PROBLEM ACCOUNTS Cash estruction: Close your eyes, take 3 deep breaths (slowly), imagine are an accountant, open your eyes and do some accounting. the November 30, 20x1 trial balance of Rak N' Koll Co., a call center business, shows the following information: during the month of December 20xl are as follows: RAK N' KOLL Co. Trial Balance November 30, 20x1 Debit Credit 396,000 Accounts receivable Prepaid insurance Computer equipment 1,400,000 Accumulated depreciation 240,000 Notes payable 1,000,000 Owner's equity 1,254,000 Owner's drawings 3,300,000 Service fees 4,946,000 990,000 1,100,000 165,000 84,000 5,000 7,440,000 7,440,000 supporting documents for the business transactions Salaries expense Rent expense Utilities expense Office supplies expense Insurance expense Totals The We 333 RAKN KOLL RAKN KOLL NE OFFICIAL RECEPT Reede 2005 OFFICIAL RECEIPT Bu CALLE RAKN KOLL RAK KOLL ON BE LAMON VILLAGE RULOT CITS TEN WAT NE 2007 RAKN KOLL BURG 2009 OFFICIAL RECEIPT DDY, OFFICIAL RECEPT Restoran Syle wth ONLINE SEARC 65.00 Deum. Thon H ERETT warto TARPTARE CHECK DISBURSEMENT VOUCHER RAKN KOLL 1219 RAKN CHECK DISBURSEMENT VOUCHER 250 KOLL Hals Jordan Building M. Kaye Ho - Company that One Hunde Thousand pesos Forty-Five Thousand pesos SERENCE PERALA Ory NO RAKN KOLL CHECK DISBURSEMENT VOUCH 12/08/20 03456 De OV CHECK DISBURSEMENT VOUCHER RAKN KOLL tot 0345% Bamboo Trading 5 DFBOR SL Nice Ave KMICERS Twenty Thousand pesos Pong Cutters Computers LINES AVEOLI One Hundred Fifty Thousand pesos QIY CTM UNT FORA POR ITE NING Chaded by 337 CHECK DISBURSEMENT VOUCHER RAKN KOLL 125 CHECK DISBURSEMENT VOUCHER RAKN KOLL 0961 Mang Benny COSTAR MISEROLE ESE Fifteen Thousand Pesos TEREO Five Thousand Peces ON CRAREA WER ARR LES O NOVOG CHECK DISBURSEMENT VOUS RAKN KOLL RAKN KOLL CHECK DISBURSEMENT VOUCHER 12/23/24 03460 cv Ms. Kaye Hera - Company Treasurer FIANORD RANI Seventy-Five Thousand pesos Forty-Five Thoud ees On 52 . Official receipt (OR) is a source document that evidences the collection Check disbursement voucher (CDV) is a source document that even Before recording a transaction, check the trial balance to see the account was used to record a similar transaction in the previous en Use the "prepaid insurance account to record the prepayment equipment (excluding the newly acquired laple computers) is P120,000. No depreciation has yet bar The notes payable pertains to a 12% bank loan taken November 30, 20x1. The principal on the loan is due air five years but monthly interests are due at the beginning Although no bills have yet been received, Rak N wants to accrue P7,500 for unpaid utilities used Hints: fees from rendering of services. payment 1.311 month pay is chargeable to "salaries expense" account. insurance. Additional information: Adjusting entries i. Hedge Fund, Inc., a customer, has been billed for all services rendered in December 20x1 amounting to P34,0 Hedge informed the Company that the check for the said amount is still being processed and is expected to be deposited to the Rak N' Koll's bank account on the firs week of January 20x2. Rak N' Koll recorded the billing only in January 20x2 when the service fees were collected. ii. Unused office supplies on December 31, 20x1 amount P9,000 The laptop computers acquired in December have estimated useful life of 2 years with no residual value Tk Company recognizes full-month depreciation in the mont of acquisition. The annual depreciation for the existing recognized for the year. iv. each month starting January 1, 20x2. December 16 to 31, 20x1. 339 Requirements: a. Analyze the supporting documents and record them in the Journal in a chronological order (i.e., arranged by date). b. Post the transactions in the Ledger (use T-accounts). Be sure to place the amounts in the trial balance above as the beginning balances in your T-accounts. c. Prepare the unadjusted trial balance columns of the December d. Prepare the year-end adjusting entries. e Complete the remaining columns of the December 31, 20x1 31, 20x1 worksheet up to the post-closing trial balance columns. t. Prepare the closing entries. 8. Prepare the 20x1 statement of financial position (balance sheet) and statement of profit or loss (income statement). worksheet PROBLEM ACCOUNTS Cash estruction: Close your eyes, take 3 deep breaths (slowly), imagine are an accountant, open your eyes and do some accounting. the November 30, 20x1 trial balance of Rak N' Koll Co., a call center business, shows the following information: during the month of December 20xl are as follows: RAK N' KOLL Co. Trial Balance November 30, 20x1 Debit Credit 396,000 Accounts receivable Prepaid insurance Computer equipment 1,400,000 Accumulated depreciation 240,000 Notes payable 1,000,000 Owner's equity 1,254,000 Owner's drawings 3,300,000 Service fees 4,946,000 990,000 1,100,000 165,000 84,000 5,000 7,440,000 7,440,000 supporting documents for the business transactions Salaries expense Rent expense Utilities expense Office supplies expense Insurance expense Totals The We 333 RAKN KOLL RAKN KOLL NE OFFICIAL RECEPT Reede 2005 OFFICIAL RECEIPT Bu CALLE RAKN KOLL RAK KOLL ON BE LAMON VILLAGE RULOT CITS TEN WAT NE 2007 RAKN KOLL BURG 2009 OFFICIAL RECEIPT DDY, OFFICIAL RECEPT Restoran Syle wth ONLINE SEARC 65.00 Deum. Thon H ERETT warto TARPTARE CHECK DISBURSEMENT VOUCHER RAKN KOLL 1219 RAKN CHECK DISBURSEMENT VOUCHER 250 KOLL Hals Jordan Building M. Kaye Ho - Company that One Hunde Thousand pesos Forty-Five Thousand pesos SERENCE PERALA Ory NO RAKN KOLL CHECK DISBURSEMENT VOUCH 12/08/20 03456 De OV CHECK DISBURSEMENT VOUCHER RAKN KOLL tot 0345% Bamboo Trading 5 DFBOR SL Nice Ave KMICERS Twenty Thousand pesos Pong Cutters Computers LINES AVEOLI One Hundred Fifty Thousand pesos QIY CTM UNT FORA POR ITE NING Chaded by 337 CHECK DISBURSEMENT VOUCHER RAKN KOLL 125 CHECK DISBURSEMENT VOUCHER RAKN KOLL 0961 Mang Benny COSTAR MISEROLE ESE Fifteen Thousand Pesos TEREO Five Thousand Peces ON CRAREA WER ARR LES O NOVOG CHECK DISBURSEMENT VOUS RAKN KOLL RAKN KOLL CHECK DISBURSEMENT VOUCHER 12/23/24 03460 cv Ms. Kaye Hera - Company Treasurer FIANORD RANI Seventy-Five Thousand pesos Forty-Five Thoud ees On 52 . Official receipt (OR) is a source document that evidences the collection Check disbursement voucher (CDV) is a source document that even Before recording a transaction, check the trial balance to see the account was used to record a similar transaction in the previous en Use the "prepaid insurance account to record the prepayment equipment (excluding the newly acquired laple computers) is P120,000. No depreciation has yet bar The notes payable pertains to a 12% bank loan taken November 30, 20x1. The principal on the loan is due air five years but monthly interests are due at the beginning Although no bills have yet been received, Rak N wants to accrue P7,500 for unpaid utilities used Hints: fees from rendering of services. payment 1.311 month pay is chargeable to "salaries expense" account. insurance. Additional information: Adjusting entries i. Hedge Fund, Inc., a customer, has been billed for all services rendered in December 20x1 amounting to P34,0 Hedge informed the Company that the check for the said amount is still being processed and is expected to be deposited to the Rak N' Koll's bank account on the firs week of January 20x2. Rak N' Koll recorded the billing only in January 20x2 when the service fees were collected. ii. Unused office supplies on December 31, 20x1 amount P9,000 The laptop computers acquired in December have estimated useful life of 2 years with no residual value Tk Company recognizes full-month depreciation in the mont of acquisition. The annual depreciation for the existing recognized for the year. iv. each month starting January 1, 20x2. December 16 to 31, 20x1. 339 Requirements: a. Analyze the supporting documents and record them in the Journal in a chronological order (i.e., arranged by date). b. Post the transactions in the Ledger (use T-accounts). Be sure to place the amounts in the trial balance above as the beginning balances in your T-accounts. c. Prepare the unadjusted trial balance columns of the December d. Prepare the year-end adjusting entries. e Complete the remaining columns of the December 31, 20x1 31, 20x1 worksheet up to the post-closing trial balance columns. t. Prepare the closing entries. 8. Prepare the 20x1 statement of financial position (balance sheet) and statement of profit or loss (income statement). worksheet