Question
Mario Ruini is the owner of Baylee Company, which is a company that offers consulting services. The company prepares the financial statements at the end
Mario Ruini is the owner of Baylee Company, which is a company that offers consulting services. The company prepares the financial statements at the end of the December and records the adjusting entries on monthly basis. Below you can find the unadjusted Trial Balance as of December 31 st 2019. Below you can find a list of the adjusting entries that needs to be recorded. 1. Revenue Accruals for December 31, 2019, amount to $1,500 2. $2,500 of cash receipts originally that clients paid in advance had been earned as of December 31. 3. September 1, 2019 for $1,800 the company purchased an insurance policy covering 6 months. 4. On the first day of the month company paid the rent for 3 months. 5. Supplies on hand are $500 6. The equipment will be used for 10 years. After that the residual value will be 0. 7. First day of August the company signed a Notes payable. The principle is $12,000 and the annual interest rate is 8%. The whole principal and the interest expense will be paid in the first day of February 2020. 8. Salaries payable are $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $700 each per week, and three employees earn $500 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. The salaries are paid on January 10th 2020. 9. $20,000 is the value of the estimated tax for the entire year.
Please: a. Journalize the above transactions (provide also the explanation) b. Prepare the General Ledger c. Prepare the Adjusted Trial Balance d. Prepare the Income Statement e. Prepare the Owners Equity Statement f. Prepare the Balance Sheet
Unadjusted Trial Balance 31/12/2019 Credit Debit 17,020.00 20,200.00 900 3,000.00 600 60,000.00 29,500.00 Account Tittle Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office supplies Equipment Accumulated-Depreciation: Equipment Accounts Payable Notes Payable Interest Payable Income Tax Payable Unearned Revenues M. Ruini Capital Drawings Service Revenues Travel Expense Insurance Expense Rent Expense Office Supplies Expense Utilities Expense Depreciation Expense Salaries Expense Interest Expense Income Tax Expense Total 4,180.00 12,000.00 320 4,000.00 26,000.00 25,000.00 3,000.00 75,000.00 5,000.00 2,980.00 9,900.00 780 4,800.00 5,500.00 30,000.00 320 12,000.00 176,000.00 176,000.00
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