Question
INTERMEDIATE ACCOUNTING HELP! I need these problems solved or at least how to go about them so I can do it on my own! Showing
INTERMEDIATE ACCOUNTING HELP!
I need these problems solved or at least how to go about them so I can do it on my own! Showing work would be helpful!
Nanko Smith owns an array of pets including dogs, cats, parrots, and hamsters. He has gained a reputation for having extensive knowledge of pet supplies as well as a profound ability to train dogs and hamsters to behave appropriately. (What is appropriate behavior for a hamster???)
Because of Nanko's wide reputation, he decided to open a store that would focus on pet supplies and training. thus "Fido's Pet Supply and Training co." was born in March 2019. Nanko will train dogs and hamsters for clients on an individual fee basis when requested.
Transactions through August 2020 Fido's pet supply and training co. have already been recorded in the general ledger. Nanko has asked your accounting firm to record fido's pet supply and training co. accounting activity for September 2020.
August 31, 2020 general ledger balances
DR CR
Cash DR- $31,125 Accounts receivable DR-4250
Supplies DR- 3625 Prepaid insurance Prepaid rent DR-1850 Equipment DR-13000 Accumulated depreciation CR-3000
Accounts payable CR- 2500 Wages payable CR-1150 Unearned fees CR- 2200 Long-term notes payable CR-0
Common stock CR- 11000 Retained earnings CR- 34000
Total DR-53850 CR- 53850
Fido's had the following transactions during the month of September (not in date order)
a. Fidos received $1,500 from customers in payment on their August accounts.
b. Fido's paid wages of $3,150 to the retail specialists. This includes the amount owed for wages at the beginning of September.
c. The company purchased a new POS (Point of Sale) system on September 1, 2020 from Retail-R-Us for $9,900. Fid made a $1,500 cash down payment and then signed a fifteen-month, 10% long-term note for the remaining balance.
d. Fidos paid a $15,000 insurance premium for a one-year insurance policy covering liability, theft, and fire. The payment is for insurance coverage from September 1, 2020 to August 31, 2021.
e. Fidos purchased $6,000 worth of supplies during the year. $2,000 was paid in cash and the remainder was purchased on account. Record the purchase in the Supplies Expense account.
f. Fido's paid $1,950 to rent retail space (record as an expense).
g. Fid aid $2,070 on its August accounts.
h. Nanko served as a trainer for four clients and charged $4,800. The Company received $2,000 cash and the remainder to be collected in October.
i. Fido's paid cash dividends to shareholders totaling $2,500.
Instructions
1. Prepare the Journal entry for each transaction (a i) in the journal (Journal tab of the Working Papers). The first transaction is journalized and posted for you.
2. Post the journalized transactions to the general ledger (T-accounts), identifying the transactions using their respective letters a. thru i. (Ledger tab of the Working Papers). Transaction a. has been posted.
3. After computing balances in the ledger, prepare a trial balance as of September 30, 2020 (Trial Balances & Statements tab of the Working Papers). Column balances should equal $67,830.
4. Using the adjustment data below, prepare adjusting entries (Journal tab of the Working Papers).
j. The rental payment in f covered rent for August, September, and October. Only two months have expired. The remaining amount should be recorded as prepaid rent.
k. at the end of September, Fido's had performed $7,200 of pet training which had not been billed to clients or recorded yet.
l. During September, Nanko completed half of the training that clients had paid for by the end of August. As result, Unearned Fees should be reduced.
m. Unpaid wages as of September 30, 2020 were $2,500.
n. On septemeber 30, fido's owed good dogs plus $800 in royalties for use of their training manuals. Accrue these royalties as training expense.
o. Receied a bill from water works for Fido's monthly water usage. the bill for September totaled $350
p. Depreciation on equipment is $1,200 for September
q. One month interest should be accrued on the note in transaction "C"
r. The insurance premium in transaction "D" was made on September 1 and covers the one-year period ending August 31, 2021. Adjust the insurance account to properly reflect the amount of insurance that has expired.
s. Supplies on hand at September 30 totaled $4,000.
5. Post the adjusting entries to the general ledger (Ledger tab of the Working Papers) and enter the adjusted balances in each account. Prepare an adjusted trial balance as of September 30, 2020 (Trial Balances & Statements tab of the Working Papers).
6. Prepare an Income Statement, Statement of Retained Earnings, and Balance Sheet for the month ended September 30, 2020 (Trial Balances & Statements tab of the Working Papers). Use proper headings, $ signs, underlines, and other formats based on the examples in the book or handouts. Be sure to include a subtotal for current assets and current liabilities. The ending balance in Retained Earnings should be $29,505.
7. Prepare closing entries (Journal tab of the Working Papers) and post them to the general ledger (Ledger tab of the Working Papers). Show ending balances in all ledger accounts.
8. Prepare a post-closing trial balance based on the ending balances in the T- accounts (Trial Balances & Statements tab of the Working Papers).
9. Celebrate that you have finished!
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