Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please fill out the journal general, the external transactions are labeled in the 3rd picture that says answer to 1 Fall 2020 - Practice Set
please fill out the journal general, the external transactions are labeled in the 3rd picture that says answer to 1
Fall 2020 - Practice Set Instructions: 1. Prepare journal entries to record external transactions. 2. Post journal entries to general ledger T accounts. 3. Prepare journal entries to record adjusting entries. 4. Post the adjusting entries to the general ledger T accounts (include a balance on each account) 5. Prepare an adjusted trial balance. 6. Prepare, using good form, an income statement, a statement of stockholders' equity, and a classified balance sheet. 7. Prepare closing journal entries. 8. Post the closing entries to the general ledger T accounts (include a balance on each account). 9. Prepare a post-closing trial balance. Company Information: Smith Inc. provides printing services to customers. They began operations on January 1, 2019. In January 2020, they realized the current VP had not created the records in an accounting system, and due to a time issue, the financial information must be recorded by hand to produce GAAP based financials for the year ending 2019. As such, they have hired you as the Accountant to get the manual system completed before implementing software for 2020. The research begins: First, you find the company uses straight-line depreciation for all long-term depreciable assets. They also must use the Allowance method to account for uncollectible accounts to be in line with GAAP. The company has decided to use the calendar year, so December 31 is the company's year-end. The company hired two employees on November 1, 2019, you will use the following for the November 27 and December 27 entries. The employees will receive a salary of $2,000 each (4,000 in total). Payroll is processed on the 27th of the month creating the employee and the employer taxes and then net pay is paid on the last day of each month. Upon further investigation, you find the following information related to the company's transactions during 2019. Process the information and produce GAAP based financials for Smith, Inc for the year ending December 31, 2019. Smith Inc. engaged in the following transactions in 2019. Jan 1 Jan 1 Jan 14 Feb 25 Mar 31 April 1 May 14 June 1 July 31 Aug 10 Sept 1 Oct 1 Nov 15 Nov 27 Nov 30 Dec 15 Dec 30 Dec 27 Dec 30 The owner invested $100,000 into the company in exchange for 5,000 shares of no-par common stock. Purchased a computer system for $40,000. Purchased $1,200 of supplies on account. Invoiced clients for services provided on account, $36,000. Paid rent for two years, $19,200. The company borrowed $50,000 from Bank of America. Collected $11,500 on account. Purchase a delivery van to delivery copies to customers, the van had a purchase price of $53,000, taxes on the van were $5,000 and document charges of $1,500 were paid. Paid $800 on account for supplies purchased on January 14. Received cash for services provided, $10,200. Paid utilities of $4,000. Received $30,000 in advance for services to be provided in the future. Paid for an ad in the local newspaper, $1,500. Processed employee payroll and employer taxes, gross earnings were $4,000. Paid the employee salaries, taxes are not due until January. The company declared and paid $6,000 in dividends. Invoiced clients for services performed totaling $8,500. Processed employee payroll and employer taxes, gross earnings were $4,000. Paid the employee salaries, taxes are not due until January. Smith Inc. Chart of Accounts Account Names Cash Common Stock Accounts Receivable Retained Earnings Allowance for Uncollectible Accounts Dividends Supplies Service Revenue Prepaid Rent Advertising Expense Equipment-Computer Utilities Expense Accumulated Depreciation - Computer Salaries Expense Delivery Van Depreciation Expense Accumulated Depreciation - Delivery Van Rent Expense Interest Expense Accounts Payable Supplies Expense Interest Payable Bad Debt Expense Deferred Revenue Salaries Payable Notes Payable CREDIT ($) DEBIT ($) 1,00,000 4000 1,00,000 4000 40,000 6000 40,000 6000 1,200 8500 Nov-30 Salary Payable A/c To Cash A/C Dec-15 Dividend A/c Dr To Cash A/C Dec-30 Accounts receivable A/c Dr To Service Revenue Dec-27 Salaries A/c Dr To Salary Payable A/C Dec-30 Salary Payable A/ To Cash A/C 1,200 8500 36,000 4,000 36,000 4,000 19,200 4000 19,200 4000 50,000 50,000 11,500 ANSWER TO 1 DATE PARTICULARS Jan-01 CASH A/C Dr TO COMMON STOCK Jan-01 COMPUTER A/C Dr TO CASH A/C Jan-14 SUPPLIES A/C Dr To Accounts payable A/C Feb-25 Accounts receivable A/c Dr To Service Revenue May-31 Prepaid Rent A/C To Cash A/C Apr-01 Bank A/C Dr To Loan A/C May-14 Cash A/C Dr To Accounts receivable A/C Jun-01 VAN A/C Dr To Cash A/C Jul-31 Accounts payable A/C To Cash A/C Aug-10 Cash A/C Dr To Accounts receivable A/C Sep-01 Utilities A/c Dr To Cash A/C Oct-01 Cash A/C Dr To Service Revenue Nov-15 Advertisement Expense A/c Dr To Cash A/C Nov-27 Salaries A/C Dr To Salary Payable A/c 11,500 59,500 59,500 800 800 10,200 10,200 4,000 4,000 30,000 30,000 1,500 1,500 4,000 4,000 Smith Inc. Journal General Date Account Name Debit Credit Fall 2020 - Practice Set Instructions: 1. Prepare journal entries to record external transactions. 2. Post journal entries to general ledger T accounts. 3. Prepare journal entries to record adjusting entries. 4. Post the adjusting entries to the general ledger T accounts (include a balance on each account) 5. Prepare an adjusted trial balance. 6. Prepare, using good form, an income statement, a statement of stockholders' equity, and a classified balance sheet. 7. Prepare closing journal entries. 8. Post the closing entries to the general ledger T accounts (include a balance on each account). 9. Prepare a post-closing trial balance. Company Information: Smith Inc. provides printing services to customers. They began operations on January 1, 2019. In January 2020, they realized the current VP had not created the records in an accounting system, and due to a time issue, the financial information must be recorded by hand to produce GAAP based financials for the year ending 2019. As such, they have hired you as the Accountant to get the manual system completed before implementing software for 2020. The research begins: First, you find the company uses straight-line depreciation for all long-term depreciable assets. They also must use the Allowance method to account for uncollectible accounts to be in line with GAAP. The company has decided to use the calendar year, so December 31 is the company's year-end. The company hired two employees on November 1, 2019, you will use the following for the November 27 and December 27 entries. The employees will receive a salary of $2,000 each (4,000 in total). Payroll is processed on the 27th of the month creating the employee and the employer taxes and then net pay is paid on the last day of each month. Upon further investigation, you find the following information related to the company's transactions during 2019. Process the information and produce GAAP based financials for Smith, Inc for the year ending December 31, 2019. Smith Inc. engaged in the following transactions in 2019. Jan 1 Jan 1 Jan 14 Feb 25 Mar 31 April 1 May 14 June 1 July 31 Aug 10 Sept 1 Oct 1 Nov 15 Nov 27 Nov 30 Dec 15 Dec 30 Dec 27 Dec 30 The owner invested $100,000 into the company in exchange for 5,000 shares of no-par common stock. Purchased a computer system for $40,000. Purchased $1,200 of supplies on account. Invoiced clients for services provided on account, $36,000. Paid rent for two years, $19,200. The company borrowed $50,000 from Bank of America. Collected $11,500 on account. Purchase a delivery van to delivery copies to customers, the van had a purchase price of $53,000, taxes on the van were $5,000 and document charges of $1,500 were paid. Paid $800 on account for supplies purchased on January 14. Received cash for services provided, $10,200. Paid utilities of $4,000. Received $30,000 in advance for services to be provided in the future. Paid for an ad in the local newspaper, $1,500. Processed employee payroll and employer taxes, gross earnings were $4,000. Paid the employee salaries, taxes are not due until January. The company declared and paid $6,000 in dividends. Invoiced clients for services performed totaling $8,500. Processed employee payroll and employer taxes, gross earnings were $4,000. Paid the employee salaries, taxes are not due until January. Smith Inc. Chart of Accounts Account Names Cash Common Stock Accounts Receivable Retained Earnings Allowance for Uncollectible Accounts Dividends Supplies Service Revenue Prepaid Rent Advertising Expense Equipment-Computer Utilities Expense Accumulated Depreciation - Computer Salaries Expense Delivery Van Depreciation Expense Accumulated Depreciation - Delivery Van Rent Expense Interest Expense Accounts Payable Supplies Expense Interest Payable Bad Debt Expense Deferred Revenue Salaries Payable Notes Payable CREDIT ($) DEBIT ($) 1,00,000 4000 1,00,000 4000 40,000 6000 40,000 6000 1,200 8500 Nov-30 Salary Payable A/c To Cash A/C Dec-15 Dividend A/c Dr To Cash A/C Dec-30 Accounts receivable A/c Dr To Service Revenue Dec-27 Salaries A/c Dr To Salary Payable A/C Dec-30 Salary Payable A/ To Cash A/C 1,200 8500 36,000 4,000 36,000 4,000 19,200 4000 19,200 4000 50,000 50,000 11,500 ANSWER TO 1 DATE PARTICULARS Jan-01 CASH A/C Dr TO COMMON STOCK Jan-01 COMPUTER A/C Dr TO CASH A/C Jan-14 SUPPLIES A/C Dr To Accounts payable A/C Feb-25 Accounts receivable A/c Dr To Service Revenue May-31 Prepaid Rent A/C To Cash A/C Apr-01 Bank A/C Dr To Loan A/C May-14 Cash A/C Dr To Accounts receivable A/C Jun-01 VAN A/C Dr To Cash A/C Jul-31 Accounts payable A/C To Cash A/C Aug-10 Cash A/C Dr To Accounts receivable A/C Sep-01 Utilities A/c Dr To Cash A/C Oct-01 Cash A/C Dr To Service Revenue Nov-15 Advertisement Expense A/c Dr To Cash A/C Nov-27 Salaries A/C Dr To Salary Payable A/c 11,500 59,500 59,500 800 800 10,200 10,200 4,000 4,000 30,000 30,000 1,500 1,500 4,000 4,000 Smith Inc. Journal General Date Account Name Debit CreditStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started