Your group has been assigned the task of preparing the financial records and financial statements for K’s Trucking Services Ltd because the company currently does not have an accounting personnel do it. The company is owned by KerryAnn Smart, and its financial year end is December 31 each year. The previous account personnel who was employed to the company has provided the following information and transactions for 2023: Jan 1. Balances brought forward from 2022 – Cash $1,200,500; Accounts Receivable $355,500; Supplies $210,850; Motor Truck $1,500,000; Other Creditors $100,000; and Capital $3,166,850. Jan 2. The following assets were received from Paul Zoukis in exchange for capital in the company: cash - $250,105, accounts receivable - $300,000, supplies - $75,000, and Machinery and Equipment- $1,200,000. Feb 1. Paid fifteen (15) month’s rent on a lease rental for fully furnished office and parking space at $80,000 per month. Mar 30. Paid the premiums on the property and peril insurance policies for fourteen (14) months amounting to $280,000. April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $1,000,000. May 5. Purchased motor truck on account from Paul’s Auto Motors Co Ltd for $1,500,000. June 6. Received cash from clients on account, $300,000. June 10. Paid cash for security services amounting to $105,000. Aug 12. Paid Paul’s Auto Motors $500,000 of the debt incurred on May 5. Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $1,000,000. Sept 30. Paid part-time workers salary, $530,000. Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $950,950. Oct 30. Paid cash for supplies, $212,000. Oct 30. Recorded services provided on account for the period June to July, $850,000. Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $1,545,000. Nov 25. Received cash from clients on account, $550,000. Nov 27. Paid part-time workers for salary $840,000. Dec 29. Paid telephone bill for the year 2023 $340,000. Dec 30. Paid electricity bill for the year 2023 $425,000. Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $1,450,000. Dec 30. Recorded services provided on account for October to December 2023, $1480,000. Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Motor Truck 21 Other Creditors 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Security Expense 57 Income Summary Post the journal entries to their respective ledger accounts.

Your group has been assigned the task of preparing the financial records and financial statements for K’s Trucking Services Ltd because the company currently does not have an accounting personnel do it. The company is owned by KerryAnn Smart, and its financial year end is December 31 each year. The previous account personnel who was employed to the company has provided the following information and transactions for 2023: Jan 1. Balances brought forward from 2022 – Cash $1,200,500; Accounts Receivable $355,500; Supplies $210,850; Motor Truck $1,500,000; Other Creditors $100,000; and Capital $3,166,850. Jan 2. The following assets were received from Paul Zoukis in exchange for capital in the company: cash - $250,105, accounts receivable - $300,000, supplies - $75,000, and Machinery and Equipment- $1,200,000. Feb 1. Paid fifteen (15) month’s rent on a lease rental for fully furnished office and parking space at $80,000 per month. Mar 30. Paid the premiums on the property and peril insurance policies for fourteen (14) months amounting to $280,000. April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $1,000,000. May 5. Purchased motor truck on account from Paul’s Auto Motors Co Ltd for $1,500,000. June 6. Received cash from clients on account, $300,000. June 10. Paid cash for security services amounting to $105,000. Aug 12. Paid Paul’s Auto Motors $500,000 of the debt incurred on May 5. Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $1,000,000. Sept 30. Paid part-time workers salary, $530,000. Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $950,950. Oct 30. Paid cash for supplies, $212,000. Oct 30. Recorded services provided on account for the period June to July, $850,000. Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $1,545,000. Nov 25. Received cash from clients on account, $550,000. Nov 27. Paid part-time workers for salary $840,000. Dec 29. Paid telephone bill for the year 2023 $340,000. Dec 30. Paid electricity bill for the year 2023 $425,000. Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $1,450,000. Dec 30. Recorded services provided on account for October to December 2023, $1480,000. Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Motor Truck 21 Other Creditors 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Security Expense 57 Income Summary Post the journal entries to their respective ledger accounts.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3TP: Assume you are a newly-hired accountant for a local manufacturing firm. You have enjoyed working for...

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