Question #1.

(70 marks)

RTS 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 $1,500 cash for December rent.

3 Purchased $1,880 of supplies for cash.

4 Purchased $19,000 of office equipment; paying $12,700 cash with the balance due in 30 days.

14 Paid $1,850 cash for assistants wages.

20 Performed consulting services for $6,000 cash

30 Billed clients $14,400 for December consulting services

31 Paid $2,800 cash for dividends

a.(10 marks)

Record these transactions in journal entry form

Assume December 31, 2019 fiscal year end.

b.

Prepare the unadjusted trial balance (10 marks)

Cash

Fees Receivable

Supplies

Office Equipment

Accounts Payable

Share Capital

Retained Earnings (Dividend)

Consulting Revenue

Wages Expense

Rent Expense ______

c.

Journalize the following adjusting entries at December 31: (10 marks)

1. Supplies available at December 3 are $1,410.
2. Accrued wages payable at December 31 are $670
3. Depreciation for December is $240.
4. RTS has spent 60 hours on a tax fraud case during December. When completed in January, his work will be billed at $75 per hour. (Use Fees Receivable)

d.

Prepare the adjusted trial balance (10 marks)

e.

Prepare the underlying financials: the income statement for the month of December (10 marks) and the Balance sheet (20 marks) at December 31, 2019.