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Beta Company Balance Sheet At December 31, 2008 Assets Liabilities and Shareholder's equity Cash 50,000 AP 17500 A/R 26500 Common Stock 48600 Pre-paid rent 3,600
Beta Company | |||||||||
Balance Sheet | |||||||||
At December 31, 2008 | |||||||||
Assets | Liabilities and Shareholder's equity | ||||||||
Cash | 50,000 | AP | 17500 | ||||||
A/R | 26500 | Common Stock | 48600 | ||||||
Pre-paid rent | 3,600 | Retained Earnings | 24500 | ||||||
Land | 10500 | ||||||||
Totals | 90,600 | 90600 | |||||||
The following accounting events apply to Beta's 2009 fiscal year | |||||||||
1-Jan | Beta purchased a computer that cost $18,000 for cash. The computer had no salvage value and a 3 year useful life | ||||||||
1-Mar | The company borrowed $20,000 by issuing a two-year note at 12% | ||||||||
1-May | The company paid $6,000 cash in advance for a six-month lease starting on July 1 for office space. | ||||||||
1-Jun | The company declared and paid dividends of $2,000 to the owners | ||||||||
1-Jul | The company purchased land that cost $15,000 cash. | ||||||||
1-Aug | Beta received $13,500 cash in advance for 12 months of service to be performed monthly for the next year, beginning on receipt of payment | ||||||||
1-Sep | Beta sold a parcel of land for $13,000, its original cost of the land. | ||||||||
1-Oct | Beta purchased $1,300 of supplies on account | ||||||||
1-Nov | Beta purchased short-term investments for $10,000 cash. The investments earn a fixed rate of 5% per year | ||||||||
31-Dec | The company earned service revenue on account during the year that amounted to $50,000 | ||||||||
31-Dec | Cash collections from AR amounted to $46,000 | ||||||||
31-Dec | The company incurred other operating expenses on account during the year that amounted to $5,850 | ||||||||
Additional information follows: | |||||||||
Salaries that had been earned by the sales staff but not yet paid amounted to $2,00 | |||||||||
Supplies on hand at the end of the period totaled $200 | |||||||||
The beginning balance of $3,600 in prepaid rent was completely used up by the end of the year. | |||||||||
Post the journal entries directly to T-accounts, make the appropriate adjustments, prepare an adjusted trial balance, and prepare the financial statements (all four). Then prepare the closing entries and the post closing trial balance |
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