Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am extremely stuck . I just need help with the entries up until the trial balance . ACC 202 ACC Cyde set This is
I am extremely stuck . I just need help with the entries up until the trial balance .
ACC 202 ACC Cyde set This is to be prepared using pencil only on lined or graph paper. Turn in in class on the due date in Canvas. Notable Service's annual reporting period ends 12/31. The trial balance at year end 12/31/2020 follows: Transactions during 2021: a. Issued 4,000 additional shares of common stock for cash at \$1 per share on 1/2/2021. b. Earned $190,000 in service revenues for 2021.$47,000 on account and the remainder was paid in cash. c. $17,000 cash was paid for land. d. Purchased another truck with 524,000cash. e. Purchased $21,000 supplies on account. f. On 6/30/2021, $20,000 cash was borrowed on a four-year 105 note payable. g. Incurred $110,000 in miscellaneous expenses for 2020,$20,000 on credit and the rest paid in cash. h. Collected $34,000 owned on account. i. Paid $36,000 towards accounts payable. j. Signed a $27,000 one-year service contract for work to begin and be billed on 2/1/2022. k. Declared and paid $15,000 in cash dividends for 2021 . Adjusting entries: a. Interest accrued on the notes payable in step f. b. $4,000 of bad debt was written off during the year. c. $15,000 in wages earned but will not be paid until 1/3/2022 d. $5,000 in supplies remained on 12/31/2021. e. $6,000 depreciation on equipment for 2021 . f. $8,000 in income taxes for 2021 will be paid in 2022 . g. $3,000 of the A/R is estimated to be uncollectable. Required: 1. Set up T-accounts for the trial balonce accounts and enter beginning balances. 2. Prepare journal entries for the 2021 transactions and post them to the ledger. 3. Prepare and post the adjusting entries. 4. Prepare an adjusted trial balance 5. Prepare the income statement, balance sheet, statement of cash flows, and statement of stockholder's equity for the year 2021. 6. Journalize and post the closing entries. 7. Compute the following ratios for 2021 and briefly explain what they suezest about the company (round to 2 decimals). a. Current ratio b. Net profit margin c. Total asset turnover Check numbers: Adjusted trial balance total debits =$400,000 Total liabilities and equity should equal $173,000 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