Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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*

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

Auditing An International Approach

Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette

8th Canadian Edition

1259451275, 978-1259451270

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago

Question

What is the relationship between humans and nature?

Answered: 1 week ago