own Hand in 1/15 answered Hamdan, Mohamad Smith Ltd is a consulting firm providing tax planning and company secretarial services to various clients. You have recently been hired as the accountant of the firm to prepare journal entries for the following transactions of the tax division for the month of October 2020: 2020 Oct. 1 Issued 6,000 additional share capital for cash at $45 per share. 2 Paid $1.000 dividend by cash to shareholders, 3 Received cash of $25,000 on account from a client, Melissa Hunt, for tax planning services provided on 15 September 2020. 5 Paid office rent for October 2020 in the amount of $1,200 by cash. 20 Received electricity bill for October 2020, $3,900 to be paid next month. 23 Billed David Chan, a client, $47.000 for tax planning services provided. 25 Paid $6,010 by cash for office supplies purchased and recorded on account in September 2020. 27 Purchased office supplies for $5,200 on account. In addition, you are also required to complete the accounting cycle of the company secretarial division by preparing appropriate adjusting entries for the month ended 31 October 2020. Relevant data and information for the adjusting entries are provided below: (a) Wages and salaries earned by employees ($5,400) during October 2020 were still unpaid and unrecorded. The next payroll date is on 3 November 2020. (b) The total amount of office supplies on hand at 1 October 2020 was $900. Office supplies purchased and debited to Office Supplies account during the month amounted to $1,000. The office supplies remained on 31 October 2020 was $550. (c) One-fifth of the office space is rented to ABC Company for $1,120 per month, payable monthly. On 31 October 2020, the rent for September and October 2020 had not been collected or recorded. Collection is expected on 9 November 2020. (d) The cost of the office equipment as at 31 October 2020 was $120,000. The estimated denreciation of the office caninment for the month of October 2020 was $2.500 Hamdan, On 1 May 2020. a two-year insurance premium amounting to $4,800 was paid in cash and debited in full to Prepaid Insurance account. Insurance coverage started on 1 May 2020 and adjusting entries have been completed up to 30 September 2020. For the month ended 31 October 2020. an invoice for company secretarial services provided ($10,000) had been sent to a client but the amount had not been paid or recorded as at 31 October 2020. Collection is expected on 10 November 2020. Q1-a For the tax division, prepare journal entries for the transactions in October 2020. (8 marks) a Save Unanswered Q1-b For the company secretarial division, prepare adjusting entries as at 31 October 2020. (12 marks) own Hand in 1/15 answered Hamdan, Mohamad Smith Ltd is a consulting firm providing tax planning and company secretarial services to various clients. You have recently been hired as the accountant of the firm to prepare journal entries for the following transactions of the tax division for the month of October 2020: 2020 Oct. 1 Issued 6,000 additional share capital for cash at $45 per share. 2 Paid $1.000 dividend by cash to shareholders, 3 Received cash of $25,000 on account from a client, Melissa Hunt, for tax planning services provided on 15 September 2020. 5 Paid office rent for October 2020 in the amount of $1,200 by cash. 20 Received electricity bill for October 2020, $3,900 to be paid next month. 23 Billed David Chan, a client, $47.000 for tax planning services provided. 25 Paid $6,010 by cash for office supplies purchased and recorded on account in September 2020. 27 Purchased office supplies for $5,200 on account. In addition, you are also required to complete the accounting cycle of the company secretarial division by preparing appropriate adjusting entries for the month ended 31 October 2020. Relevant data and information for the adjusting entries are provided below: (a) Wages and salaries earned by employees ($5,400) during October 2020 were still unpaid and unrecorded. The next payroll date is on 3 November 2020. (b) The total amount of office supplies on hand at 1 October 2020 was $900. Office supplies purchased and debited to Office Supplies account during the month amounted to $1,000. The office supplies remained on 31 October 2020 was $550. (c) One-fifth of the office space is rented to ABC Company for $1,120 per month, payable monthly. On 31 October 2020, the rent for September and October 2020 had not been collected or recorded. Collection is expected on 9 November 2020. (d) The cost of the office equipment as at 31 October 2020 was $120,000. The estimated denreciation of the office caninment for the month of October 2020 was $2.500 Hamdan, On 1 May 2020. a two-year insurance premium amounting to $4,800 was paid in cash and debited in full to Prepaid Insurance account. Insurance coverage started on 1 May 2020 and adjusting entries have been completed up to 30 September 2020. For the month ended 31 October 2020. an invoice for company secretarial services provided ($10,000) had been sent to a client but the amount had not been paid or recorded as at 31 October 2020. Collection is expected on 10 November 2020. Q1-a For the tax division, prepare journal entries for the transactions in October 2020. (8 marks) a Save Unanswered Q1-b For the company secretarial division, prepare adjusting entries as at 31 October 2020. (12 marks)
