ACCT122 - Introductory Financial Accounting I

Assignment #2

Chapter 3 Name:

V146 Student Number:

1.	Estevan Services prepared a trial balance at its year-end date, October 31, 2023. Make the required adjusting journal entries, basedupon the following additional information. Show your calculations in the 'explanation' line. Round your answers to the nearest dollar. (20 marks)
40 marks

	Estevan Services
October 31, 2023
		Dr	Cr
101	Cash	$ 9,000	-
110	Accounts Receivable	$ -	-
112	Notes Receivable	$ 11,300	-
113	Interest Receivable	$ -	-
114	Supplies	$ 7,400	-
124	Prepaid Insurance	$ 1,600	-
125	Prepaid Rent	$ 8,100	-
130	Equipment	$ 67,900	-
131	Accumulated Depreciation, Equipment	$ -	-
160	Vehicles	$ 67,900	-
161	Accumulated Depreciation, Vehicles	$ -	20,400
210	Accounts Payable	$ -	2,800
215	Wages Payable	$ -	-
220	Unearned Revenue	$ -	7,100
300	Barbara Maxwell, Capital	$ -	184,487
310	Barbara Maxwell, Withdrawals	$ 104,100	-
400	Service Revenue	$ -	1,231,500
450	Interest Revenue	$ -	82,000
610	Advertising Expense	$ 15,800	-
630	Depreciation Expense, Vehicles	$ -	-
631	Depreciation Expense, Equipment	$ -	-
640	Insurance Expense	$ -	-
660	Rent Expense	$ 49,800	-
665	Supplies Expense	$ -	-
670	Utilities Expense	$ 12,700	-
680	Wages Expense	$ 1,172,687	-
		$ 1,528,287	$ 1,528,287

1	Estevan Services is open 7 days a week. Thisyear, October 31,2023, falls on a Tuesday. The weekly pay periodends on Saturdays. If the dailycost of payroll is $1,067, calculate the adjusting entry for the year-end that would be added to the wages of $1,172,687.
2	Estevan Services purchased Equipment during the year for$67,900 at the start of November. The asset has an estimated life of 9 years.
3	The company loaned $11,300 to a customer on November 1, 2022, at an interest rate of 11%. No payment of interest or principal has happened as of year-end.
4	At the beginning of May, Estevan Services signed a 12-year rental agreement with WVS Property Management Company worth$8,100 for a building for the business. They paidfor the entire rental agreement up-front. No adjustment has been made yet for any rent expense.
5	The company needsto record $2,969of depreciation on its Vehicles.
6	During the fiscalyear at the beginning of the monthof May, the company purchased insurance, as recorded in Prepaid Insurance. No adjustment happened all year.
7	The company checkedthe unused supplies in the storeroom and discovered $2,788 remained.
8	In July, the company entered into a contract to provide services for a customer. The customer paid $7,100. At year-end, $1,010was unearned.

2.	Once finished with the journal entries, prepare an Adjusted Trial Balance for Estevan Services. Do notprepare a general ledger. (9 marks)

3.	From the Adjusted TrialBalance, prepare the Income Statement, Statement of Changes in Equity, and Balance Sheet for the company at the year-end. (11 marks)