Info

Ledger

Trial balance

T account

Income statement

Balance sheet

Stat retained earnings.

Background: Plush Service Corporation (Plush) was founded in 2008 by Judy and Julie Plush. The company repairs espresso machines and grinders for cofee shops and other types of clients Judy and Julie decided to start the compary when they realized it was the perfect way to combine their love of coffee and mechanical ystems. Plush employs a few field technicians and sales people as well as an MB.A, Suzanne Johnson. To date Suzanne has been doing all the accounting for the company. In January 2017, Plush hires you as an accounting intern. 12 3 Required: 4 Suzanne Johnson has just provided you with the attached beginning balances for 2017. Assume this trial balance 15 has been correctly prepared. Plush's year end is December 31st 16 (A) Using the Excel General Journal spreadsheet in this file, record the 2017 transactions listed below AND the necessary year end adjusting journal entries. Label the transactions in numeric sequence corresponding to the numbers below. Each of the transactions below requires a journal entry. Note that there is a debit and credit 17 control total at the top of the general journal so that you can check after each entry to see if you are in balance 18 . Issued an additional 10,000 shares of common stock on January 2. The stock was sold for $80,000, which 91eguals the par value of the stock 20 2. Purchased store equipment for $10,000 cash on January 3 21 3. Provided services for cash of $35,000 on February S 22 4.Provided services on credit for $90,000 on February 10 23 5. Received bill and paid utilities of $15,000 on February 15 24 6. Paid sales salaries of $30,000 on March 1. 25 7. Incurred legal fees of $6,000 on April 10, but did not pay for these services 26 8.Declared and paid dividends to stockholders of $2,000 on April 30 7 9.Collected $25,000 for services to be provided over the coming year on June 30. 28 10. Paid $72,000 for a three-year insurance policy on July 10 with coverage beginning on August 1. 29 11. Paid $1,000 for a three-week equipment rental on September 10 30 12. Collected $10,000 from the February 10 transaction on 31 13. Paid $1,000 of the amount owed for legal fees incurred on April 10 on November 18. October 20. 2 14.Sold land with cost of $100,000 for $120,000 cash on December 1 Sagenne alse provided 33 financial statem.ents you the following information that she thought may be helpful in preparing the year-end 15. As of December 31, Plush has not recorded any insurance expense for the year. The only insurance policy it 34 5 recorded as of December 31 38 advance had been carned by the end of the year 37 providod that nood to be billed to customers and recorded owns s the one purchased in $10 above. 16 Plush depreciates its store equipment at a rate of $8,000 per year. Depreciation expense has not been 17 For the foes collected on June 30 (#9 above), Phish cstimated that 30% of the service fees collected in 8. Pluh received a timesheet from a field sechnician indicating that services amounting to $35,000 had been 19. Plush incurs alaries of $4,000 at the end of the year. The next payroll date is January 2 of the following 3R vear eoe Davroll taxes and withhoMing