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Ellen and Daughters Inc., a small service company, keeps its records without the help of an accountant. After much effort, a freshman accounting student prepared
Ellen and Daughters Inc., a small service company, keeps its records without the help of an accountant. After much effort, a freshman accounting student prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2005: You discovered the following data had not been recorded at December 31, 2005: Wages earned by employees not yet paid on December 31, 2005, $11,000. Services performed that had previously been received, $41,000. Ordered $5,000 in computer equipment to be delivered in 2006 and paid when received. Services performed but not billed to client, $4,000. Depreciation expense for 2005, $4,500. The prepaid insurance represents cash paid in advance on October 1. This $108,000 relates to a three-year insurance policy that began on October 1. As of December 31, no expense had yet been recognized in association with this insurance policy. The supplies count on December 31, 2005: reflected $7,500 remaining on hand. Accrued interest for 2005 was $4,000 (interest is current). Prepare ledger accounts with existing balances. Prepare journal entries for transactions a - h and then post to the ledger. JE should go on last page which is blank. Prepare, in proper form with proper dating: the Income Statement for 2005. Prepare the Statement of Retained Earnings in proper form and with proper dating. Prepare a CLASSIFIED Balance Sheet in proper form and with proper dating. Accounts in alphabetical older. You will need to add more accounts. Ellen and Daughters Inc., a small service company, keeps its records without the help of an accountant. After much effort, a freshman accounting student prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2005: You discovered the following data had not been recorded at December 31, 2005: Wages earned by employees not yet paid on December 31, 2005, $11,000. Services performed that had previously been received, $41,000. Ordered $5,000 in computer equipment to be delivered in 2006 and paid when received. Services performed but not billed to client, $4,000. Depreciation expense for 2005, $4,500. The prepaid insurance represents cash paid in advance on October 1. This $108,000 relates to a three-year insurance policy that began on October 1. As of December 31, no expense had yet been recognized in association with this insurance policy. The supplies count on December 31, 2005: reflected $7,500 remaining on hand. Accrued interest for 2005 was $4,000 (interest is current). Prepare ledger accounts with existing balances. Prepare journal entries for transactions a - h and then post to the ledger. JE should go on last page which is blank. Prepare, in proper form with proper dating: the Income Statement for 2005. Prepare the Statement of Retained Earnings in proper form and with proper dating. Prepare a CLASSIFIED Balance Sheet in proper form and with proper dating. Accounts in alphabetical older. You will need to add more accounts
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