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Christine ewing is a licensed cpa

14/10/2021 Client: muhammad11 Deadline: 2 Day

(Transaction Analysis–Service Company)

Christine Ewing is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.

April 2

Invested $35,197 cash and equipment valued at $18,933 in the business.

Hired a secretary-receptionist at a salary of $290 per week payable monthly.

Purchased supplies on account $712. (Debit an asset account.)

Paid office rent of $684 for the month.

Completed a tax assignment and billed client $1,555 for services rendered. (Use Service Revenue account.)

Received $3,483 advance on a management consulting engagement.

Received cash of $3,043 for services completed for Ferengi Co.

Paid insurance expense $171.

Paid secretary-receptionist $1,668 for the month.

A count of supplies indicated that $209 of supplies had been used.

Purchased a new computer for $6,135 with personal funds. (The computer will be used exclusively for business purposes.)

Journalize the transactions in the general journal. (If no entry is required, enter No entry as the account and 0 for the amount. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date

Description/Account

Debit

Credit

Apr. 2

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Apr. 2

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Apr. 3

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Apr. 7

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Apr. 11

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Apr. 12

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Apr. 17

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Apr. 21

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Apr. 30

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Apr. 30

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Apr. 30

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(Corrected Trial Balance)

The trial balance of Geronimo Company does not balance. Your review of the ledger reveals the following: (a) Each account had a normal balance. (b) The debit footings in Prepaid Insurance, Accounts Payable, and Property Tax Expense were each understated $1,000. (c) A transposition error was made in Accounts Receivable and Service Revenue; the correct balances for Accounts Receivable and Service Revenue are $2,750 and $6,690, respectively. (d) A debit posting to Advertising Expense of $300 was omitted. (e) A $3,321cash drawing by the owner was debited to Geronimo, Capital, and credited to Cash.

GERONIMO COMPANY

Trial Balance

April 30, 2012

Debit

Credit

Cash

$2,219

Accounts Receivable

2,570

Prepaid Insurance

893

Equipment

$8,119

Accounts Payable

4,693

Property Tax Payable

753

Geronimo, Capital

11,319

Service Revenue

6,960

Salaries Expense

4,081

Advertising Expense

1,293

Property Tax Expense

800

$18,769

$24,931

Prepare a correct trial balance. (If answer is zero, please enter 0, do not leave any fields blank.)

GERONIMO COMPANY

Trial Balance

April 30, 2012

Debit

Credit

Cash

$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Accounts Receivable

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Prepaid Insurance

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Equipment

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Accounts Payable

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Property Tax Payable

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Geronimo, Capital

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Geronimo, Drawing

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Service Revenue

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Salaries Expense

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Advertising Expense

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Property Tax Expense

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

(Corrected Trial Balance)

The trial balance of Scarlatti Corporation does not balance.

SCARLATTI CORPORATION

Trial Balance

April 30, 2012

Debit

Credit

Cash

$6,037

Accounts Receivable

5,240

Supplies on Hand

3,092

Furniture and Equipment

6,100

Accounts Payable

$7,044

Common Stock

8,125

Retained Earnings

2,125

Service Revenue

5,200

Office Expense

4,320

$24,789

$22,494

An examination of the ledger shows these errors.

Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.

The purchase on account of a computer costing $3,682 was recorded as a debit to Office Expense and a credit to Accounts Payable.

Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.

A payment of $95 for telephone charges was entered as a debit to Office Expenses and a debit to Cash.

The Service Revenue account was totaled at $5,200 instead of $5,280.

From this information prepare a corrected trial balance. (If answer is zero, please enter 0, do not leave any fields blank.)

SCARLATTI CORPORATION

Trial Balance

April 30, 2012

Debit

Credit

Cash

$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Accounts Receivable

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Supplies on Hand

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Furniture and Equipment

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Accounts Payable

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Common Stock

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Retained Earnings

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Service Revenue

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Office Expense

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

(Adjusting Entries)

The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.

Debit

Credit

Prepaid Insurance

$3,600

Supplies

2,800

Equipment

25,000

Accumulated Depreciation-Equipment

$8,400

Notes Payable

20,000

Unearned Rent Revenue

9,300

Rent Revenue

60,000

Interest Expense

-0-

Wage Expense

14,000

An analysis of the accounts shows the following.

The equipment depreciates $349 per month.

One-third of the unearned rent was earned during the quarter.

Interest of $571 is accrued on the notes payable.

Supplies on hand total $895.

Insurance expires at the rate of $344 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense.

Description/Account

Debit

Credit

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(Adjusting Entries)

Stephen King, D.D.S., opened a dental practice on January 1, 2012. During the first month of operations the following transactions occurred.

Performed services for patients who had dental plan insurance. At January 31, $780 of such services was earned but not yet billed to the insurance companies.

Utility expenses incurred but not paid prior to January 31 totaled $581.

Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable. The equipment depreciates $486 per month. Interest is $500 per month.

Purchased a one-year malpractice insurance policy on January 1 for $12,000.

Purchased $1,600 of dental supplies. On January 31, determined that $538 of supplies were on hand.

Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation–Dental Equipment; Depreciation Expense; Service Revenue; Accounts Receivable; Insurance Expense; Interest Expense; Interest Payable; Prepaid Insurance; Supplies; Supplies Expense; Utilities Expense; and Utilities Payable.

Description/Account

Debit

Credit

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(To record depreciation expense.)

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(To record interest expense.)

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(Analyze Adjusted Data)

A partial adjusted trial balance of Safin Company at January 31, 2012, shows the following.

SAFIN COMPANY

Adjusted Trial Balance

January 31, 2012

Supplies

$970

Prepaid Insurance

4,020

Salaries Payable

$1,070

Unearned Revenue

1,020

Supplies Expense

950

Insurance Expense

670

Salaries Expense

2,070

Service Revenue

2,270

Answer the following questions, assuming the year begins January 1.

(a)

If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1?

$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

(b)

If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium of the policy?

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(c)

If $2,770 of salaries was paid in January, what was the balance in Salaries Payable at December 31, 2011?

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(d)

If $1,870 was received in January for services performed in January, what was the balance in Unearned Revenue at December 31, 2011?

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(Prepare Financial Statements)

The adjusted trial balance of Cavamanlis Co. as of December 31, 2012, contains the following.

CAVAMANLIS CO.

Adjusted Trial Balance

December 31, 2012

Account Titles

Debit

Credit

Cash

$19,632

Accounts Receivable

7,580

Prepaid Rent

2,940

Equipment

18,710

Accumulated Depreciation

$5,555

Notes Payable

6,360

Accounts Payable

5,132

Common Stock

20,660

Retained Earnings

11,970

Dividends

3,660

Service Revenue

13,250

Salaries Expense

7,500

Rent Expense

2,663

Depreciation Expense

242

Interest Expense

180

Interest Payable

180

$63,107

(a)

Prepare an income statement. (List multiple entries from largest to smallest amount, e.g. 10, 5, 2.)

CAVAMANLIS CO.

Income Statement

For the Year Ended December 31, 2012

Revenues

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Expenses

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Net Income

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(b)

Prepare a statement of retained earnings.

CAVAMANLIS CO.

Statement of Retained Earnings

For the Year Ended December 31, 2012

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Add: http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Less: http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

(c)

Prepare a classified balance sheet. (List assets in order of liquidity and liabilities in order from largest to smallest amounts, e.g. 15, 11, 7.)

CAVAMANLIS CO.

Balance Sheet

December 31, 2012

Assets

Current Assets

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Total current assets

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Property, plant, and equipment

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Less: http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Total assets

$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Liabilities and Stockholders' Equity

Current liabilities

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Total current liabilities

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Stockholders' equity

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Total liabilities and stockholders' equity

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(Closing Entries for a Corporation)

Presented below are selected account balances for Alistair Co. as of December 31, 2012.

Merchandise Inventory 12 ⁄31 ⁄12

$62,504

Cost of Goods Sold

$228,046

Common Stock

75,077

Selling Expenses

17,381

Retained Earnings

46,013

Administrative Expenses

38,028

Dividends

18,926

Income Tax Expense

32,801

Sales Returns and Allowances

12,430

Sales Discounts

15,203

Sales

412,188

Prepare closing entries for Alistair Co. on December 31, 2012. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Description/Account

Debit

Credit

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(To close sales account.)

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(To close expense accounts.)

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(To close net income to retained earnings.)

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(To close dividends to retained earnings.)

(Transactions, Financial Statements - Service Company)

Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of September.

Sep. 1

Kawabuta begins practice as a dentist and invests $24,030 cash.

Purchases furniture and dental equipment on account from Green Jacket Co. for $18,960.

Pays rent for office space, $840 for the month.

Employs a receptionist, Michael Bradley.

Purchases dental supplies for cash, $976.

Receives cash of $1,770 from patients for services performed.

Pays miscellaneous office expenses, $450.

Bills patients $5,900 for services performed.

Pays Green Jacket Co. on account, $5,480.

Withdraws $3,110 cash from the business for personal use.

Receives $1,030 from patients on account.

Bills patients $3,010 for services performed.

Pays the following expenses in cash: office salaries $2,740; miscellaneous office expenses $98.

Dental supplies used during September, $430.

http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Enter the transactions shown above in appropriate general ledger accounts. Use the following ledger accounts: Cash; Accounts Receivable; Supplies on Hand; Furniture and Equipment; Accumulated Depreciation; Accounts Payable; Yasunari Kawabata, Capital; Service Revenue; Rent Expense; Miscellaneous Office Expense; Office Salaries Expense; Supplies Expense; Depreciation Expense; and Income Summary. Record depreciation using a 5-year life on the furniture and equipment, the straight-line method, and no salvage value. Do not use drawing and retained earnings accounts. (List multiple Income Summary entries in order of expense accounts appearance.)

Cash

Furniture And Equipment

Sep.1

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Sep.4

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Sep. 2

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Yasunari Kawabata, Capital

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Sep.19

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Sep. 1

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Sep. 30

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Bal. 30

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Bal. 30

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Accounts Payable

Sep. 18

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Sep. 2

http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Accounts Receivable

Bal. 30

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Sep. 14

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Sep. 20

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Service Revenue

Bal. 30

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Sep. 30

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Sep. 8

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Rent Expense

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Sep. 4

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Sep. 30

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Supplies on Hand

Accumulated Depreciation

Sep. 5

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Sep. 30

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Sep. 30

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Bal. 30

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Income Summary

Miscellaneous Office Expense

Sep. 30

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Sep. 30

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Sep. 10

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Sep. 30

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Office Salaries Expense

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Sep. 30

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Sep. 30

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Supplies Expense

Depreciation Expense

Sep. 30

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Sep. 30

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Sep. 30

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Sep. 30

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Prepare a trial balance. (If answer is zero please enter 0, do not leave any answer blank.)

YASUNARI KAWABATA, D.D.S.

Trial Balance

September 30

Debit

Credit

Cash

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Accounts Receivable

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Supplies on Hand

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Furniture and Equipment

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Accumulated Depreciation

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Accounts Payable

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Yasunari Kawabata, Capital

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Service Revenue

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Rent Expense

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Miscellaneous Office Expense

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Office Salaries Expense

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Supplies Expense

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Depreciation Expense

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Totals

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Prepare an income statement, a statement of owner's equity, and an unclassified balance sheet. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

YASUNARI KAWABATA, D.D.S.

Income Statement

For the Month of September

Revenues:

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Expenses:

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Total Expenses

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Net Income

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YASUNARI KAWABATA, D.D.S.

Statement of Owner's Equity

For the Month of September

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Less: http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

YASUNARI KAWABATA, D.D.S.

Balance Sheet

As of September 30

Assets

Liabilities and Owner's Equity

Cash

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Accounts Payable

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Accounts Receivable

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Yasunari Kawabata, Capital

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Supplies

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Furniture and Equip.

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Acc. Depreciation

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Total liabilities and owner's equity

Total assets

$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

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Prepare a post-closing trial balance. (If answer is zero please enter 0, do not leave any answer blank.)

YASUNARI KAWABATA, D.D.S.

Post-closing Trial Balance

September 30

Debit

Credit

Cash

$http://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Accounts Receivable

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Supplies on Hand

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Furniture and Equipment

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Accumulated Depreciation

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Accounts Payable

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Yasunari Kawabata, Capital

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Totals

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Homework is Completed By:

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