Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Carl Davis hired your team to keep the business records of Davis Consulting. Davis Consulting performs systems consulting and has begun selling software. The transactions
Carl Davis hired your team to keep the business records of Davis Consulting. Davis Consulting performs systems consulting and has begun selling software. The transactions are kept using the accrual method of accounting. The company uses the perpetual inventory system to account for software inventory. Davis Consulting completed the following transactions during the first months of X: Jan. Owner contributed $ cash in exchange for capital. Jan. Paid monthly office rent, $ check # Jan. Purchased office furniture on account, $ The furniture should last for five years; salvage value is $ Jan. Purchased office supplies on account, $ Feb. Purchased units software inventory on account, $ plus freightin $ Feb. Paid monthly office rent, $ check # Feb. Paid cash for a computer, $ This equipment is expected to remain in service for five years; salvage value is $ check # Feb. Performed consulting service for a client on account, $ Feb. Hired an administrative assistant to be paid $ on the th day of each month. The secretary begins work immediately. Feb. Paid utilities expenses, $ check # Feb. Received $ in advance for client service to be performed in the future. Mar. Sold software units on account, $ Mar. Prepaid five months office rent, $ check # Mar. Performed service for a client and received cash of $ Mar. Paid $ on account for the office supplies purchased on Jan. check # Mar. Collected $ on account for the consulting services performed on Feb. Mar. Davis withdrew cash of $ Mar. Paid employee salaries, $ check # Apr. Purchased units software inventory on account, $ Apr. Paid employee salaries, $ check # Apr. Paid utilities, $ check # May Sold units software for cash, $ May Paid on account, $ for the office furniture purchased on Jan. check # May Paid employee salaries, $ check # May Collected $ on account for inventory sold on Mar. Jun. Completed a consulting engagement and received cash of $ Jun. Purchased office supplies on account, $ Jun. Consulted with a client for a fee of $ on account. Jun. Paid utilities, $ check # Jun. Paid employee salaries, $ check # Jun. Paid $ on account, check # At June X the business gathers the following information for the adjusting entries: a Four months of prepaid rent expired at the end of June. b Accrue salaries payable as of June days accrued, not paid c Accrued service revenue, $ d Earned $ of the service revenue collected in advance on February e Office supplies on hand totals $ f Depreciation is recorded for the computer months and the furniture months g Physical count of software inventory, units. Requirements: Prepare perpetual inventory records for X for Davis using the LIFO inventory costing method. Note: You must calculate the cost of goods sold on March and May from the information in the inventory schedule. Journalize the transactions explanations are required but not the adjusting entries yet you will prepare adjusting entries in # Post the journal entries to the ledgers showing dates, account numbers, and account balances. Prepare the yearend bank reconciliation using the bank statement below. Journalize AND post any transactions required from the bank reconciliation. Journalize AND post the adjusting entries. Prepare the Adjusted Trial Balance for the months ended June X Prepare the financial statements for Davis Consulting for the months ended June X using the Adjusted Trial Balance. Required financial statements include: a Multistep Income Statement list Service Revenue underneath gross profit and ignore classifying the expenses as selling and administrative b Statement of Owners Equity c Classified Balance Sheet Journalize AND post the closing entries. Prepare a postclosing trial balance. Make sure these figures agree with your balances in your General Ledger. Bank Statement for June X Beginning Balance, January X Deposits and other Credits: Feb. EFT customer Mar. EFT customer Mar. EFT customer May EFT customer Jun. EFT customer Jun. EFT customer Jun. interest Checks and other Debits: Jan. ck# Feb. ck# Feb. ck# Mar. ck# Mar. ck# Mar. ck# Mar. withdrawal Mar. ck# Apr. ck# May ck# May ck# May ck# Jun. ck# Jun. EFT payment to Paper Supplies Company Jun. Bank service charge Ending Balanc
Carl Davis hired your team to keep the business records of Davis Consulting. Davis Consulting performs systems consulting and has begun selling software. The transactions are kept using the accrual method of accounting. The company uses the perpetual inventory system to account for software inventory.
Davis Consulting completed the following transactions during the first months of X:
Jan. Owner contributed $ cash in exchange for capital.
Jan. Paid monthly office rent, $ check #
Jan. Purchased office furniture on account, $ The furniture should last for five years; salvage value is $
Jan. Purchased office supplies on account, $
Feb. Purchased units software inventory on account, $ plus freightin $
Feb. Paid monthly office rent, $ check #
Feb. Paid cash for a computer, $ This equipment is expected to remain in service for five years; salvage value is $ check #
Feb. Performed consulting service for a client on account, $
Feb. Hired an administrative assistant to be paid $ on the th day of each month. The secretary begins work immediately.
Feb. Paid utilities expenses, $ check #
Feb. Received $ in advance for client service to be performed in the future.
Mar. Sold software units on account, $
Mar. Prepaid five months office rent, $ check #
Mar. Performed service for a client and received cash of $
Mar. Paid $ on account for the office supplies purchased on Jan. check #
Mar. Collected $ on account for the consulting services performed on Feb.
Mar. Davis withdrew cash of $
Mar. Paid employee salaries, $ check #
Apr. Purchased units software inventory on account, $
Apr. Paid employee salaries, $ check #
Apr. Paid utilities, $ check #
May Sold units software for cash, $
May Paid on account, $ for the office furniture purchased on Jan. check #
May Paid employee salaries, $ check #
May Collected $ on account for inventory sold on Mar.
Jun. Completed a consulting engagement and received cash of $
Jun. Purchased office supplies on account, $
Jun. Consulted with a client for a fee of $ on account.
Jun. Paid utilities, $ check #
Jun. Paid employee salaries, $ check #
Jun. Paid $ on account, check #
At June X the business gathers the following information for the adjusting entries:
a Four months of prepaid rent expired at the end of June.
b Accrue salaries payable as of June days accrued, not paid
c Accrued service revenue, $
d Earned $ of the service revenue collected in advance on February
e Office supplies on hand totals $
f Depreciation is recorded for the computer months and the furniture months
g Physical count of software inventory, units.
Requirements:
Prepare perpetual inventory records for X for Davis using the LIFO inventory costing method. Note: You must calculate the cost of goods sold on March and May from the information in the inventory schedule.
Journalize the transactions explanations are required but not the adjusting entries yet you will prepare adjusting entries in #
Post the journal entries to the ledgers showing dates, account numbers, and account balances.
Prepare the yearend bank reconciliation using the bank statement below.
Journalize AND post any transactions required from the bank reconciliation.
Journalize AND post the adjusting entries.
Prepare the Adjusted Trial Balance for the months ended June X
Prepare the financial statements for Davis Consulting for the months ended June X using the Adjusted Trial Balance. Required financial statements include:
a Multistep Income Statement list Service Revenue underneath gross profit and ignore classifying the expenses as selling and administrative
b Statement of Owners Equity
c Classified Balance Sheet
Journalize AND post the closing entries.
Prepare a postclosing trial balance. Make sure these figures agree with your balances in your General Ledger.
Bank Statement for June X
Beginning Balance, January X
Deposits and other Credits:
Feb. EFT customer
Mar. EFT customer
Mar. EFT customer
May EFT customer
Jun. EFT customer
Jun. EFT customer
Jun. interest
Checks and other Debits:
Jan. ck#
Feb. ck#
Feb. ck#
Mar. ck#
Mar. ck#
Mar. ck#
Mar. withdrawal
Mar. ck#
Apr. ck#
May ck#
May ck#
May ck#
Jun. ck#
Jun. EFT payment to Paper Supplies Company
Jun. Bank service charge
Ending Balanc
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started