Homework Help is Here – Start Your Trial Now!
Business
Accounting
You must prepare a classified balance sheet.

You must prepare a classified balance sheet.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

You must prepare a classified balance sheet.

Additional Information: a The September 30 count of supplies shows $1,700 still available. b. The balance in the Prepaid Insurance account represents a six-month insurance premium ($4,800) paid on 7/3/2021 for coverage effective 7/1/2021. c. On 7/1/2021, Jane paid $7,200 for four months' worth of rent. At the time, she recorded the prepayment in the Rent Expense account. d. On 8/31/2021, Jane recorded a $2,000 advance from the Stanislaus County Sheriff K-9 unit in the Service Revenue account. As of 9/30/2021, Premier Pet Spa must still provide $1,650 worth of service to Stanislaus County. c. The furniture (cost: $2,800) was placed in service on 7/1/2021. It is expected to have a seven-year life and a $280 salvage value. The company uses the straight-line depreciation method. £ The balance in the Equipment account includes the $1,500 custom grooming machine that was purchased on September 30. Since that machine has not been placed in service yet, no depreciation will be taken on that piece of equipment. The remaining equipment (cost: $13,000) was placed in service on 7/1/2021. It is expected to have a five-year life and a $1,300 salvage value. The company uses the straight-line depreciation method. g In September, Premier Pet Spa provided $250 worth of services that the Modesto Police K-9 unit prepaid for on September 4. At the time of receipt, the $1,200 prepayment was recorded in a liability account.
Transcribed Image Text:Additional Information: a The September 30 count of supplies shows $1,700 still available. b. The balance in the Prepaid Insurance account represents a six-month insurance premium ($4,800) paid on 7/3/2021 for coverage effective 7/1/2021. c. On 7/1/2021, Jane paid $7,200 for four months' worth of rent. At the time, she recorded the prepayment in the Rent Expense account. d. On 8/31/2021, Jane recorded a $2,000 advance from the Stanislaus County Sheriff K-9 unit in the Service Revenue account. As of 9/30/2021, Premier Pet Spa must still provide $1,650 worth of service to Stanislaus County. c. The furniture (cost: $2,800) was placed in service on 7/1/2021. It is expected to have a seven-year life and a $280 salvage value. The company uses the straight-line depreciation method. £ The balance in the Equipment account includes the $1,500 custom grooming machine that was purchased on September 30. Since that machine has not been placed in service yet, no depreciation will be taken on that piece of equipment. The remaining equipment (cost: $13,000) was placed in service on 7/1/2021. It is expected to have a five-year life and a $1,300 salvage value. The company uses the straight-line depreciation method. g In September, Premier Pet Spa provided $250 worth of services that the Modesto Police K-9 unit prepaid for on September 4. At the time of receipt, the $1,200 prepayment was recorded in a liability account.
The unadjusted trial balance for Premier Pet Spa at September 30, 2021 is below Premier Pet Spa Trial Balance (Unadjusted) 09/30/2021 2 101 Cash 3 106 Accounts Receivable 5 126 6 127 128 163 7 9 8 167 10 201 236 13 301 303 15 403 16 600 17 652 18 655 20 660 Account Titles 21 677 22 680 23 684 24 Supplies Prepaid Advertising Prepaid Insurance Equipment Furniture Accounts Payable Unearned Service Revenue J. Smith-Capital J. Smith-Draws Service Revenue Advertising Expense Office Expense Rent Expense Repairs and Maintenance Expense Supplies Expense Utilities Expense Wages Expense Totals Dr Trial Balance 5,946 1.175 1,500 200 4,800 14,500 2.800 3.500 400 1,237 7,200 170 1,950 697 3,900 49,975 Cr 750 10 1.200 11 31.000 17,025 15 16 17 20 21 22 23 49,975 24 Instructions 1. Prepare a 10-column worksheet. Show the adjustments (a) through (g). Do not modify the top portion of the Unadjusted Trial Balance section of the worksheet. Add the adjustments-related accounts that you need below the Totals line. 2. Prepare an income statement for the three months ended September 30, 2021. 3. Prepare a statement of owner's equity for the three months ended September 30, 2021. 4. Prepare a classified balance sheet as of September 30, 2021. Use the information in Chapter 12 (pp. 396-397 and page 412).
Transcribed Image Text:The unadjusted trial balance for Premier Pet Spa at September 30, 2021 is below Premier Pet Spa Trial Balance (Unadjusted) 09/30/2021 2 101 Cash 3 106 Accounts Receivable 5 126 6 127 128 163 7 9 8 167 10 201 236 13 301 303 15 403 16 600 17 652 18 655 20 660 Account Titles 21 677 22 680 23 684 24 Supplies Prepaid Advertising Prepaid Insurance Equipment Furniture Accounts Payable Unearned Service Revenue J. Smith-Capital J. Smith-Draws Service Revenue Advertising Expense Office Expense Rent Expense Repairs and Maintenance Expense Supplies Expense Utilities Expense Wages Expense Totals Dr Trial Balance 5,946 1.175 1,500 200 4,800 14,500 2.800 3.500 400 1,237 7,200 170 1,950 697 3,900 49,975 Cr 750 10 1.200 11 31.000 17,025 15 16 17 20 21 22 23 49,975 24 Instructions 1. Prepare a 10-column worksheet. Show the adjustments (a) through (g). Do not modify the top portion of the Unadjusted Trial Balance section of the worksheet. Add the adjustments-related accounts that you need below the Totals line. 2. Prepare an income statement for the three months ended September 30, 2021. 3. Prepare a statement of owner's equity for the three months ended September 30, 2021. 4. Prepare a classified balance sheet as of September 30, 2021. Use the information in Chapter 12 (pp. 396-397 and page 412).
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS