Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comprehensive Problem 1 Part B Page 150 COMPREHENSIVE PROBLEM 1 PART B (CHAPTERS 1, 3, 4) The purpose of Comprehensive Problem 1 is to review

Comprehensive Problem 1 Part B
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Page 150 COMPREHENSIVE PROBLEM 1 PART B (CHAPTERS 1, 3, 4) The purpose of Comprehensive Problem 1 is to review and reinforce your understanding of the accounting cycle. The number of accounts included in this comprehensive problem has been kept to a minimum so that you can simulate what might happen in actual practice without unnecessary redundancy or excessive time requirements BACKGROUND Sam and Ben considered the first year of operations of Sparkle Pool & Spa Services, Inc. a success. They have asked you to prepare the company's financial statements and perform the year end closing process After all the transactions and adjusting entries from the fiscal year were recorded and posted to the accounts, the September 30, 2020 year-end adjusted trial balance (with accounts listed in alphabetical order) was prepared and is presented on the following page. COMPREHENSIVE PROBLEM 1 REQUIREMENTS Part B (use the September 30, 2020 adjusted trial balance on the following page to complete the below requirements): (3) Prepare, in good form, the 2020 fiscal year financial statements: (a) Income Statement: Check figure: Net Income = $23,410. (b) Statement of Retained Earnings: Check figure: Retained Earnings, September 30, 2020 = $11,410 (c) Balance Sheet: Check figure: Total Assets = $ 87,490. (4) Prepare the year-end closing entries in the general journal (all CJEs are dated September 30). Check figure: Total debits = $448,000. Post the closing entries to Income Summary and Retained Earnings in the general ledger and compute the ending balances of these accounts. DISCOVERY OF ERRORS If your FINANCIAL STATEMENT amounts do not agree with the check figures: (1) Remember that each account is included in only one statement; check each account off as it is used. (2) Calculate the difference between your amount and the check figure and then look for accounts that are: (a) (b) included on a particular statement but should not be, or omitted. DEBIT COMPREHENSIVE PROBLEM 1 PART B (CHAPTERS 1, 3, 4) Page 151 SPARKLE POOL & SPA SERVICES, INC. ADJUSTED TRIAL BALANCE SEPTEMBER 30, 2020 ACCOUNT TITLES CREDIT Accounts Payable $ 5,600 Accounts Receivable $ 11,800 Accumulated Depreciation-Computers 1,260 Accumulated Depreciation-Truck 6,600 Advertising Expense 4.700 Cash 43,000 Common Stock 40,000 Computers 3.780 Depreciation Expense 7,860 Dividends 12.000 Income Taxes Expense 8,800 Insurance Expense 900 Interest Expense 1,680 1,680 Interest Payable Legal Fees Expense 850 24,000 Notes Payable 900 Prepaid Insurance 15,300 Rent Expense Retained Earnings (October 1, 2019) 140,000 Salaries & Wages Expense 3,500 Salaries & Wages Payable 218,000 Service Revenue 2,870 Supplies Supplies Expense 33,000 Truck 1,300 Unearned Service Revenue 4.500 Utilities Expense $ 301.940 $ 301.940 TOTALS 10,000 COMPREHENSIVE PROBLEM 1 PART B (CHAPTERS 1, 3, 4) Page 152 SPARKLE POOL & SPA SERVICES, INC. INCOME STATEMENT For the Morth Ended September 30, 2020 COMPLETE THE DATE LINE COMPLETE THE DATE LINE = SPARKLE POOL & SPA SERVICES, INC. STATEMENT OF RETAINED EARNINGS for the Month Ended September 30, lozo Page 153 COMPREHENSIVE PROBLEM 1 PART B (CHAPTERS 1, 3, 4) SPARKLE POOL & SPA SERVICES, INC. BALANCE SHEET COMPLETE THE DATE LINE - September 30, 2020 Page 154 COMPREHENSIVE PROBLEM I PART B (CHAPTERS 1, 3, 4) GENERAL JOURNAL ACCOUNT TITLES CLOSING ENTRIES DEBIT CREDIT DATE 2020 GENERAL LEDGER T-ACCOUNTS (partial list) Retained Earnings #312 Income Summary #314

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What The Numbers Mean

Authors: David Marshall

13th Edition

1264126743, 9781264126743

More Books

Students also viewed these Accounting questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago