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

Explain why an options time value is greatest when the

Explain why an option's time value is greatest when the stock price is near the exercise price and why it nearly disappears when the option is deep-in- or out-of-the-money? Critique the following statement, made by an op ...

Show how a combination of interest rate caps and floors can

Show how a combination of interest rate caps and floors can be equivalent to an interest rate swap ? What are the advantages and disadvantages of an interest rate collar over an interest rate cap? Explain how the Black m ...

Part a answer each of the following questions in a

Part A: Answer each of the following questions in a composition of one to two paragraphs, or perform calculations as requested. 1. Define liquidity risk, default risk and taxability risk, and explain how these risks rela ...

1 how may the use of leases shift the risk of rising

1. How may the use of leases shift the risk of rising expenses from the lessor to the lessee? 2. What is the difference between base or face rents and effective rents? 3. What is meant by useable vs. rentable space? 4. W ...

1 give examples of disclosure in notes with personal

1. Give examples of disclosure in notes with personal financial statements. 2. If quoted market prices are not available, a personal financial statement cannot be prepared. Comment. 3. List some objectives that could be ...

1 why can the current movement toward establishing supply

1. Why can the current movement toward establishing supply chains be characterized as a revolution? 2. Compare the concept of a modern supply chain with more traditional distribution channels. Be specific regarding simil ...

Go to the financeyahoocom web site and click on the dow

Go to the finance.yahoo.com Web site and click on the Dow index. Select "Historical Prices" and download the monthly data for the Dow back to 1929. Graph these data using an Excel spreadsheet and comment on any strong pa ...

The concepts discussed in this section can also be applied

The concepts discussed in this section can also be applied to eliminate partially dead code. A definition of a variable is partial ly dead if the variable is live on some paths and not others. We can optimize the program ...

1 define security interest and how it has been used in real

1. Define security interest and how it has been used in real estate finance since the Industrial Revolution. 2. What is meant by the term collateral? By hypothecation? 3. What is the purpose of a promissory note? Of a mo ...

1 describe the actions you will take ie increasing

1. Describe the actions you will take (i.e., increasing deductions or reducing gross income) to achieve tax savings in the present year. 2. Detail the means by which you will reduce your tax liability in the future (i.e. ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen