i am new to accounting and stuck on a question. any help would be appreciated. thank you
Kares Cards SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters 1 and 2.) SP3. Getting ready for the upcoming holiday season is traditionally a busy time for greeting card com- panies, and it was no exception for Kate. The following transactions occurred during the month of October: 1. Hired an assistant at an hourly rate of $10 per hour to help with some of the computer layouts and administrative chores. 2. Supplements her business by teaching a class to aspiring card designers. She charges and receives a total of $450. 3. Delivers greeting cards to several new customers. She bills them a total of $3,500. 4. Pays a utility bill in the amount of $250 that she determines is the business portion of her utility bill. Cambodge Business Publishers f 175 Chapter 3 Acerunt Basis of Accounting 5. Receives an advance deposit of $500 for a new set of cards she is designing for a new customer 7. Determines that the assistant has worked 10 additional hours this month that have not yet been 8. Ordered and receives additional supplies in the amount of $1,000. These were paid for during the month 9. Counts her remaining inventory of supplies at the end of the month and determines the balance to be $300. Don't forget to consider the supplies inventory balance on September 30, from Chapter 2. (Hint: This expense will be a debit to Cost of Goods Sold.) 10. Records the adjusting entries for depreciation and insurance expense for the month. 11. Pays herself a salary of $1.000. 12. Paid monthly rent of $1,200 in cash. 13. Receives her next utility bill during December and determines $85 applies to October's operations. 14. Deciding she needs a little more cash, Kate pays herself a $100 dividend. Required Using the information that you gathered and the general ledger accounts that you prepared through Chapter 2, plus the new information above, complete the following: Journalize the above transactions and adjusting entries. Post the October transactions and adjusting entries. (Use the general ledger accounts prepared in Chapter 2 and add any new accounts that you may need.) Prepare a trial balance as of October 31, 2018. d. Prepare an income statement and a statement of stockholders' equity for the two-month period ending October 31, 2018, and a balance sheet as of October 31, 2018. Prepare the closing entries as of October 31, 2018. f. Prepare a post-closing trial balance. a. b. c. EXTENDING YOUR KNOW REPORTING AND ANALYSIS Kares Cards SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters 1 and 2.) SP3. Getting ready for the upcoming holiday season is traditionally a busy time for greeting card com- panies, and it was no exception for Kate. The following transactions occurred during the month of October: 1. Hired an assistant at an hourly rate of $10 per hour to help with some of the computer layouts and administrative chores. 2. Supplements her business by teaching a class to aspiring card designers. She charges and receives a total of $450. 3. Delivers greeting cards to several new customers. She bills them a total of $3,500. 4. Pays a utility bill in the amount of $250 that she determines is the business portion of her utility bill. Cambodge Business Publishers f 175 Chapter 3 Acerunt Basis of Accounting 5. Receives an advance deposit of $500 for a new set of cards she is designing for a new customer 7. Determines that the assistant has worked 10 additional hours this month that have not yet been 8. Ordered and receives additional supplies in the amount of $1,000. These were paid for during the month 9. Counts her remaining inventory of supplies at the end of the month and determines the balance to be $300. Don't forget to consider the supplies inventory balance on September 30, from Chapter 2. (Hint: This expense will be a debit to Cost of Goods Sold.) 10. Records the adjusting entries for depreciation and insurance expense for the month. 11. Pays herself a salary of $1.000. 12. Paid monthly rent of $1,200 in cash. 13. Receives her next utility bill during December and determines $85 applies to October's operations. 14. Deciding she needs a little more cash, Kate pays herself a $100 dividend. Required Using the information that you gathered and the general ledger accounts that you prepared through Chapter 2, plus the new information above, complete the following: Journalize the above transactions and adjusting entries. Post the October transactions and adjusting entries. (Use the general ledger accounts prepared in Chapter 2 and add any new accounts that you may need.) Prepare a trial balance as of October 31, 2018. d. Prepare an income statement and a statement of stockholders' equity for the two-month period ending October 31, 2018, and a balance sheet as of October 31, 2018. Prepare the closing entries as of October 31, 2018. f. Prepare a post-closing trial balance. a. b. c. EXTENDING YOUR KNOW REPORTING AND ANALYSIS
