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On July 1, 2020, Vince Partap, an attorney-at-law, opened his own legal practice known as VP Chambers. The following trial balance was prepared as at
On July 1, 2020, Vince Partap, an attorney-at-law, opened his own legal practice known as VP Chambers." The following trial balance was prepared as at June 30, 2021, after one year (12 months) of operations: VP CHAMBERS TRIAL BALANCE AS AT JUNE 30, 2021 Debit $ Credit $ Cash 480,000 126,400 1,650 350.000 54,000 Accounts Receivable Office Supplies Motor Vehicle Office Equipment Accounts Payable Utilities Payable Unearned Retainer Fees Loan Payable Vince Partap, Capital July 01, 2020 Vince Partap, Drawings Legal Fees earned Computer Service Expense Wages Expense Utilities Expense Insurance Expense Rent Expense Miscellaneous Expense 48,000 200 26,500 243.400 374,950 12,000 655,500 13,600 155,000 17,750 21,450 104,000 12,700 $1,348,550 $1,348,550 Additional Information: 1. As of June 30, 2021 accrued interest on the loan amounted to $2,700, while accrued wages totalled $6,800. 2. Since the last billing to clients on June 21, 2021, Mr Partap got a brief and rendered legal services worth $75,000. 3. Many clients are asked to make an advance payment for the legal services to be rendered in future months. The advance payments are credited to the Unearned Retainer Fees account. During June 2021, $25,000 of these advances was earned by the practice but no entry in the records has yet been made to reflect this. 4. Office supplies on hand at June 30, 2021 amounted to $720. 5. Mr Partap must pay $53,400 of the bank loan within the next year. 6. The office equipment and motor vehicle were acquired at the inception of the practice on the July 1, 2020 in the sums of $54,000 and $350,000 respectively. The office equipment and motor vehicle have estimated economic lives of five years and four years respectively and are to be depreciated on the straight-line basis. 7. Insurance Expense outstanding as at June 30, 2021 amounted to $1,950. 8. Rent paid in advance as at June 30, 2021 amounted to $8,000, REQUIRED: (a) Prepare the adjusting entries to record the additional information as at June 30, 2021 in general journal form and post these entries to the relevant accounts in the ledger (b) Prepare the adjusted trial balance as at June 30, 2021 (c) Prepare the income statement for the year ended June 30, 2021, as well as the Statement of Owner's Equity and Statement of Financial Position (Balance Sheet) as at June 30, 2021
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