Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do post adjusting entries to the ledge? Invested $150,000 to start a consulting practice titled Redmon Consulting. Paid $7,200 for 2-year renter's insurance policy.

image text in transcribedHow do post adjusting entries to the ledge?
Invested $150,000 to start a consulting practice titled Redmon Consulting. Paid $7,200 for 2-year renter's insurance policy. Paid cash for Dell computer, $1,700. This equipment is expected to remain in service for five years and be worth $200 at the end of that time. Purchased office furniture on account, $5,000. The furniture should last for five years and be worth $1,000 at the end of that time. Purchased supplies on account, $750. Performed consulting service for a client on account, $3,500. Paid utility expense, $175.Performed service for a client and received cash of $2,800. Received $1,200 in advance for client service to be performed evenly over the next 30 days. 22 Hired a secretary to be paid $3,000 on the 20^th day of each month. The secretary begins work immediately. Paid $350 on account. Collected $800 on account. Withdrew $2,000 for personal use. Paid monthly office rent, $750. Prepare journal entries for the above transaction in the journal of Redmon Consulting. Create accounts as necessary. Post the journal entries to the ledger. Prepare a trial balance on December 31, 2015. Redmon gathers the following information for adjusting entries on December 31: Accrued service revenue, $1,200. Earned a portion of the service revenue collected on December 22. Supplies on hand, $75. Both the equipment and the computer need to be depreciated for the full month. Record the salary the secretary has earned since being hired. Record expiration of prepaid insurance. Required Prepare adjusting entries for the above transactions. Post these entries to the ledger. Prepare an adjusted trial balance, an income statement, a statement of owner's equity and a balance sheet as of/ on December 31, 2015. prepare closing entries at December 31 2015 and post to the ledger. Prepare a post-closing balance on December 31,2015. write a letter to the CEO explaining the current financial position of the company

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

Students also viewed these Accounting questions

Question

T F It is normal for people to hallucinate nightly. (p. 425)

Answered: 1 week ago

Question

What are some of the possible scenes from our future?

Answered: 1 week ago