Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ignore GST. Narrations in the journal entries are not required; neither is cross-referencing.- The problem asks for T accounts. You may use either T accounts
Ignore GST. Narrations in the journal entries are not required; neither is cross-referencing.- The problem asks for T accounts. You may use either T accounts or the three-column account form (used, for example, in Assignment Three). Just create one T ledger for each account so that all the postings to that account are in one place (as opposed to creating separate T accounts for JE, AJE, and closing entry postings). To illustrate, here is the Service Revenue T account, complete with postings: Service Revenue 14/3 3,700 28/3 4,200 31/3 200 8,100 31/3 Bal. 8,100 31/3 + Add the following accounts to the chart of accounts: Interest Receivable; Income Taxes Payable; Interest Revenue; and Income Tax Expense. Note that Equipment includes vehicles. For Instruction d., add the following two events: o 8. The bank tells the business that interest revenue of $20 for March will be credited to the company's bank account on 1 April; + o 9. Income taxes are estimated at 30% of pre-tax profit and will be payable in installments over the next few months, starting in April. - For Instruction g., prepare a Statement of Comprehensive Income and a Balance Sheet in the form and format required in this course. You do not have to prepare a separate Statement of Retained Earnings or Statement of Changes in Equity. Add Instruction j.: Prepare a residual analysis, including accounts debited and credited, to explain the AJE required for the income taxes referred to in 9) above. t
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