Alan R. Bard formed a corporation named Bard Associates, Inc. on January 1, 2020. Its post-closing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Alan R. Bard formed a corporation named Bard Associates, Inc. on January 1, 2020. Its post-closing trial balance as of December 31, 2020 is as follows: Dr Cr Cash 5,505.00 36,233.00 2,035.00 10,000.00 Accounts receivable Office supplies Prepaid insurance Federal tax refund receivable Building Accumulated depreciation-building Land 46.00 180,000.00 $ 4,423.00 30,000.00 Accounts payable Loan payable Common stock Retained earnings 7,219.00 100,000.00 51,428.00 100,749.00 $263.819.00 $ 263.819.00 An analysis of the corporation's checking account for 2021 shows the following: Balance, January 1, 2021 Receipts: Collections from customers Federal tax refund $ 5,505.00 $ 593,115.00 46.00 593.161.00 598.666.00 Disbursements: Payment of bank loan Telephone bills Utility bills Advertising and promotion Office supplies Interest on bank loan Salaries to employees Salary to Alan R. Bard 60,000.00 47,206.00 28,998.00 119,338.00 48,875.00 6,600.00 141,000.00 100,000.00 14,400.00 26,014.00 Estimated federal income tax Payroll taxes 592.431.00 Balance, December 31, 2021 24 6,235.00 The corporation provides market survey services to small business clients. It is not a "qualified personal service corporation" as defined in Regulation $1.441-3(c). It uses the accrual basis of accounting. The collections from customers in 2021 includes $36,233.00 from 2020 receivables. The bank loan will become due and payable on January 5, 2024. The land and building, nonresidential office space, were placed in service in January 2020. An insurance premium of $15,000.00 was paid in early 2020 for a general business policy covering the three-year period from January 1, 2020 to December 31, 2022. Any assets of the business not reflected in the trial balance have been fully depreciated and therefore have a zero basis. The January 1, 2021 receivables were for services rendered. The payables were for office supplies ($1,829.00), telephone expense ($2,114.00), and utilities expense ($3,276.00). The estimated federal income tax of $14,400 was paid in four equal installments of $3,600 on March 15, 2021, June 15, 2021, September 15, 2021, and December 15, 2021. On December 31, 2021, the corporation had accounts receivable of $38,194.00, office supplies inventory of $3,112.00, and accounts payable of $7,914.00 for telephone ($3,007.00), office supplies ($2,011.00), and utilities expense ($2,896.00). Other than the accrued federal income tax payable, which will have to be calculated, the corporation had no other accrued but unpaid expenses. Required: 1. Use the information above to create a pre-closing adjusted trial balance for Bard Associates, Inc Alan R. Bard formed a corporation named Bard Associates, Inc. on January 1, 2020. Its post-closing trial balance as of December 31, 2020 is as follows: Dr Cr Cash 5,505.00 36,233.00 2,035.00 10,000.00 Accounts receivable Office supplies Prepaid insurance Federal tax refund receivable Building Accumulated depreciation-building Land 46.00 180,000.00 $ 4,423.00 30,000.00 Accounts payable Loan payable Common stock Retained earnings 7,219.00 100,000.00 51,428.00 100,749.00 $263.819.00 $ 263.819.00 An analysis of the corporation's checking account for 2021 shows the following: Balance, January 1, 2021 Receipts: Collections from customers Federal tax refund $ 5,505.00 $ 593,115.00 46.00 593.161.00 598.666.00 Disbursements: Payment of bank loan Telephone bills Utility bills Advertising and promotion Office supplies Interest on bank loan Salaries to employees Salary to Alan R. Bard 60,000.00 47,206.00 28,998.00 119,338.00 48,875.00 6,600.00 141,000.00 100,000.00 14,400.00 26,014.00 Estimated federal income tax Payroll taxes 592.431.00 Balance, December 31, 2021 24 6,235.00 The corporation provides market survey services to small business clients. It is not a "qualified personal service corporation" as defined in Regulation $1.441-3(c). It uses the accrual basis of accounting. The collections from customers in 2021 includes $36,233.00 from 2020 receivables. The bank loan will become due and payable on January 5, 2024. The land and building, nonresidential office space, were placed in service in January 2020. An insurance premium of $15,000.00 was paid in early 2020 for a general business policy covering the three-year period from January 1, 2020 to December 31, 2022. Any assets of the business not reflected in the trial balance have been fully depreciated and therefore have a zero basis. The January 1, 2021 receivables were for services rendered. The payables were for office supplies ($1,829.00), telephone expense ($2,114.00), and utilities expense ($3,276.00). The estimated federal income tax of $14,400 was paid in four equal installments of $3,600 on March 15, 2021, June 15, 2021, September 15, 2021, and December 15, 2021. On December 31, 2021, the corporation had accounts receivable of $38,194.00, office supplies inventory of $3,112.00, and accounts payable of $7,914.00 for telephone ($3,007.00), office supplies ($2,011.00), and utilities expense ($2,896.00). Other than the accrued federal income tax payable, which will have to be calculated, the corporation had no other accrued but unpaid expenses. Required: 1. Use the information above to create a pre-closing adjusted trial balance for Bard Associates, Inc
Expert Answer:
Answer rating: 100% (QA)
Answer Pre closing adjust trial balance Account Debit Credit Working Cash 8635 Account Receivable 38... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
As of December 31 of the current year, Alexander Company has prepared the following information regarding its liabilities and other obligations: Notes payable, of which $27,000 will be repaid within...
-
The condensed balance sheets as of December 31 for Rice and Associates and Rachel Excavation are as follows: As of December 31, the market values of Rachels inventories and property, plant, and...
-
The unadjusted trial balance as of December 31, 2013, for the Bagley Consulting Company appears below. December 31 is the companys fiscal year-end. Required: 1. Enter the account balances in...
-
Pohle Designs has a department that makes high-quality leather cases for iPads. Consider the following data for a recent month: Budget Formula per Unit Various Levels of Output 10.000 1.000 12000...
-
1. In its opinion, the court pointed out that the duty to act in good faith does not apply to lenders seeking payment on demand notes. Why not? 2. If National City had demanded payment of the line...
-
A process produces batches of a chemical whose impurity concentrations follow a normal distribution with a variance of 1.75. A random sample of 20 of these batches is chosen. Find the probability...
-
The following information is from the June 30, 20x7, post-closing trial balance of Kissell Hardware Corporation. Required 1. From the information provided, prepare a classified balance sheet for...
-
Ritter Corporations accountants prepared the following financial statements for year-end 2012: RITTER CORPORATION Income Statement 2012 Revenue ..............................$750 Expenses...
-
In 200 - 250 words, explain why diversification is a wise strategy for the investor. Given the benefits of diversification, why shouldn't managers acquire firms in different industries to diversify a...
-
Denise Lopez, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic...
-
Who was Marie Tagliofil and what did she contribute to the To" century Romantic era Of ballet? (Video. Romantic Era- Marie Taglioni 1804-1884) What was ballet dancer Anna Pavlova known for? How has...
-
When looking at behavioral finance, how does things like "mental accounting", "confirmation bias", and "illusion of control" effect decisions?
-
The rear-view mirror market is currently very weak because of the slumping automobile industry. This led Gasp inc. management to reduce the price of rear-view mirrors from $40 to $30 (see Appendix 2...
-
What is the difference between sunk cost and opportunity cost?
-
nd Corp borrowed $ 6 0 , 0 0 0 on November 1 , 2 0 2 0 by signing a $ 6 1 , 3 5 0 , 3 - month, zero interest bearing note. Strand is a calendar y / end . REQUIRED: prepare the entries for 1 1 / 1 / 2...
-
How can the principles of strategic narrative construction be leveraged to create compelling business storytelling for brand narratives and corporate communications ?
-
Daniel's wife calls him and suggests that he pick up a couple of movies and some pizza for some Friday night entertainment with the kids which he agrees to do. On his way home, he picks up the pizza a
-
Comptech Ltd is a manufacturer of optical equipment. In September 2019, Ed Thompson the Chief Research Officer, attended a conference in Switzerland that focused on optical developments for the 21st...
-
Victoria Company has investments in equity securities classified as trading and available for sale. At the beginning of the year, the aggregate market value of each portfolio exceeded its cost....
-
What factors should a company consider in estimating the useful life of an intangible?
-
Jane Dough was a teller in a large northeastern bank. She was single and approaching age 30, and she considered herself an honest and upright citizen. After considering what she might do to build a...
-
When Yahoo! Inc. reported in early 2004 that its first quarter earnings had doubled from the previous year, its stock price jumped 10 percent to $53 per share. At the same time, the company announced...
-
On Tuesday, January 19, 1988, IBM reported greatly increased earnings for the fourth quarter of 1987. Despite this reported gain in earnings, the price of IBMs stock on the New York Stock Exchange...
-
Inventory Errors} Haywood Inc. reported the following information for 2018: A physical count of inventory at the end of the year showed that ending inventory was actually \(\$ 65,000\)....
Study smarter with the SolutionInn App