Question #1

(35 marks)

PENULTIMATE began business on December 1, 2019. Its December transactions are:

Dec. 1 Invested $40,000 in the business in exchange for common stock.

2 Paid $2,400 cash for December rent.

2 Purchased $2,160 of supplies on account.

3 Purchased $19,000 of office equipment; paying $4,700 cash with the balance due in 30 days.

14 Paid $3,600 cash for assistants wages for two weeks work.

20 Performed consulting services for $6,000 cash

30 Billed clients $14,400 for December consulting services

31 Paid $2,800 cash for dividends

Required:

a.

Record these transactions in journal entry form and prepare the unadjusted trial balance. 10 marks

b.

Journalize the following adjusting entries at December 31: 5 marks

1. Supplies available at December 31 are $1,440.
2. Accrued wages payable at December 31 are $540
3. Depreciation for December is $240.
4. PENULTIMATE has spent 30 hours on a tax fraud case during December. When completed in January, his work will be billed at $175 per hour. (Use Fees Receivable)

Prepare the adjusted trial balance 8 marks

c.

Prepare the underlying financial statements of I/S (4 marks) and B/S (8 marks).

Question #2.

(21 marks)

A.

MB 28

B.

MB 29

C.

MB 30

Question #3.

(24 marks)

PB 55

Question #4

Use P2-52 to (a) prepare the required adjusting entries and (b) the adjusted trial balance. 20 marks