Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paste BIU V Merge & Center A31 fx P) Depreciation for the year on the equipment was 10% of the year-end Equipment ac A 3

image text in transcribed
image text in transcribed
Paste BIU V Merge & Center A31 fx P) Depreciation for the year on the equipment was 10% of the year-end Equipment ac A 3 Requirements: 4 1) Record events a) through i) below in the accounting equation ("Grid" worksheet, rows 7.15) 5 2) Record events a) through i) below as journal entries (")-Es" worksheet, rows 1-46) 6 Note: See the instruction in row 1 of the "l-Es" sheet about Account Names and Basic Acct Eq. Impacts. Although there was only one column for expenses on the grid, in your journal entries you must use the 7 appropriate expense account names from the chart of accounts 8 3) Prepare an Unadjusted Trial Balance ("UnAdj Te" worksheet) 9 4) Record events i) through p) in the accounting equation ("Grid" worksheet, rows 17-24) 10 5) Record events i) through p) below as journal entries ("l-Es" worksheet, rows 48-87) 116) Prepare an Adjusted Trial Balance ("Adjusted T8" worksheet) 127) Prepare all four financial statements ("Fin Stmts" worksheet) 13 14 Events: 15 a) Purchased $14,800 of equipment for use in the business, paid $1,480 in cash and the rest was on account 16 b) Purchased $1,200 supplies on account for future use. 17 c) Customers paid $7,500 in advance for future services 18 d) Earned $127,500 in service revenues for 2021, including $93,800 on credit and $33,700 collected in cash. 19 ) Collected accounts receivable, $17,900. 20 Sold an old vehide (that was fully deprecated) for $2,500 cash 21 ) On Oct. 31, paid $9,500 to rent a building for 12 months, starting on Nov. 1. 22 h) Paid accounts payable, $12,400 23 Declared and paid a $24,000 cash dividend. 24 Information for Adjustments: 25 Koala recorded $3,500 in service provided that had been collected in event (c), but had not yet been recorded 26 K) During December, Koala accrued $4,740 in service that had been provided to customers on account 27 ) Wages of $10,600 earned by employees since the December 24 payroll were not yet paid 28 m) Determined after a year-end count that $3,200 of supplies remained on hand at the year. 29 n) Accrued annual interest at 9.0% on the outstanding balance of the loan (promissory note). 30 o) Building rental expenses for the year, pald in transaction (g), had not yet been recorded 31 p) Depreciation for the year on the equipment was 10% of the year-end Equipment account balance 32 9) Income tax for the year was $23,800, it will be paid in 2022 33 34 35 36 37 38 39 Icons Grid J-Es UnAdj TB Adjusted TB Fin Stmts + Ready B 1 2 Koala Industries Inc. Unadjusted Trial Balance As of December 31, 2021 3 4 5 Debit Credit 6 Cash 7 Accounts Receivable 8 Supplies (on hand) 9 Prepaid Services 10 Equipment 11 Accum. Deprec. (Equip.) 12 Accounts Payable 13 Unearned Revenue 14 Notes Payable 15 Common Stock 16 Retained Earnings 17 Dividends Declared 18 Service Revenue 19 Depreciation Expense 20 Interest Expense 21 Rent Expense 22 Supplies Expense 23. Wages Expense 24 Income Tax Expense 26 Total 2 6 2 28 20

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

Accounting What The Numbers Mean

Authors: David Marshall, Wayne William McManus, Daniel Viele

7th Edition

0073011215, 9780073011219

More Books

Students also viewed these Accounting questions