Trulia Advice Inc. is a multinational financial consultancy services company that specialises in financialconsultancy services and consulting to big corporates to handle financial crisis. Following are thetransactions for the year 2020.Details of TransactionsJan-01 Trulia Advice Inc acquired $415,000 from the issue of common stock.2020Feb-02Collected $60,000 as an advance for consultancy services yet to be provided over one yearstarting May 1.Feb-25 Provided $26,460 of Consultancy Services on account.Mar-31 Paid $120,000 cash for the extension of the Office Building.Apr-15 Purchased $24,000 cash for a one-year insurance policy with coverage initiating 1st of July 20.Jun-10 Collected $18,400 from accounts receivable.Jul-25Aug-15Nov-10Dec-01Purchased $3,000 of Stationary for office use on the account.Paid $32,000 Cash for Wages to employees.Paid a dividend of 3% of Total Equity.Paid $3,000 to settle accounts payable related to stationery.Dec-20 $3,500 is recognized as Utility Bill expenses on account. Adjustments11223456As of 31st December 2020,Stationery of value $1,000 was found left in store that could be used next year.Earned $40,000 of the $60,000 of revenue deferred on Feb 2.Recognized $1,200 Rent revenue which is not received until 31st December 2020.$8000 was found accrued of Wages.Had used half of the $24,000 of insurance coverage that it had paid for on 15th April.Trulia Advice Inc had the following Balances at the beginning of 1st January 2020.a.Cash: $15,000,b. Common Stock $15,000C. There was no Retained Earnings opening balance.Required: Prepare [In the attached excel sheet]a) Journalb) T Account (Ledger Account)c) Trial Balanced) Statement of Changes in Equitye) Balance Sheet.

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: Trulia Advice Inc. is a multinational…

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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Question

Trulia Advice Inc. is a multinational financial consultancy services company that specialises in financial
consultancy services and consulting to big corporates to handle financial crisis. Following are the
transactions for the year 2020.
Details of Transactions
Jan-01 Trulia Advice Inc acquired $415,000 from the issue of common stock.
2020
Feb-02
Collected $60,000 as an advance for consultancy services yet to be provided over one year
starting May 1.
Feb-25 Provided $26,460 of Consultancy Services on account.
Mar-31 Paid $120,000 cash for the extension of the Office Building.
Apr-15 Purchased $24,000 cash for a one-year insurance policy with coverage initiating 1st of July 20.
Jun-10 Collected $18,400 from accounts receivable.
Jul-25
Aug-15
Nov-10
Dec-01
Purchased $3,000 of Stationary for office use on the account.
Paid $32,000 Cash for Wages to employees.
Paid a dividend of 3% of Total Equity.
Paid $3,000 to settle accounts payable related to stationery.
Dec-20 $3,500 is recognized as Utility Bill expenses on account.

Adjustments
1
12
2
3
4
5
6
As of 31st December 2020,
Stationery of value $1,000 was found left in store that could be used next year.
Earned $40,000 of the $60,000 of revenue deferred on Feb 2.
Recognized $1,200 Rent revenue which is not received until 31st December 2020.
$8000 was found accrued of Wages.
Had used half of the $24,000 of insurance coverage that it had paid for on 15th April.
Trulia Advice Inc had the following Balances at the beginning of 1st January 2020.
a.
Cash: $15,000,
b. Common Stock $15,000
C. There was no Retained Earnings opening balance.
Required: Prepare [In the attached excel sheet]
a) Journal
b) T Account (Ledger Account)
c) Trial Balance
d) Statement of Changes in Equity
e) Balance Sheet.

Expert Solution

Step 1

A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.
A ledger is a log or list of accounts that keep track of account transfers.
A trial balance's main function is to confirm that the entries in a firm's accounting system are mathematically valid.
An income statement is a financial report that indicates the revenue and expenses of a business. It also indicates when a business is profitable or losing money for a given time span.

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