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Please solve the following accounting problems, it's mainly from the Principles of accounting course. Questions are in the Instructions part Problem-01 On January 1, 2016,
Please solve the following accounting problems, it's mainly from the Principles of accounting course. Questions are in the Instructions part
Problem-01 On January 1, 2016, the account balances of Hamm Equipment Repair were as follows. No. Debit No. Credit 101 Cash $ 2,400 154 Accumulated Depreciation-Equipment $ 2,000 112 Accounts Receivable 4,250 201 Accounts Payable 2,600 126 Supplies 1,800 209 Unearned Service Revenue 1,200 153 Equipment 12,000 212 Salaries and Wages Payable 700 301 Owner's Capital 13,950 $20,450 $20,450 During 2016, the following summary transactions were completed. January: 8 Paid $1,700 for salaries due employees, of which $700 is for 2015 salaries. January: 10 Received $3,620 cash from customers on account. February: 12 Received $3,100 cash for services performed. February 28: Performed services for Roland Co. on account at 2/10, n/30 and billed for $ 5,000 March: 5 Purchased equipment on account $2,000. March 31: The amount receivable from Roland Co. becomes due but he is unable to make payment, however Roland provided a 12% nine months note to satisfy the amount due. May: 17 Purchased supplies on account $700. June 30: Hamm borrows money from Z Co. $ 10,000 by signing a 6% 2 years notes payable in two installments. July: 2 Paid creditors on account $2,700. October 22: Paid rent $400 for 2016. November 25: Paid salaries $1,700. December 27: Performed services on account and billed customers for these services $2,200. December 31: Received $600 from customers for future service. Adjustment data consist of: 1. Supplies on hand $1,400. 2. Accrued salaries payable $350. 3. Depreciation for 2016 is $200. 4. Services related to unearned service revenue of $1,220 were performed. 5. Adjust interest on note payable and note receivable. 6. Note payable of $5,000 is payable in 2017. Instructions: (a) Journalize and post the transactions. (b) Prepare a trial balance. (c) Journalize and post the adjusting entries and produce an adjusted trial balance. (d) Prepare a worksheet. (e) Prepare the income statement and owner's equity statement and a classified balance sheet. (f) Prepare closing entries and a post-closing trial balanceStep by Step Solution
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