Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

journal entry for 1, 7, and 9, 10 ACC Company, Inc. Balance Sheet 12/31/19 Assets: Current Assets Cash Accounts Receivable Prepaid Expenses Total Current Assets

image text in transcribed
image text in transcribed
journal entry for 1, 7, and 9, 10
ACC Company, Inc. Balance Sheet 12/31/19 Assets: Current Assets Cash Accounts Receivable Prepaid Expenses Total Current Assets $ 3,000.00 1,250.00 100.00 S 4,350.00 $ Non-Current Assets: Property, Plant, and Equipment Land Buildings Equipment Accumulated Depreciation Total Property, plant, and Equipment Total Assets 10,000.00 25,000.00 15,000.00 (12.000.00) $ $ $ 38,000.00 42,350.00 $ Liabilities: Current Liabilities Accounts Payable Accrued Expense Salary and Wages Payable Notes Payable Unearned Revenue Total Liabilities 100.00 150.00 $ 1,500.00 $ 1,750.00 Shareholder's Equity Common Stock - $1 par (See Note Below) Retained Earnings Total Equity Total Liabilities and Equity $ $ 15,000.00 25,600.00 $ $ 40,600.00 42,350.00 Transactions during January 2020: - 1. On January 2, 2020, ACC executed a 3 month-6% promissory note for $10,000.00 in favor of its bank, Cheatem Trust Company, Inc. for working capital purposes. 2. An invoice was received from ACC's Insurance provider on January 15, 2020, for casualty insurance coverage in the amount of $2,400.00 for the period January 1, through December 31, 2020, = 3. Employees earned salary and wages in January of $6,500.00 which was paid on February 1, 2020. 4. The insurance premium described in transaction 2 was paid on January 31, 2020. 5. Office expense of $1,500 for the month of January was paid in cash on 01/30/20. 6. Insurance expense for the month of January was recorded on 01/31/20. 7. Depreciation expense for the month of January was $1,000.00 8. January service revenue for the Company is $21,000.00. All revenues are recorded as "on account X Prepare a "T" account depiction of the Company's General Ledger activity for the 9. ACC reviewed its work product for January and determined that it had performed $500.00 of the services required that were being accounted for as unearned revenue in addition to revenues described in transaction 8. 10. ACC recorded interest expense associated with the Note Payable described in transaction 1. NOTE Other events possibly having an effect on the company: At the end of January, the Board of Directors voted to shut down and liquidate a component of the company's operations. This represents a strategic shift in their operations. The component experienced a 2,100 loss during January. This was partially offset by a $1,200 gain on the disposition of the assets. Both of these transactions are net of tax and have already been appropriately reflected in the Retained Earnings balance shown on the December 31, 2019 Balance Sheet. Note 14 of ACC's financial statements for the year ended 12/31/19 indicates the company's effective tax rate to be 25% The company's common stock account includes 100,000 shares authorized, 1,000 shares issued Se prepare the appropriate journal entries associated with the above transactions. It is not necessary to prepare journal entries associated with the discontinued component. month of January 2020. Prepare ACC's Income Statement for the month ending January 31, 2020 Prepare ACC's Balance Sheet at January 31, 2020. and outstanding. Required: On separate sheets of paper, please

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

Sound Investing, Chapter 25 - Change In Auditors

Authors: Kate Mooney

3rd Edition

0071719474, 9780071719476

More Books

Students also viewed these Accounting questions