Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I desperatly need help with the T Chart and the Trial Balance Fred Flintstone, along with Barney Rubble, runs a Winter Snow Removal company. Wilma

I desperatly need help with the T Chart and the Trial Balance

Fred Flintstone, along with Barney Rubble, runs a Winter Snow Removal company. Wilma Flintstone is the office manager for Yabba-Dabba-Do Snow Removal. January will be the first official month that Yabba-Dabba-Do Snow Removal Services begins keeping full accounting records (note that the business was actually formed prior to January 1). Wilma learns quickly that she doesnt have the education to maintain the accounting records for Yabba-Dabba-Do Snow Removal Services. As a result, she hired the services of a local CPA Firm, Bedrock CPA, Inc., and discovered she will pay a junior associate, $200 per hour to maintain the accounting records following Generally Accepted Accounting Principles. Below are the transactions for the month of January 2022. Wilma has provided these transactions to Bedrock CPA. You are the junior associate at Bedrock CPA responsible for journalizing all transactions, posting to the Ledger, and preparing the Trial Balance and Financial Statements for Yabba-Dabba-Do Snow Removal. The following beginning balances exist as of January 1, 2022: Common Stock: $50,000; Note Payable: $159,000; Building: $150,000; Land: $9,000; Cash: $50,000. Please use the normal balances to determine if the balance is a debit or credit balance. Round all figures to 2 decimal places. Transactions for Yabba-Dabba-Do Snow Removal Services 01/1/2022 (1) Fred borrowed $35,000 from Bank of Bedrock under a 90-day note payable with 7% interest rate. Interest will be paid at the end of the 90 days. (Hint, Interest will not be recorded until later. Only record the loan of $35,000 at this date) 01/1/2022 (2) Received cash from first client, Brad Stone-Pitt, as a payment towards an uncompleted job. Mr. StonePitt paid $1,500 for snow removal services for the months of January, February and March. 01/1/2022 (3) Paid $19,020 in advance for 1 years worth of office furniture and equipment rental. 01/1/2022 (4) Paid annual property Insurance bill for $4,000. The property insurance bill is for the period of January 1, 2022 December 31, 2022. 01/10/2022 (5) Purchased $1,500 of office supplies (staplers, rock tablets, chisels, etc.) on account. 01/14/2022 (6) Purchased snow equipment for $9,000 with a note payable from John Deere Rock. Since Yabba-DabbaDo Snow Removal is a new client, Fred was required to put a down payment of 10% and the remainder will be financed over 12 months at a 5% interest rate. 01/14/2022 (7a) Accrued $7,000 in salaries for the period 01/01 - 01/14. Assume no deductions from employee earnings other than taxes. (7b) Recorded payroll tax expense. Use a 20% Federal income tax rate and 5.75% state income tax rate for withholding, and 5.4% state unemployment tax rate. 01/20/2022 (8) Received a $90 electric bill, which will be paid Feb 15th . 01/21/2022 (9) Performed snow removal services at multiple locations for a VERY large client, J. Sarge Rock Community College, totaling $10,000. Received $3,000 in payment. Will receive the balance within 30 days. 01/21/2022 (10) Paid amounts due to employees accrued in item (7) by electronic funds transfer to employee bank accounts. 01/21/2022 (11) Fred received an inheritance and invested $30,000 of his personal funds into the company in exchange for common stock. 01/24/2022 (12) Performed $250 of snow removal for Pebbles Hair Salon, but wont be paid for a week or so. 01/28/2022 (13) Received and paid $135 phone and internet bill. 01/28/2022 (14) Received $250 payment from Pebbles Hair Salon. Requirements: Please complete steps 1 - 4 below using the Part I Excel template provided in Canvas. 1. Write the journal entry for each transaction above including a description for THE MONTH OF JANUARY. 2. Post the journal entries to T-Accounts and label the journal entries with appropriate numbers 3. Balance the T-accounts after the above entries are posted. 4. Please prepare an unadjusted Trial Balance FOR THE MONTH OF JANUARY. If the instructions do not provide an accounts beginning balance, please assume that the beginning balance for that account is $0.

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

Recommended Textbook for

Managerial Accounting

Authors: Unknown Author

1st Edition

007723023X, 978-0077230234

More Books

Students also viewed these Accounting questions