Ask Accounting Basics Expert

Comprehensive Problem Inc.
                                      Trial Balance
                                     June 30, 2012

Cash                             $ 18,470   
A/R                                  14,333                           
Advertising Supplies              3,998
Prepaid Insurance               23,137
Equipment                        135,495
A/D – Equipment                                     $19,207
Accounts Payable                                     11,998
Unearned Service Revenue                         14,336
Notes Payable                                          62,679
Common Stock                                         67,546
Retained Earnings                                     19,667

Totals                             $195,433         $195,433

During the month of July, the following occurred:

July 2 Received $8,127 of the prior month’s receivables

July 3 Paid $5,220 of the prior month’s accounts payable and paid $3,200 for July rent

July 5 Earned $6,736 worth of the prior month’s unearned revenue

July 6 Provided a service and billed the client $3,376

July 9 Bought advertising supplies for $2,217 on account

July 10 Received $4,200 for a service to be provided

July 11 Provided a service and billed the client $7,366

July 12 Collected $9,127 of receivables

July 13 Paid $7,500 of the notes payable

July 16 Bought advertising supplies for $1,189 cash

July 18 Provided a service and billed the client $4,934

July 20 Received $2,700 for a service to be provided

July 23 Paid $4,223 travel expense (all for July travel)

July 24 Paid $2,400 of accounts payable

July 25 Paid temporary employees $3,356 of wages (all for July work)

July 26 Paid $5,000 of the notes payable

July 27 Paid the shareholder a $3,000 dividend

July 30 Provided a service fully earning the $4,200 from July 10

July 31 Paid the shareholder a $4,500 dividend

Required – Part A

Part A1 Provide general journal entries in general journal form for the above transactions

Part A2 Create a trial balance at July 31 fully taking into account the beginning balances and the general journal entries recorded in part

A1 (t-accounts are recommended for key accounts; do not hand them in t-accounts)

Adjusting Entry Information

a. The insurance expires at a rate of $1,218 per month

b. A month-end count reveals about $2,400 of advertising supplies remain on-hand

c. Annual depreciation (straight-line is used) is $19,356

d. A thorough analysis reveals only $3,200 of the unearned revenue is not yet earned at month-end

e. The interest on N/P for the month is $418 (hint: don’t increase the principal of the note)

f. Estimated expenditures for the month is $2,100 utilities and $800 telephone

g. A bank reconciliation reveals that a $4,000 payment from a client (A/R) was not recorded

Required – Part B

Part B1 Provide adjusting journal entries, in general journal form, for the above

Part B2 Create an adjusted trial balance

Part B3 Create an income statement and a statement of retained earnings for the month of July

Part B4 Create a balance sheet at 7/31/12

Part B5 Provide closing entries in general journal form

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91682

Have any Question?


Related Questions in Accounting Basics

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Question requirement 1 read the article in below attachment

Question: Requirement: 1. Read the article in below attachment, and answer the questions in a paper format. Read below requirements before your writing! 2. Not to list the answers, and you should write as a paper format. ...

Question as a financial consultant you have contracted with

Question: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a detailed report ill ...

Question the following information is taken from the

Question: The following information is taken from the accrual accounting records of Kroger Sales Company: 1. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (Febr ...

Assignment 1 lasa 2-capital budgeting techniquesas a

Assignment 1: LASA # 2-Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You ha ...

Assignment 2 discussion questionthe finance department of a

Assignment 2: Discussion Question The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the N ...

Question in this case you have been provided financial

Question: In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operat ...

Question 1what step in the accounting cycle do adjusting

Question: 1. What step in the accounting cycle do Adjusting Entries show up 2. How do these relate to the Accounting Worksheet? 3. Why are they completed at the end of each accounting period? The response must be typed, ...

Question is it important for non-accountants to understand

Question: Is it important for non-accountants to understand how to read financial statements? If you are not part of the accounting/finance function in a business what difference would it make? The response must be typed ...

Question refer to the hat rack cash flow statement 2002 in

Question: Refer to the Hat Rack Cash Flow Statement, 2002 in the text on page 17. Answer the following questions and submit to me via Canvas by the due date. 1. Cash flow from operations? 2. Cash flow from investing? 3. ...

  • 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