Question
Problem 1 Kats Cat Klinic had the following balance sheet as of December 31, 2016 : Assets: Liabilities and Stockholders Equity Cash $ 211,000 Accounts
Problem 1
Kats Cat Klinic had the following balance sheet as of December 31, 2016:
Assets: Liabilities and Stockholders Equity
Cash $ 211,000 Accounts Payable $ 37,000
Accounts Receivable $95,000 Salaries Payable 19,300
Less Allowance (6,300) 88,700 Utilities Payable 3,200
Prepaid Insurance 27,000 Interest Payable 4,100
Supplies 31,000 Unearned Revenue 16,800
Building $530,000 Notes Payable 64,000
Accum Depr Build (205,000) 325,000 Common Stock 238,000
Equipment $407,000 APIC 396,900
Accum Depr Equip(119,000) 288,000 Retained Earnings 191,400
$ 970,700 $ 970,700
========= =========
The following economic events occurred during 2017:
Performed services for $ 211,000, all on account.
Paid $ 169,000 for salaries that were due. (THINK!)
Collected $ 126,000 from customers on account.
Received $ 41,000 for services to be performed.
Paid $ 8,900 due for utilities. (THINK!)
Performed services totaling $ 236,000 of which $ 91,000 was received in cash.
Purchased $ 44,000 worth of supplies and paid cash.
Paid $ 7,300 for interest due on note. (THINK!)
Wrote off uncollectible bad debt of $ 11,600. (See 2012/2030 text or page 363.)
Paid $ 167,000 for salaries.
Collected $ 234,000 on account.
Paid $ 22,000 on account.
Issued 75,000 shares of $ 1 par value common stock and received $ 310,000. (See 2012/2030 text or page 1047.)
Performed services totaling $ 284,200 of which $ 79,000 was received in cash.
Declared and paid a cash dividend of $ 85,000. (Use a dividend account.) (See page 91.)
Collected $ 191,000 on account.
The following information pertains to 2017 year-end adjusting entries:
Estimated $ 12,100 for bad debts expense.
$ 9,400 of insurance remains unexpired at year-end.
There are $ 38,200 worth of supplies on hand.
Allocated $ 29,000 for depreciation of buildings and $ 33,000 for depreciation of equipment.
Accrued the following expenses: salaries, $ 10,700; utilities, $ 2,200; interest, $ 5,800.
Earned $ 32,300 of prepaid services.
Using the information above, complete the following:
Open T-accounts and enter the beginning balances from the 2016 balance sheet.
Record 2017 transactions 1 thru 16 in general journal form.
Post transactions 1 thru 16 to the T-accounts.
Prepare a 2017 unadjusted trial balance in good form. (Balance should be 2,328,300)
Record 2017 adjusting entries a thru f in general journal form.
Post adjusting entries a thru f to the T-accounts.
Prepare a 2017 adjusted trial balance in good form. (Balance should be 2,415,800)
Prepare a 2017 year-end income statement, statement of stockholders equity and a balance sheet, all in good form. (Total assets should be 1,465,200)
Record closing entries in general journal form. (Use an Income Summary account.)
Post closing entries to the T-accounts.
Prepare a 2017 post-closing trial balance. (Balance should be 1,858,000)
*I POSTED THIS ONCE BEFORE, BUT ANSWERER DID NOT ANSWER BOTTOM 3*
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