I dont know how to solve the Cumulative Comprehension Problem: Echo System Chapters 3 & 4 from the book Fundamental Accounting Principles.
Chapter 3 Cumulative Comprehension Problem: Echo Systems (This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. the Chapter 2 segment has not been completed, the assignment can begin at this point. You need to use the facts presented in Chapter 2. Because of its length, this problem is most easily solved if you use the Working Papers that accompany this book.) Cumulative Comprehension Working Papers Page 229 After the success of its first two months, Mary Graham has decided to continue operating Echo Systems. (The transactions that occurred in these months are described in Chapter 2.) Before proceeding in December, Graham adds these new accounts to the chart of accounts for the ledger: Account Acumulated Depreciation Office Equipment Arounded Depreciation Computer Equipment... Wages Payable 210 Uneamed Computer Services Revenue Depreciation Expense. Office Equipment Depreciation pense Computer Equipment Insurance Expense... Renk Expense. Computer Supplies pense Click here for a description of Table: Cumulative Comprehension Problema Echo Systems Required 1. Prepare journal entries to record each of the following transactions for Echo Systems, Post the entries to the accounts in the ledger. Dec. Paid $2.100 to the Lakeshore Mall for the company's share of mal advertising costs. 3 Paid $1.200 to repair the company's computer. 4 Received $7.500 from Alamo Engineering Co. for the receivable from the prior month 10 Paid Carly Smith forsk days' work at the rate of $200 per day. 14 Notified by Alamo Engineering Co that Echo's bid of $12.000 on a proposed project was accepted. Alamo pald an advance of $3.000. 17 Purchased $2.310 of computer supplies on credit from Abbott Office Products 18 Sent a reminder to Fostek Co to pay the fee for services originally recorded on November & 20 Completed a project for Elite Corporation and received $11.250 cash. 24-28 Took the work off for the holidays 31 Received $5.700 from Fostek Co. on its receivable. 31 Reimbursed Mary Graham's business automobile expenses of 600 kilometres at $1.00 per kilometre. 31 Graham withdrow $3.600 cash from the business Click here for a description of List: Cumulative Comprehension Problem: Echo Systems. 1. 2. Prepare adjusting entries to record the following additional information collected on December 31 2017. Post the entries to the accounts in the ledger. a. The December 31 inventory of computer supplies was $1.440. b. Three months have passed since the annual insurance premium was paid. c. As of the end of the year, Carly Smith has not been paid for four days of work at the rate of $200 per day d. The computer is expected to have a four-year life with no residual value. e. The office equipment is expected to have a three-year life with no residual value. f. Prepaid rent for three of the four months has expired. 3. Prepare an adjusted trial balance as of December 31, 2017 4. Prepare an income statement and statement of changes in equity for the three months ended December 31, 2017 5. Prepare a balance sheet as of December 31, 2017 Chapter 4 Cumulative Comprehension Problem: Echo Systems CHECK FIGURE: 2. Total credits in post-closing trial balance = $155,720 (The first two segments of this comprehensive problem were in Chapters 2 and 3, and the final segment is presented in Chapter 5. If the Chapter 2 and 3 segments have not been completed, the assignment can begin at this point. It is recommended that you use the Working Papers that accompany this book because they reflect the account balances that resulted from posting the entries required in Chapters 2 and 3.) Cumulative Comprehension Working Papers The transactions of Echo Systems for October through December 2017 have been recorded in the problem segments in Chapters 2 and 3, as well as the year-end adjusting entries. Prior to closing the temporary accounts for 2017, the accounting system is modified to include the income Summary account, which is given the number 901. Required 1. Record and post the appropriate closing entries. 2. Prepare a post-closing trial balance. Chapter 3 Cumulative Comprehension Problem: Echo Systems (This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. the Chapter 2 segment has not been completed, the assignment can begin at this point. You need to use the facts presented in Chapter 2. Because of its length, this problem is most easily solved if you use the Working Papers that accompany this book.) Cumulative Comprehension Working Papers Page 229 After the success of its first two months, Mary Graham has decided to continue operating Echo Systems (The transactions that occurred in these months are described in Chapter 2.) Before proceeding in December, Graham adds these new accounts to the chart of accounts for the ledger: Account Aoomulined Depreciation Office Equipment Arounded Depreciation Computer Equipment... 210 Uneamed Computer Services Revenue Depreciation Expense. Office Equipment Depreciation pense Computer Equipment Insurance Expense... Rent Expense Computer Supplies pense Click here for a description of Table: Cumulative Comprehension Problema Echo Systems Required 1. Prepare journal entries to record each of the following transactions for Echo Systems, Post the entries to the accounts in the ledger. Dec 3 Paid $2.100 to the Lakeshore Mall for the company's share of mal advertising costs. 3 Paid $1.200 to repair the company's computer. 4 Received $7.500 from Alamo Engineering Co. for the receivable from the prior month 10 Paid Carly Smith forsk days' work at the rate of $200 per day. 14 Notified by Alamo Engineering Co that Echo's bid of $12.000 on a proposed project was accepted. Alamo paid an advance of $3.000. 17 Purchased $2.310 of computer supplies on credit from Abbott Office Products 18 Sent a reminder to Fostek Co to pay the fee for services originally recorded on November & 20 Completed a project for Elite Corporation and received $11.250 cash. 24-28 Took the wook off for the holidays 31 Received $5.700 from Fostek Co. on its receivable. 31 Reimbursed Mary Graham's business automobille penses of 600 kilometres at $1.00 per kilometre. 31 Graham withdrow $3.600 cash from the business. Click here for a description of List Cumulative Comprehension Problem: Echo Systems. 1. 2. Prepare adjusting entries to record the following additional information collected on December 31 2017. Post the entries to the accounts in the ledger. a. The December 31 inventory of computer supplies was $1.440. b. Three months have passed since the annual insurance premium was paid. c. As of the end of the year, Carly Smith has not been paid for four days of work at the rate of $200 per day. d. The computer is expected to have a four-year life with no residual value
