CHAPTER 3 Adjusting Accounts for Financial Statements Required Use the information in the trial balance to prepare: a. The income statement for the year ended December 31, 2017. b. The statement of changes in equity for the year ended December 31, 2017, assuming that em the owner made additional investments of $16,000 during the year c. The balance sheet as of December 31, 2017 Analysis Component: The owner, John Conroe, is very pleased with the change in the business's financial position. Specifically, he noted that his equity increased. "My banker told me that as long as equity is in creasing, mg business is doing great." Comment Problem 3-14A Journalizing, posting, adjusted trial balance, adjusting entries (monthly), financlal statements L04,5,6,7 CHECK FIGURES: 3. Cash balanoe, Aug. 31, 2017 $4,600;4. Dr $19,100: 6.Dr $19,524; 7. Profit $1,376 On August 1, 2017, Delanie Tugut began a tour compang in the Northwest Territories called Tugut Arctic Tours. The following occurred during the first month of operations Aug. 1 Purchased office funiture on account: $5,200 1 Delanie Tugut inwested $7,000 cash into her new business. 2 Collected $3,900 in advance for a three-week guided carlbou hunt beginning the last week of August 3 Paid $6,000 for six months' rent for office space effective August 1. 4 Received $3,000 for a fourday northern lights viewing tour just completed. 7 Pakd $1,500 for hobel expenses regarding the August 4 tour 15 Delanie withdrew cash of $500 for personal use 22 Met with a Japanese tour guide to discuss a $150,000 tour contract 31 Paid wages of $1.300. Required 1. Prepare general journal entries to record the August transactions 2. Set up the following T-accounts: Cash (101); Prepaid Rent (131); Office Furniture (161), Accur lated Depreciation, Office Furniture (162), Accounts Payable (201); Unearned Revenue (233); Delanie Tugut, Capital (301); Delanle Tugut, Withdrawals (302); Revenue (401); Depreciation Esx- Office Furniture (602); Wages Expense (623); Rent Expense (640); Telephone Expense pense, (688); and Hotel Expenses (696). 3. Post the entries to the accounts; calculate the ending balance in each account. 4. Prepare an unadjusted trial balance at August 31, 2017. s. Use the following information to prepare and post adjusting entries on August 31: a. The office furniture has an estimated life of four years and a $208 residual value. b. Two-thirds of the August 2 advance has been earned. e. One month of the Prepaid Rent has been used. d. The August telephone bill was not received as of August 31 but amounted to $320. 6. Prepare an adjusted trial balance. 7. Prepare an income statement, a statement of changes in equity, and a balance sheet Analysls Compon equal to revenues was received during the period in which the revenues were ent: When a company shows revenue on its income statement, does this mean that cas reported? CHAPTER 3 Adjusting Accounts for Financial Statements Required Use the information in the trial balance to prepare: a. The income statement for the year ended December 31, 2017. b. The statement of changes in equity for the year ended December 31, 2017, assuming that em the owner made additional investments of $16,000 during the year c. The balance sheet as of December 31, 2017 Analysis Component: The owner, John Conroe, is very pleased with the change in the business's financial position. Specifically, he noted that his equity increased. "My banker told me that as long as equity is in creasing, mg business is doing great." Comment Problem 3-14A Journalizing, posting, adjusted trial balance, adjusting entries (monthly), financlal statements L04,5,6,7 CHECK FIGURES: 3. Cash balanoe, Aug. 31, 2017 $4,600;4. Dr $19,100: 6.Dr $19,524; 7. Profit $1,376 On August 1, 2017, Delanie Tugut began a tour compang in the Northwest Territories called Tugut Arctic Tours. The following occurred during the first month of operations Aug. 1 Purchased office funiture on account: $5,200 1 Delanie Tugut inwested $7,000 cash into her new business. 2 Collected $3,900 in advance for a three-week guided carlbou hunt beginning the last week of August 3 Paid $6,000 for six months' rent for office space effective August 1. 4 Received $3,000 for a fourday northern lights viewing tour just completed. 7 Pakd $1,500 for hobel expenses regarding the August 4 tour 15 Delanie withdrew cash of $500 for personal use 22 Met with a Japanese tour guide to discuss a $150,000 tour contract 31 Paid wages of $1.300. Required 1. Prepare general journal entries to record the August transactions 2. Set up the following T-accounts: Cash (101); Prepaid Rent (131); Office Furniture (161), Accur lated Depreciation, Office Furniture (162), Accounts Payable (201); Unearned Revenue (233); Delanie Tugut, Capital (301); Delanle Tugut, Withdrawals (302); Revenue (401); Depreciation Esx- Office Furniture (602); Wages Expense (623); Rent Expense (640); Telephone Expense pense, (688); and Hotel Expenses (696). 3. Post the entries to the accounts; calculate the ending balance in each account. 4. Prepare an unadjusted trial balance at August 31, 2017. s. Use the following information to prepare and post adjusting entries on August 31: a. The office furniture has an estimated life of four years and a $208 residual value. b. Two-thirds of the August 2 advance has been earned. e. One month of the Prepaid Rent has been used. d. The August telephone bill was not received as of August 31 but amounted to $320. 6. Prepare an adjusted trial balance. 7. Prepare an income statement, a statement of changes in equity, and a balance sheet Analysls Compon equal to revenues was received during the period in which the revenues were ent: When a company shows revenue on its income statement, does this mean that cas reported