Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with worksheet items that are incorrect. GL0401 - Based on... LO C3, P2, P3 The Smart Deals Company began operations on December 1,

Please help with worksheet items that are incorrect.

image text in transcribedimage text in transcribedimage text in transcribed
GL0401 - Based on... LO C3, P2, P3 The Smart Deals Company began operations on December 1, 2019. The unadjusted trial balance of the Smart Deals Company as of December 31, 2019 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Smart Deals Company found in chapter 3. 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2019. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any. 2) Based on a physical count, supplies on hand total $4,650. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any. 3) The equipment is expected to have a 4-year useful life. and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry. if any. 4) On December 26, the client paid a $9.000 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry. if any. 5) Smart Deals's sole employee eams $120 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries payable, and prepare the necessary adjusting entry, if any. 6) In the second week of December, Smart Deals agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,900. The terms of the initial agreement call for Smart Deals to provide services from December 12. 2019. through January 10, 2020. or 30 days of service. The club agrees to pay Smart Deals $3,900 on January 10, 2020, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry. if any. Prepare the required adjusting and closing entries for the Smart Deals Company. Requirement General General Trial Balance Income St Owner Joumal Ledger Statement Equity Balance Sheet Work Sheet One of the benefits of a work sheet is that it links accounts and adjustments to their impacts in financial statements. Complete the work sheet below for the Smart Deals Company.Post-closing Smart Deals Company Work Sheet For the Year Ended December 31, 2019 Unadjusted Trial Adjustments Adjusted Trial St. of Owner's Balance Balance Income Statement Equity & Balance Sheet Account Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 14.255 14.255 0 14.255 Accounts receivable 0 2.600 2,600 2.600 0 0 Supplies 8.200 1.550 4.650 4.650 Prepaid insurance 8,400 350 8.050 8,050 Equipment 36.400 0 38,400 0 38,400 Accumulated depreciation 550 550 550 Accounts payable 14.200 14.200 0 14.200 Salaries payable 360 360 360 Unearned consulting revenue 9.000 750 8.250 8.250 D. Kelley, Capital 38,000 38,000 38,000 D. Kelley, Withdrawals 1.200 1.200 1.200 Consulting revenue 3.800 750 9.550 0 12.150 Rental revenue 400 400 400 Depreciation expense 550 550 650 Salaries expense 2,040 360 2.400 2.400 Insurance expense 350 350 350 Rent expense 1,500 1.500 1.500 Supplies expense 1.550 1,550 .550 Utilities expense 405 405 405 Totals 70.400 70.400 6.160 3.560 |73.910 71,310 8.755 12.550 87.155 81,380 Net income 0X OX Totals 8.755 12.550 67.155 61,360

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

Managerial Accounting

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

1st Edition

0078110777, 9780078110771

More Books

Students also viewed these Accounting questions

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago