Problem 1. The account balances from the September 30, 2020 unadjusted trial balance for Washington Enterprises Inc. are presented below: Debit Credit Contributed Capital.. $110,000 Office Furniture... 72,000 Accumulated Depreciation Furniture 6,000 Cash... $224,000 Rent Expense. 12,000 Retained Earnings.. 125,000 Accounts Receivable. 71,000 Accounts Payable.... 98,000 Office Supply Inventory.. 58,000 Note Payable (taken out on 9/1/20; 10% interest due annually) 30,000 Consulting Revenue... 110,000 Deferred Revenue.. 20,000 Salaries Expense. 40,000 Prepaid Insurance. 22,000 Additional information is as follows: a. The Prepaid Insurance represents the original premium of S24,000 paid on July 1, 2020 for a 2 year policy. b. The Office Furniture has an estimated five year life with no residual (salvage) value. c. You found a utility bill that had not been included in the accounts and had not been paid. The amount was $5,000. d. For deferred revenue, consultants charged 50 hours during September to these clients. No revenue has been recognized nor have any adjustments been made. The CEO estimated that it would take another 10 hours per month for the next 20 months to complete the work Movies Transa....doc Movies problem.doc Additional Pri...docx 25 c. Office Supplies inventory totaled $9,000 at the end of September. The balance in Office Supplies at September 1, 2020 was $4,000. There was a $54,000 purchase of Office Supplies during September. f. Dividends of $5,000 were declared on September 28, 2020 to shareholders of record as of September 29, 2020, payable on December 1, 2020 g. The Note is due 12/31/21. h. Washington's administrative staff works a 7 day work week. September 30, 2020 falls on a Thursday. Payday (and the last day of the work weck) is every Friday. The weekly payroll is $14,000 carned evenly over the 7 days. 1.1 Prepare all necessary adjusting entries for the month ending Sept. 30, 2020. 1.2 Prepare an a) income statement, b) statement of stockholders' equity and c) classified balance sheet for the month ended September 30, 2020. c. Office Supplies inventory totaled $9,000 at the end of September. The balance in Office Supplies at September 1, 2020 was $4,000. There was a $54,000 purchase of Office Supplies during September. f. Dividends of $5,000 were declared on September 28, 2020 to shareholders of record as of September 29, 2020, payable on December 1, 2020 g. The Note is due 12/31/21. h. Washington's administrative staff works a 7 day work week. September 30, 2020 falls on a Thursday. Payday (and the last day of the work weck) is every Friday. The weekly payroll is $14,000 carned evenly over the 7 days. 1.1 Prepare all necessary adjusting entries for the month ending Sept. 30, 2020. 1.2 Prepare an a) income statement, b) statement of stockholders' equity and c) classified balance sheet for the month ended September 30, 2020
