Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 3 (50 marks) Barbara Imagine created Imagine That, a proprietorship, in 2016. Imagine That's unadjusted T- accounts had the following December 31, 2018 balances:
Question 3 (50 marks) Barbara Imagine created Imagine That, a proprietorship, in 2016. Imagine That's unadjusted T- accounts had the following December 31, 2018 balances: Cash Bal. 82,000 L TT Accounts Receivable Bal. 127,000 Supplies Bal. 13.000 Office Furniture Accounts Payable Accumulated Amortization, Office Furniture ...Bal. 31,000. .Bal. 166,000 L ..J.Bal. 43.000 Bank Loan Salary Payable Unearned Service Revenue ........Bal. 1.000. J.Bal. 115,000 Barbara Imagine, Capital Bal. 118,000 Barbara Imagine, Withdrawals Bal. 157,000 I T Service Revenue Bal. 375,000 Supplies Expense Salary Expense Bal. 103,000 Advertising Expense | Bal. 25,000 Interest Expense Amortization Expense, Office Furniture Bal. 10,000 Accounts that required adjustments at December 31, 2018 were comprised of the following: a. Amortization for the year was $ 16,500. b. Supplies on hand at December 31, 2018 were $ 5,000. c. Bonuses accrued at year end were $ 43,000 and were going to be paid in March, 2019. d. Imagine That signed a contract on December 31, 2018. The contract stated that Imagine That was to provide interior design work for a shopping mall that was going to be open in June 2019. Imagine That was given a cheque for $ 250,000. e. On December 31, 2018, Imagine That received a $6,000 invoice regarding an ad that it placed on the internet. The invoice will be paid in February 2019. Required: A. Record the above T-account information on a worksheet trial balance column. Then, record the adjusting journal entries onto the worksheet, and complete the worksheet. Identify each adjusting journal entry by the numeral corresponding to the data given. B. In a journal, record the adjusting and closing journal entries. Provide explanations. C. Prepare Imagine That's December 31, 2018 income statement. D. Prepare Imagine That's December 31, 2018 statement of owner's equity. E. Prepare Imagine That's December 31, 2018 balance sheet. F. Prepare Imagine That's December 31, 2018 post-closing trial balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started