Question
Over the past year, Anne Sharpe has operated a part- time consulting business from her home. As of September 1, 2021, Anne decided to move
Over the past year, Anne Sharpe has operated a part- time consulting business from her home. As of
September 1, 2021, Anne decided to move to a rented building and operate the business, which is to be
known as Sharpe's Home Haven, Inc., on a full-time basis. The following transactions occurred in the
month of September:
Sept 1 The following assets were received from Anne Sharpe in exchange for Common Stock of
Sharpe's Home Haven, Inc.: cash $7,050; accounts receivable $1,500; supplies $1,250; and
office equipment $7,200. There were no liabilities received.
2 Paid three months' rent on a rental contract, $3,600.
2 Paid the premiums on property and casualty insurance policies for one year, $1,500.
4 Received cash from clients as an advance payment for services to be provided and recorded it
as unearned fees, $3,500.
5 Purchased additional office equipment on account from Payne Company, $1,800.
6 Received cash from clients on account, $800.
10 Paid cash for a newspaper advertisement, $120.
12 Paid Payne Company for part of the debt incurred on September 5, $800.
12 Recorded services provided on account for the period September 1 - 12, $1,200.
13 Paid part-time receptionist for two weeks' salary, $400.
17 Recorded cash from cash clients for fees earned during the first half of September, $2,100.
18 Paid cash for supplies, $750.
20 Recorded services provided on account for the period September 13 -20, $1,100.
24 Recorded cash from cash clients for fees earned for the period September 17 - 24, $1.850
25 Received cash from clients on account, $1,300.
27 Paid part-time receptionist for two weeks' salary, $400.
29 Paid telephone bill for September, $130.
30 Paid electricity bill for September, $200.
30 Recorded cash from cash clients for fees earned for the period September 25 - 30, $1,050.
30 Recorded services provided on account for the remainder of September, $500
30 Paid dividends, $1,500.
Required:
a). Prepare an income statement and a statement of retained earnings for the month of September and a balance sheet as of September 30, 2021. ( Use proper format and capitalize headings)
b). Prepare a post-closing trial balance.
Note: Journal entry not required, i have already got those entries from my previous post.
Thanks in advance :)
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