Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Darcy Systems On October 1, 2017, Darcy Zaylo organized a computer service company called Darcy Systems. Darcy is organized as a sole proprietorship and will
Darcy Systems On October 1, 2017, Darcy Zaylo organized a computer service company called Darcy Systems. Darcy is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Zaylo has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of Dec 31, 2-17 The transactions for the first two months have boen recorded and posted. You will only be recording work for December, including the adjusting entries and closing. The beginning balances in the accounts represent the first two months transactions. Required 1. Prepare journal entries to record each of the following transactions for Darcy Systems. Post the entries to the accounts in the ledger Dec. 3 Paid $2,700 to the Seashelt Mall for the company's share of mal advertising costs for December 3 Paid $85 to repair the company's computer 4 Received the balance owing from Reynolds Plumbing Co 10 Paid Chris Douglas for nine days' work at the rate of $240 per day 14 Notified by Reynolds Plumbing Co. that Darcy's bld of $9,000 on a proposed project was accepted. Reynolds paid an advance of $2,500 17 Purchased $1,900 of computer supplies on credit from Morris Supplies. 18 Sent a reminder to Pelletier Food Services to pay the $3,650 originally recorded on November 8 20 Completed a project for Abee Gravel & Sand Co. and received $4,900 cash. 24-28 Took the week off for the holidays 31 Received $1,400 as partial payment from Pelletier Food Services 31 Reimbursed Darcy Zaylo's business automoblle expenses of 1,420 kilometres at $2.05 per kilometre 31 Darcy Zaylo withdrew $1,800 cash from the business 2. Prepare adjusting entries to record the following additional information collected on December 31, 2017. Post the entries to the accounts in the ledger. Dec. 31 a. The December 31 inventory of computer supplies was $545 b. Three months have passed since the annual insurance premium was paid. c. As of the end of the year, Chris Douglas has not been paid for 14 days of d. The computer equipment is expected to have a two-year life with no e. The office equipment is expected to have a five-year life with no f. Prepaid rent for three of the six months has expired. work at the rate of $240 per day. residual value. residual value. 3. Prepare an adjusted trial balance as of December 31, 2017 4. Prepare an income statement and statement of changes in equity for the three months ended December 31, 2017 5. Prepare a balance sheet as of December 31, 2017 6. Record and post the appropriate closing entries. 7. Prepare a post-closing trial balance. GENERAL LEDGER Cash ACCOUNT NO. 101 DATE EXPLANATION PR DEBIT CREDIT BALANCE GENERAL LEDGER Accounts Receivable ACCOUNT NO. 106 DATE EXPLANATION PR DEBIT CREDIT ARI Computer Supplies ACCOUNT NO. 126 DATE EXPLANATION PR DEBIT CREDIT BALANCE Prepaid Insurance ACCOUNT NO. 128 DATE EXPLANATION PRI DEBIT CREDIT BALANCE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started