Kevin Steven opened a small tax-preparation service. Steven Tax Services trial balance at the end of its
Question:
Kevin Steven opened a small tax-preparation service. Steven Tax Service’s trial balance at the end of its second year of operation is as follows.
The following information is also available:
a. Office supplies on hand, December 31, 2014, $227
b. Insurance still unexpired, $120
c. Estimated depreciation of office equipment, $770
d. Telephone expense for December, $19; the bill was received but not recorded.
e. The services for all unearned tax fees had been performed by the end of the year.
REQUIRED
1. Open T accounts for the accounts in the trial balance plus the following: Office Supplies Expense; Insurance Expense; and Depreciation Expense—Office Equipment. Record the balances shown in the trial balance.
2. Determine the adjusting entries and post them directly to the T accounts.
3. Prepare an adjusted trial balance, an income statement, a statement of owner’s equity, and a balance sheet. The owner made no investments during the period.
4. Why is it not necessary to show the effects of the above transactions on the statement of cashflows?
Steven Tax Service Trial Balance December 31, 2014 Cash Accounts Receivable Prepaid Insurance Office Supplies Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Unearned Tax Fees K. Steven, Capital K. Steven, Withdrawals Tax Fees Revenue Office Salaries Expense Advertising Expense Rent Expense Telephone Expense 2,268 1,031 240 782 7,100 770 635 219 5,439 6,000 21,926 8,300 650 2,400 218 28,989 28,989
Step by Step Answer:
1 and 2 Cash Accounts Receivable Prepaid Insurance Bal 2268 Bal 1031 Bal 240 b 120 Bal 120 Accumulated Depreciation x Office Supplies Office Equipment ...View the full answer
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
Students also viewed these Accounting questions
-
At the end of its second year of operation, Jacobs Financial Advisors, Inc., had the trial balance that follows. The following information is also available: a. Office supplies on hand, December 31,...
-
Steven Tax Service, Inc.'s trial balance at the end of its second year of operation is as follows The following information is also available: a. Office supplies on hand, December 31, 2014, $227 b....
-
The following project is at the end of its sixth week. Find the cost and schedule variances. Also find the CPI, SPI, ETC, and EAC for theproject. Pre- Duration BudgetActual (wks) Cost () Copete...
-
BACKGROUND The company, North S.L., has the following information in the Balance Sheet and Profit and Loss Account for 2016, before calculating its Corporate Tax: BALANCE SHEET ASSETS LIABILITIES...
-
A study was conducted by Joseph Jacobson and Diane Wille to determine the effect of early child care on infant-mother attachment patterns.5 In the study, 93 infants were classified as either "secure"...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. A grantor of a life estate in real property maintains a reversion estate.
-
Why are insurance policies held by the parties discoverable?
-
The adjusted trial balance of Business Reduction Systems at March 31, 2016, follows: Requirements 1. Journalize the required closing entries at March 31, 2016. 2. Set up T-accounts for Income...
-
A manufacturing company which produces a range of products has developed a budget for the life - cycle of a new product, P . The information in the following table relates exclusively to product P:...
-
Prepare a balance sheet as of June 30, for the J. L. Gregory Company, using the following data: Accounts payable Accounts receivable Accrued expenses Accumulated depreciation 241,000 505,000 107,000...
-
On June 30, the end of the current fiscal year, the following information is available to BND Companys accountants for making adjusting entries: a. Among the liabilities of the company is a mortgage...
-
At the end of the first three months of operation, Evergreen Repairs trial balance is as follows. Jonah Kita, Evergreens owner, has hired an accountant to prepare financial statements to determine...
-
Previously, an organization reported that teenagers spent 4.5 hours per week, on average, on the phone. The organization thinks that, currently, the mean is higher. Fifteen randomly chosen teenagers...
-
How would these advantages differ from the advantages of using a long term perspective in managing our resources ?
-
You have a stock bottle of 3mM tetrodotoxin solution, but your protocol states that you need 6ml of 1mM tetrodotoxin (MW-319.27 g/mol). How much of your 3mM stock solution (liquid) should you use to...
-
Suppose that Britain pegs the pound to gold at 7 pounds per ounce, whereas the exchange rate between pounds and U.S. dollars Is $1 = 0.14 1. What would an ounce of gold be worth In U.S. dollars...
-
U.S. Telephone Cellular sells phones for $100. The unit variablecost per phone is $50 plus a selling commission of 15% (based onthe unit sales price per phone). Fixed manufacturing costs total$1,180...
-
Stock Valuation (LO1) Caccamise Company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.8 percent, what is the...
-
Let r(t) = (cos t, sin t, 2t). (a) Find T,N, and B at the point corresponding to t = /2. Evaluate T at t = /2 before finding N and B. (b) Find the equation of the osculating plane at the point...
-
A heat engine has a heat input of 3 Ã 104 Btu/h and a thermal efficiency of 40 percent. Calculate the power it will produce, in hp. Source 3 x 10 Btu/h 40% HE Sink
-
Consider the following social welfare function: 1. Place positive and negative signs above all the terms in the function, illustrating whether they increase or decrease each persons utility. 2. Will...
-
Match the following function for collecting cash by Acme Cleaners with the statements below: a. Authorization b. Custody c. Recordkeeping ________1. The cashier is responsible for funds in the cash...
-
Match the following assets of a small retail store with their related physical controls below. a. Cash b. Merchandise inventory c. Supplies d. Computers ________1. An alarm that signals if unsold...
-
Match the check-writing policies for a small business described below to the following control activities: a. Authorization b. Recording transactions c. Documents and records d. Physical controls e....
-
Obtain the general solution to the equation. dx 8x=3y6 dy The general solution is x(y)= ignoring lost solutions, if any. ,
-
Ryan made the following conjecture: Every even number can be written as the sum of two consecutive integers. Do you agree or disagree? Briefly justify your decision with a counterexample if possible.
-
Cost: $ 5 0 , 0 0 0 Depreciation method: Sum of the year s digits Salvage ( residual ) value: $ 5 , 0 0 0 Estimated useful life ( years ) : 5 Depreciation Schedule -...
Study smarter with the SolutionInn App