Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Customers still more operates a private investigating agency called still more investigations. Some customers pay in advance for services; others are billed after services have been performed. Advanced payments are credited to an account entitled unearned retainer fees. Adjusting entries are performed on a monthly basis, the unadjusted trial balance accounts as of Dec. 31, 2008 are provided to you in random order as follows:

[Considering that adjusting entries have been made for the 1st eleven months of 2008, but not for the month of December]

 

DR

 

CR

Cash                               

$40,585

 

 

 

 

 

Office equipment

 

54,000

 

 

 

 

Accounts payable

 

 

 

 

1,400

 

Unearned retainer fees

 

 

 

3,500

 

 

Accounts receivable

 

2,000

 

 

 

 

Retained earnings

 

 

 

 

8,000

 

Office supplies

 

205

 

 

 

 

Prepaid rent

 

 

1,200

 

 

 

Accumulated depreciation office equipment

35,250

 

 

 

 

 

Unexpired insurance

 

270

 

 

 

 

Dividends

 

 

 

 

 

1,000

 

 

 

Client fees earned

 

 

 

 

 

 

60,000

 

 

Interest payable

 

 

 

 

 

 

360

 

 

Capital stock

 

 

 

 

 

 

 

30,000

 

Depreciation expense-office equipment

8,250

 

 

 

 

 

 

 

 

Income tax payable

 

 

 

 

 

 

1,750

 

 

Notes payable

 

 

 

 

 

 

 

9,000

 

Office supplies expense

 

605

 

 

 

 

 

   

Rent expense

 

 

 

 

5,775

 

 

 

 

Insurance expense

 

 

 

1,010

 

 

 

 

 

Salaries expense

 

 

 

27,100

 

 

 

 

 

Interest expense

 

 

 

360

 

 

 

 

 

Income tax expense

 

 

6,900

 

 

 

 

   

 

 

 

 

 

 

__________________________________

     

 

 

 

 

Totals

 

 

$149,260

 

$149,260

Other Information:

[A] Accrued but unrecorded client fees earned at Dec. 31 amounted to $1500

[B] records show that $2500 of cash receipts originally recorded as unearned retainer fees had been earned as of dec. 31

[C] office supplies on hand at Dec 31 amounts to $110

[D] the company purchased all of its office equipment when it first began business at that time the equipment estimated useful life was 6 years

[E] on oct. 1,2008 the company renewed its rental agreement paying $1,800 cash for 6 months rent in advance

[F] on march 1 of the current year the company paid $1080 cash to renew its 12 month insurance policy

[G] accrued but unrecorded salaries at Dec. 31 amount to $1900

[H] On June 1, 2008 the company borrowed money from the bank by signing a $9000, 8 percent, 12 month note payable. The entire note plus 12 months accrued interest is due on May 31 2009

[I] the company's CPA estimates that income taxes expense for the entire year is $7500

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920649

Have any Question? 


Related Questions in Basic Finance

The harvester collects 25 percent of sales in the month of

The Harvester collects 25 percent of sales in the month of sale, 60 percent of sales in the month following the month of sale, and 15 percent of sales in the second month following the month of sale. During the month of ...

You are the auditor of piedmore corporation you determine

You are the auditor of Piedmore Corporation. You determine that the accounts receivable turnover has been much slower this period than in prior periods and that it is also materially lower than the industry average. How ...

Discussion questionliabilities please respond to the

Discussion Question "Liabilities" Please respond to the following: • Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $ ...

John just received a settlement in a lawsuit that promises

John just received a settlement in a lawsuit that promises $270 in 7 years. The lawsuit will also pay him a second amount of $490 that will be received in 12 years. John, being profligate, wants instead to spend the sett ...

1 holding the cutoff period fixed which method has a more

1. Holding the cutoff period fixed, which method has a more severe bias against long-lived projects, payback or discounted payback? 2. For a firm that uses the NPV rule to make investment decisions, what consequences res ...

Assume that you are the manager of a financially distressed

Assume that you are the manager of a financially distressed corporation, with $1.5 million in debt outstanding, which will mature in two months. Your firm currently has $1 million cash on hand. Assuming that you are oper ...

A lsquolsquocooling bag commonly used for storing water in

A ‘‘cooling bag,'' commonly used for storing water in hot, arid environments is made of a thin porous fabric. A small amount of water diffuses through the fabric and evaporates from the surface of the bag. The rate of ev ...

1 statistical measure of stand - alone risk calculate the

1. Statistical Measure of Stand - Alone Risk: Calculate the expected returns for the individual stocks in Juan's portfolio as well as the expected rate of return of the entire portfolio over the three possible market con ...

In april 2010 christina romer who was then serving as chair

In April 2010, Christina Romer, who was then serving as chair of the President's Council of Economic Advisers, argued: "The overwhelming weight of the evidence is that the current very high-and very disturbing-levels of ...

What information can be identified in the statement of cash

What information can be identified in the statement of cash flows that cannot be found in the other statements?

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro