Welcome to TutorsOnSpot.Com!

World's No. 1 Assignment Writing Market

Post Your Homework

Proposals

Post your homework and get free proposals here!

Post Your Homework

Stuck in your homework and missing deadline?

Get Urgent Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework Writing

100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Get Free 2 Pages Post Your Requirements And Get Free Help

Business Description of the ABC Corporation

Category: Accounting & Finance Paper Type: Report Writing Reference: APA Words: 1000

The ABC Corporation provides services of Book keeping and other financial services to its client. In the month following transactions were occurred which are mentioned below:

1. The owner of the business has invested 500,000 as cash
2. The owner of Business as invested 100,000 as computer equipment.

3. The business has paid for office rent 15,000

4. The business has purchase equipment worth 12000

5. Services provided to the client on credit [ accounts receivable] 32000

6. Services provided to the customer on credit 2700

7. More equipment were purchase for business worth 8000

8. Wages were paid to the assistant 6200

9. Collected cash from accounts receivable 15,000

10. 12000 paid for the equipment [purchased on credit]

11. The owner from the business has withdrew cash of 500

12. Client paid for the services up to 50%

13. Salary to the assistant 700

14. Utility company (BM) has been paid

15. Utility company (ST) have been paid.

Date	Particulars	Debit	Credit
1	Cash A/c	500,000
	Capital A/c		500,000
	(The owner of the business has stared business with the capital)
2	Computer Equipment A/c	100,000
	Capital A/c		100,000
	(The Owner has invested computer equipment in business)
3	Rent Expense A/c	15000
	Cash A/c		15000
	( The business has paid for office rent)
4	Equipment A/c	12000
	Creditors A/c		12000
	( The business has purchase equipment)
5	Cash A/c	32,000
	Services Rendered A/c		32, 000
	(Services provided to the client on credit)
6	Debtor A/c	27,000
	Services Rendered A/c		27,000
	(Services provided to the customers on credit)
7	Equipment A/c	8000
	Cash A/c		8000
	( More equipment were purchase for business)
8	Salaries & wages	6200
	Cash A/c		6200
	( Wages were paid to the assistant)
9	Cash A/c	15000
	Accounts receivable		15000
	( Cash is received from debtors)
10	Creditors A/c	12, 000
	Cash A/c		12, 000
	(Paid 12000 to the creditors for the equipment purchased on credit)
11	Drawings	500
	Cash A/c		500
	( The owner from the business has withdrew cash)
12	Cash	40,000
	Debtors	40,000
	Services Rendered A/c		80,000
	(Client paid for the service)
13	Salaries & wages	700
	Cash A/c		700
	( Salary to the assistant)
14	Utilities Expense (BM) A/c	1800
	Creditors A/c		1800
	( Utility company (BM) has been paid)
15	Utilities Expense (ST) A/c	3800
	Creditors A/c		3800
	(Utility company (ST) have been paid)

Ledgers of the ABC Corporation

		Cash
Date	particular	amount	date	particular	amount
	capital	500,000		rent	15000
	services	32000		equipment	8000
	Accounts receivable	15000		wages	6200
	services	40,000		Creditors	12000
				Drawings	500
				Salary	700
				Balance	544600

	total	587000		Total	587000

		Computer Equipment

Date	particular	amount	date	particular	amount

	Capital	100,000		Balance	100,000





	Total	100,000			100,000

		Equipment Account

Date	particular	amount	date	particular	amount

	Creditors	12000		Balance	20,000
	Cash	8000




	total	20,000		total	20,000

		Rent Expense account

Date	particular	amount	date	particular	amount

	Cash	15000		Balance	15000




	Total	15000			15000

		Creditor Account

Date	particular	amount	date	particular	amount

	Cash	12000		Equipment	12000
				Utility (BM)	1800
				Utility (ST)	3800
	Balance	5600


	total	17600			17600

		Sales on credit

Date	particular	amount	date	particular	amount

				Cash	32,000
				Debtors	27,000
				Cash	40,000
	Balance	139,000		Debtors	40,000


	total	139,000			139,000

		Creditors Account

Date	particular	amount	date	particular	amount

	Services	27,000		Cash	15,000
	Services	40,000
				Balance	52,000


	total	67,000			67,000

		Capital Account

Date	particular	amount	date	particular	amount

				Cash	500,000

	Balance	600,000		Computer equipment	100,000



		600,000			600,000

		Salaries & wages Account

Date	particular	amount	date	particular	amount

	Cash	6200		Balance	6900

	Cash	700



	total	6900			6900

		Drawings account

Date	particular	amount	date	particular	amount


	Cash	500		Balance	500




	total	500			500

		Utilities Expense Account (BM)

Date	particular	amount	date	particular	amount

	Creditors	1800		Balance	1800




	total	1800			1800

		Utilities Expense Account (ST)

Date	particular	amount	date	particular	amount


	Creditors	3800		Balance	3800




	Total	3800			3800

ABC Corporation Trail Balance December 31, 2018
Particulars	Debit	Credit
Equipment	20,000
Computer Equipment	100,000
Cash	544,600
Accounts receivable	52,000
Capital		600,000
Creditors		5,600
Drawings	500
Services rendered		139,000
Salaries & wages	6900
Rent	15000
Utilities expense (BM)	1800
Utilities expense (ST)	3800

Total	744,600	744,600

Adjusting Entries

Date	Particulars	Debit	Credit
1	Depreciation – Computer Equipment	50,000
	Accumulated Depreciation – Computer Equipment		50,000
	(The Computer Equipment’s Depreciation accrued)
2	Depreciation –Equipment	10,000
	Accumulated Depreciation –Equipment		10,000
	(The Computer Equipment’s Depreciation accrued)
3	Salaries Expense	300
	Salaries Payable		300
	(Salaries expense accrued)
4	Utilities expense	120
	Utilities Payable		120
	(Accrued expense Utilities)

Adjusted Trial Balance of the ABC Corporation

ABC Corporation Adjusted Trail Balance December 31, 2018
Particulars	Debit	Credit
Equipment	20,000
Computer Equipment	100,000
Cash	544,600
Accounts receivable	52,000
Capital		600,000
Creditors		5,600
Drawings	500
Services rendered		139,000
Salaries & wages	7200
Utilities expense	120
Utilities payable		120
Depreciation – Computer equipment	50,000
Depreciation – Equipment	10,000
Accumulated Depreciation – Computer Equipment		50,000
Accumulated Depreciation - Equipment		10,000
Salaries Payable		300
Rent	15000
Utilities expense (BM)	1800
Utilities expense (ST)	3800

Total	805,020	805,020

Income Statement of the ABC Corporation

ABC Corporation of the ABC Corporation

As on December 31, 2018

Particulars	Amount	Amount
Revenue		139,000
Expenses
Rent	15000
Salaries & wages	6900
Utilities Expense	1800
Utilities Expense	3800
Total Expense		27500
Net Income		111500

Balance Sheet

ABC Corporation

As on December 31, 2018

Assets
Equipment		20,000
Computer Equipment		100,000
Cash		544,600
Debtors		52,000
Total Assets		716600
Liabilities
Capital	600,000
Creditors	5,600
Drawings	500	606100
Equity		110500
Total Liability & Equity		716600