Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need please general journal, income statement, balance sheet, and impact on income. 1 The unadjusted trial balance of the Kind Matters Company as of

image text in transcribed

image text in transcribed

I need please general journal, income statement, balance sheet, and impact on income.

1 The unadjusted trial balance of the Kind Matters Company as of December 31, 2021 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the kind Matters Company EBook 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2021. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry. if any. 2) Based on a physical count, supplies on hand total $4.050. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3) The equipment is expected to have a 5-year useful life, and be worth about $10,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation. if any. 4) On December 26, the client paid a $6,600 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry. if any. 5) Kind Matters's employee earns $130 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense. and prepare the necessary adjusting entry, if any. 6) In the second week of December, Kind Matters agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4140. The terms of the initial agreement call for Kind Matters to provide services from December 12, 2021. through January 10, 2022. or 30 days of service. The club agrees to pay Kind Matters $4.140 on January 10, 2022. when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry. if any. Hint Print Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on income In chapter 2, we learned how to prepare journal entries for external transactions: transactions between the company and other entities. In this chapter, we will review the trial balance to see if the balances have remained accurate, or whether they have become inaccurate as a result of internal transactions (ie the use of supplies, or the use of insurance coverage). This question will review the unadjusted trial balance presented in chapter 2, and demonstrate the adjusting entry process used to ensure the accuracy of the general ledger balances prior to the preparation of financial statements General Journal tab - For transactions 1-6, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement, Statement of Owner's Equity, Balance Sheet tabs - The financial statements will display the unadjusted or adjusted balances, based on your selection, Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected and the impact on net income. If an adjustment caused net income to decrease enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown Adjusted Kind Matters Trial Balance December 31, 2021 Account Title Debit Credit Cash $ 3,625 Accounts receivable 2.600 4,050 5,800 31.000 437 6,200 480 8,050 30,000 Supplies Prepaid insurance Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned consulting revenue J. Kennedy Capital J. Kennedy Withdrawals Consulting revenue Rental revenue Depreciation expense - Equipment Salaries expense Insurance expense Rent expense Supplies expense Utilities expense 1.100 10.750 600 437 2,690 200 1,300 1.350 365 Total 54,517 $ 54,517 "General Ledger Income Statement > 1 The unadjusted trial balance of the Kind Matters Company as of December 31, 2021 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the kind Matters Company EBook 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2021. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry. if any. 2) Based on a physical count, supplies on hand total $4.050. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3) The equipment is expected to have a 5-year useful life, and be worth about $10,000 at the end of five years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation. if any. 4) On December 26, the client paid a $6,600 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry. if any. 5) Kind Matters's employee earns $130 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense. and prepare the necessary adjusting entry, if any. 6) In the second week of December, Kind Matters agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $4140. The terms of the initial agreement call for Kind Matters to provide services from December 12, 2021. through January 10, 2022. or 30 days of service. The club agrees to pay Kind Matters $4.140 on January 10, 2022. when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry. if any. Hint Print Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on income In chapter 2, we learned how to prepare journal entries for external transactions: transactions between the company and other entities. In this chapter, we will review the trial balance to see if the balances have remained accurate, or whether they have become inaccurate as a result of internal transactions (ie the use of supplies, or the use of insurance coverage). This question will review the unadjusted trial balance presented in chapter 2, and demonstrate the adjusting entry process used to ensure the accuracy of the general ledger balances prior to the preparation of financial statements General Journal tab - For transactions 1-6, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Trial Balance tab - You may view either the unadjusted or adjusted balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement, Statement of Owner's Equity, Balance Sheet tabs - The financial statements will display the unadjusted or adjusted balances, based on your selection, Impact on Income tab - For each adjustment, indicate the income statement and balance sheet account affected and the impact on net income. If an adjustment caused net income to decrease enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown Adjusted Kind Matters Trial Balance December 31, 2021 Account Title Debit Credit Cash $ 3,625 Accounts receivable 2.600 4,050 5,800 31.000 437 6,200 480 8,050 30,000 Supplies Prepaid insurance Equipment Accumulated depreciation - Equipment Accounts payable Salaries payable Unearned consulting revenue J. Kennedy Capital J. Kennedy Withdrawals Consulting revenue Rental revenue Depreciation expense - Equipment Salaries expense Insurance expense Rent expense Supplies expense Utilities expense 1.100 10.750 600 437 2,690 200 1,300 1.350 365 Total 54,517 $ 54,517 "General Ledger Income Statement >

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

Auditors Guide To IT Auditing Software Demo

Authors: Richard E. Cascarino

2nd Edition

1118147618, 978-1118147610

More Books

Students also viewed these Accounting questions

Question

Dye - sublimation printers are not recommended for text true false

Answered: 1 week ago