Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Question 2 The accounting firm Bravo Inc. prepares its own financial statements at the end of each year. Based on the following information, prepare any
Question 2 The accounting firm Bravo Inc. prepares its own financial statements at the end of each year. Based on the following information, prepare any adjusting entries that are needed for the accounting records as of December 31, 2020. 1. As of December 31, Bravo Inc. has rendered $20,500 worth of services to clients for which they have not yet billed the client and for which they have not made any accounting entry. 2. Bravo Inc. owns equipment (computers and so on) having an original cost of $12,000. The equipment has an expected life of six years Record depreciation for the current year. 3. On January 1, 2020, Bravo Inc. borrowed $15,000. Both principal and interest are due on December 31, 2021. The interest rate is 11%. 4. On January 1, 2020. Bravo Inc. rented storage space for three years. The entire three-year charge of $15.000 was paid at this time. Bravo Inc. (correctly created a prepaid rent account in the amount of SI5.000. 5. As of December 31. workers have earned $10,200 in wages that are unpaid and unrecorded I Question 1 The trial balance of Lee trading enterprise as at 31* December 2018 is given below. Credit $ Debit s 15,000 50,000 25,000 39,500 20,000 32,000 Office equipment Building Delivery van Cash at bank Opening stock Debtors and Creditors Loan from RBC Sales Rent received Interest Returns Purchases Carriage inwards Salary expenses Commission Repairs and maintenance Advertising Capital Total 18,000 40,000 92,000 15,000 7,000 6,300 3,200 4,500 34,000 7,800 21,000 9,200 1,800 300 85,000 263,300 263,300 Additional information at the end of the year: 1. Closing stock was valued at $22,000. 2. Accrued salaries were $2,000. 3. Advertising prepaid was $100. 4. Unearned rent amounted to $2,500 5. Outstanding interest income was $200. Required: Prepare a ten-column worksheet from the above-given details. 15 mark Question 1 The trial balance of Lee trading enterprise as at 31 December 2018 is given below. Credit s Debit s 15,000 50,000 25,000 39,500 20,000 32,000 Office equipment Building Delivery van Cash at bank Opening stock Debtors and Creditors Loan from RBC Sales Rent received Interest Returns Purchases Carriage inwards Salary expenses Commission Repairs and maintenance Advertising Capital Total 18,000 40,000 92,000 15,000 7,000 6,300 3,200 4,500 34,000 7,800 21,000 9,200 1,800 300 85,000 263,300 263,300 Additional information at the end of the year: 1. Closing stock was valued at $22,000. 2. Accrued salaries were $2,000. 3. Advertising prepaid was $100. 4. Unearned rent amounted to $2,500 5. Outstanding interest income was $200. Required: Prepare a ten-column worksheet from the above-given details. 15 mark
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6696a2a2dd9c2_0666696a2a259c6d.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6696a2a37fa81_0676696a2a320f0d.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6696a2a427834_0676696a2a3bb3d3.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started