Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a . Received $ 2 , 4 1 0 cash on 1 1 from customers on account for recording services completed in December. b .

a. Received $2,410 cash on 11 from customers on account for recording services completed in December.
b. Wrote checks on 12 totaling $4,330 for amounts owed on account at the end of December.
c. Purchased and received supplies on account on 13, at a total cost of $200.
d. Completed $3,700 of recording sessions on 14 that customers had paid for in advance in December.
e. Received $4,950 cash on 15 from customers for recording sessions started and completed in January.
f. Wrote a check on 16 for $4,040 for an amount owed on account.
g. Converted $1,060 of cash equivalents into cash on 17.
h. On 115, completed EFTs for $1,480 for employees' salaries and wages for the first half of January.
i. Received $2,760 cash on 131 from customers for recording sessions to start in February.
Required:
Prepare journal entries for the January transactions. Review the 'General Ledger' and the unadjusted 'Trial Balance' Tabs to see th effect of the transactions on the account balances.
Prepare journal entries for items (j)-(n) from the bank reconciliation.
j. The bank deducted $520 for an NSF check from a customer deposited on January 5.
k. The check written January 6 has not cleared the bank, but the January 2 payment has cleared.
I. The cash received and deposited on January 31 was not processed by the bank until February 1.
m. The bank added $3 cash to the account for interest earned in January.
n. The bank deducted $3 for service charges.
Prepare adjusting journal entries on 131 in 'General Journal' Tab. (these are shown as items 15 to 21).
o. Depreciation for the month is $150.
p. Salaries and wages totaling $1,700 have not yet been recorded for January 16 to 31.
q. Prepaid Rent will be fully used up by March 31.
r. Supplies on hand at January 31 were $600.
s. Received $300 invoice for January electricity charged on account to be paid in February but is not yet recorded.
t. Interest on the promissory note of $64 for January has not yet been recorded or paid.
u. Income tax of $1,000 on January income has not yet been recorded or paid.
Review the adjusted 'Trial Balance' as of January 31.
Prepare an income statement for the period ended January 31 in the 'Income Statement' Tab.
Prepare a bank reconciliation in the 'Bank Reconciliation' Tab.
Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab.
Using the information from the requirements above, complete the 'Analysis' tab.
\table[[Requirement,\table[[General],[Journal]],\table[[General],[Ledger]],Trial Balance,\table[[Income],[Statement]],\table[[Bank],[Reconcilation]],Balance Sheet,Analysis,]]
Using the information from the requirements above, complete the 'Analysis' tab.
\table[[Calculate the current ratio at January 31.],[(Round your answer to 2 decimal places.)],[Current Ratio],[Indicate whether PRS has met its loan covenant that requires a minimum current ratio of 1.2.]]
Calculate the net profit margin at January 31.
(Round your answer to 2 decimal places.)
Net Profit Margin
Indicate whether PRS has achieved its objective of 10 percent.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, James M. Reeve, Philip E. Fess

19th Edition

0538869720, 978-0538869720

More Books

Students also viewed these Accounting questions

Question

What needs do all people have in common?

Answered: 1 week ago

Question

What is the cerebrum?

Answered: 1 week ago

Question

Describe key employee expectations.

Answered: 1 week ago

Question

Describe current business topics and their impact on HRM.

Answered: 1 week ago

Question

Define human resources management (HRM).

Answered: 1 week ago