Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Case Problem -

On April 1, 2017, Lynn Garcia began her business, Lynn's Music Studio. All the daily activities for the month of April-including entering and paying bills, writing checks, recording of sales (both cash and on account), collection of receivables, and depositing receipts-have been recorded. It is the end of the first month of business; the adjusting journal entries need to be recorded, and financial statements need to be printed. You will record the adjusting journal entries for April 30 using the information provided below. The company file includes the account balances for Lynn's Music Studio based on the transactions recorded in Chapters 2 and 3.

1. Open the company file CH4 Lynn's Music Studio.QBW.

2. Make a backup copy of the company file and name it LMS4 [Your Name] Lynn's Music Studio.

3. Restore the backup copy of the company file. In both the Open Backup Copy and Save Company File as windows, use the file name LMS4 [Your Name] Lynn's Music Studio.

4. Change the company name to LMS4 [Your Name] Lynn's Music Studio.

5. Add the following accounts to the Chart of Accounts List:

  • Type: Expense
  • Number: 6300
  • Name: Music Supplies Expense

 

  • Type: Expense
  • Number: 6325
  • Name: Office Supplies Expense

Delete the following account: Advertising Expense.

6. Display and print the Trial Balance report before preparing the adjusting journal entries (April 1, 2017-April 30, 2017).

7. Use the information that follows to prepare adjusting journal entries. Record each adjusting journal entry separately, and use April 30, 2017, for the date.

a. The prepaid insurance represents a 1-year policy. Record insurance expense for 1 month. Refer to the trial balance to determine the amount in the Prepaid Insurance account. For Entry No., use AJE1.

b. Monthly depreciation on the assets: $60 for the Music Instruments, $40 for the Furniture, and $35 for the Computers. Record each depreciation expense as a separate adjusting journal entry.

c. The music supplies on hand total $430. Compare with the amount in the Music Supplies account to determine how much of the music supplies has been used, then record the music supplies expense.

d. The office supplies on hand total $300. Compare with the amount in the Office Supplies account to determine how much of the office supplies has been used, then record the office supplies expense.

e. The interest on the note payable for 1 month is $51. Record the interest expense. Add to the Chart of Accounts List, the Interest Payable account, Other Current Liability, number 2030.

8. Display and print the following reports for April 30, 2017:

a. Adjusted Trial Balance (worksheet): Change Interest Expense to $15 (April 1, 2017-April 30, 2017)

b. Journal: Only the adjusting journal entries (April 30, 2017-April 30, 2017)

c. Trial Balance: Change name in header of the report to Adjusted Trial Balance (April 1, 2017-April 30, 2017)

d. Profit & Loss Standard (April 1, 2017-April 30, 2017)

e. Balance Sheet Standard (April 30, 2017)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92498103

Have any Question?


Related Questions in Accounting Basics

Question in each of the following scenarios prepare journal

Question: In each of the following scenarios, prepare journal entries, as necessary, or give proper accounting recognition. For each, tell why you made an entry or accounting recognition or why you did not. 1. Identify t ...

Question - overhead variances two- and three-variance

Question - Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual out ...

Question - moath company reports the following for the

Question - Moath Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 204 $6 $1,224 June 12 Purchase 408 7 2,856 June 23 Purchase 306 8 2,448 June 30 Inventory ...

Question - a 1000 investment pays 10 percent compounded

Question - A $1,000 investment pays 10 percent compounded annually for 2 years; another pays 10 percent compounded semiannually for 2 years. Calculate the future value of both investments at the end of year 2, and explai ...

Question - kramer corp reported the following sale and

Question - Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2017: Date Transaction Quantity Unit Cost Unit Sales Price Jan 01 Beginning inventory 5 $90 Jan 03 Sa ...

Question -what would you pay for an investment that pays

Question - What would you pay for an investment that pays you $5300000 after fifty years? Assume that the relevant interest rate for this type of investment is 8%. Vaughn Manufacturing makes an investment today (January ...

Question - nmc has an average charge per client per of

Question - NMC has an average charge per client per of $12.00.its overhead are $15,956 and the trainer takes $* from every commission /charge. How many clients does the NMC need to serve in a year to break even? The trai ...

Question purpose of assignmentthis assignment is critical

Question: Purpose of Assignment This assignment is critical for students to gain a fundamental understanding of management's and auditor's responsibility for detecting errors, material fraud, and illegal acts. This assig ...

Question 1 use the information to complete the 1120s tax

Question: 1. Use the information to complete the 1120S Tax Form. Once you have completed the form, prepare a 250-500-word summary in which you evaluate how various organizational legal forms (LLC, sole proprietorship, C- ...

Question - on january 1 2015 canden company started to make

Question - On January 1, 2015, Canden Company started to make annual deposits in order to accumulate $1,500,000 by January 1, 2019. This fund will earn annual interest of 8%. What are the four annual deposits that Canden ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As