Date Dec 3 3 4 10 14 17 18 20 Transaction Paid $1,500 for advertising on the local radio station Paid $1,200 to repair the company computer Received $3,000 for the final payment on the November 12th billing Paid Bob Smith for 6 days of work Signed a contract to complete $15,000 of computer work for XYZ Co. XYZ paid $4,000 in advance on December 14th Purchased $1,800 of computer supplies on credit Received $5,000 from Y Co for the November 28th billing Received a cash payment of $7,000 from Z Co for work completed in December Took the week off to celebrate Christmas Paid Joseph for 800 km of business mileage at a rate of $.80/km Paid Joseph a $4,000 dividend Billed y Ltd $2,000 for work completed in December 24-28 31 31 31 Additional information: a. Of the $4,000 advance payment received from XYZ CO, $2,500 has been earned b. A count of supplies on December 31 revealed $700 of supplies on hand C. Bob Smith worked for 10 days in December which have not been paid d. A project for T Ltd was completed in December but the $5,000 was not billed Part B Requirements: 1. Prepare a tabular analysis of all the December transactions. Include dates and descriptions to help organize your work. [11 marks] 2. Enter any month-end adjustments (accruals and deferrals) into the table, including dates and descriptions. [14 marks] 3. Prepare an income statement for the month ended December 31, 2020 [10 marks] 4. Prepare a retained earnings statement for the month ended December 31, 2020 [5 marks] 5. Prepare a balance sheet as at December 30, 2021. [20 marks] Date Transaction Nov 1 Joseph invested $80,000 cash, a $30,000 computer system and $15,000 of office furniture in exchange for common shares. 2 Paid 4 months rent in advance for $8,000 3 Purchased $3,000 of computer supplies on credit from ABC Ltd 5 Paid $4,800 cash for a one year liability insurance policy 6 Billed XYZ CO $8,000 for installing a computer system 8 Paid for the computer supplies purchased on November 3rd 10 Hired Bob Smith as a part-time assistant at a rate of $200 per day as needed 12 Billed RST Co for $4,000 for computing services 15 Received $8,000 from XYZ Co for the November 6th billing 17 Paid $1,500 for repairs to computer equipment 20 Paid $3,500 for advertising in the local newspaper 22 Received a partial pa ent from RST Co of $1,000 for the November 12th billing 28 Billed Y Co $5,000 for a computer installation 30 Paid Bob Smith for 7 days of work 30 Paid Joseph Johnson a $3,500 dividend Accounts Computer + Receivabl + Supplies + ASSETS LIABILITIES SHAREHOLDERS' EQUITY Prepaid Prepaid Office Ace. Dep. Computer Acc. Dop. Accounts Wases Unearned Connon Retained Earnings Rent + Insurance + Furniture - Furniture + Equipment - Computer = Payable + Payable + Revenue + Shares +arvice Rer - Tages Exp. - Ins. Exp - Rent Exp. - Adv. Exp - pplies Ex - epair Exp - Dep. Exp. -ileage ex] - Dividends Date Description Cash
