.00
Accumulated Depreciation - Computers and equipment
Building
106
150
525,000.00
151
Accumulated Depreciation - Building
50,000.00
152
153
Land
1,260,000.00
Land
154
Accounts Payable
Wages Payable
Utility Payable
Interest Payable
Unearned Professional Service Revenue - Legal
Unearned Professional Service Revenue - Accounting
200
Accounts Payable
225,600.00
201
Unearned Rent Revenue
128,400.00
202
203
Long term Notes Payable
580,000.00
204
1,000,000.00
Cate, Capital
Cate, Drawing
205
15,200.00
Unearned Rent Revenue
206
Long term Notes Payable
Cate, Capital
Cate, Drawing
Professional Service Revenue - Legal
Professional Service Revenue - Accounting
250
Professional Service Revenue - Legal
234,420.00
300
301
Professional Service Revenue - Accounting
154,080.00
400
Rental Revenue
150,000.00
401
Wages Expense
Supplies Expense
64,800.00
Rental Revenue
402
73,620.00
Interest Revenue
403
2,555,600.00 2,555,600.00
Wages Expense
Supplies Expense
Utility Expense
Interest Expense
500
ТОTAL
501
502
503
Depreciation Expense - Computers and Equipment
Depreciation Expense - Building
Life Insurace Expense
Building Insurance Expense
504
505
506
507
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