Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kindly answer that Question 3: Lynda Rigg started her own consulting firm, All Consulting, Inc. on Jan 1, 2014. The trial balance at June 30

Kindly answer that

image text in transcribed
Question 3: Lynda Rigg started her own consulting firm, All Consulting, Inc. on Jan 1, 2014. The trial balance at June 30 is as follows. Account Number Debit Credit 101 Cash 15,400 112 Accounts Receivable 8,000 126 Supplies 3,000 130 Prepaid Insurance 4,800 157 Equipment 24,000 201 Accounts Payable 9,000 209 Unearned Service Revenue 5,200 311 Common Stock 32,000 100 Service Revenue 17,000 726 Salaries and Wages Expense 6,000 729 Rent Expense 2,000 63,200 63,200 In addition to those accounts listed on the trial balance, the chart of accounts for All Consulting also contains the following accounts and account numbers: No. 158 Accumulated Depreciation-Equipment, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 736 Utilities Expense. Page 2 of 3 Other data: a) Rs.1,000 of supplies have been used during the six month period. b) Utilities expense incurred but not paid on June 30, 2014, Rs.400. c) The insurance policy is for 2 years. d) Rs.4,000 of the balance in the Unearned Service Revenue account remains unearned at the end of the six month period. e) The office equipment has a 5-year life with no salvage value. It is being depreciated at Rs.400 per month for 60 months. Required: (12) i. Journalize the adjusting entries on June 30 for the 6-month period Jan 1-June 30. Prepare all ledger accounts, enter the trial balance amounts and post the adjusting entries. Prepare an adjusted trial balance on June 30. Iv. Prepare an income statement and a retained earnings statement for the 6 months ending June 30 and a balance sheet as of June 30

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

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

8. What are the costs of collecting the information?

Answered: 1 week ago

Question

1. Build trust and share information with others.

Answered: 1 week ago