Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

question =The random order account balances (in $) shown here are from the Trial Balance of Slippery Slope, Inc. dated December 1, 2020. Unexpired Insurance,

question =The random order account balances (in $) shown here are from the Trial Balance of Slippery Slope, Inc. dated December 1, 2020. Unexpired Insurance, 2,800; Depreciation Expense: Building, 11,000; Accounts Receivable, 40,000; Accounts Payable, 21,000; Retained Earnings, 18,000; Unearned Revenue, 8,000; Accumulated Depreciation: Building, 40,000; Salaries Expense, 18,600; Capital Stock, 35,000; Cash, 52,400; Office Supplies, 8,200; Rent Expense, 24,000; Prepaid Rent, 3,000; Income Taxes Expense, 3,000; Interest Payable, 2,950; Building, 60,000; Office Supplies Expense, 11,700; Insurance Expense, 5,000; Service Revenue, 95,150; Income Taxes Payable, 3,000; Interest Expense, 7,400, Note Payable, 24,000. ii. The company engaged in different transactions during December, 2020. On December 02, Slippery Slope issued 5,000 more shares of capital stock for $20 per share. Accounts payable was partially settled on December 13, by paying $10,200 cash while on same date collected accounts receivable in full. A newspaper advertisement was placed on December 18 to be published in December 25 issue. The cost of advertisement was $1,530 and payment due in 30 days. On December 25, purchased office equipment of $120,000 from Jalil Enterprises by paying 50% in cash and promising to settle the remaining balance in 90 days. Office equipment of $25,000 was, however, returned on December 28. Return of this equipment reduced the amount owed to Jalil Enterprises. Services were provided to Zapta, Inc. on December 30 for $2,500 and the entire amount was collected on that date. iii. Detailed analysis of record further showed that the building and office equipment is being depreciated over 5 years. Office supplies on hand at December 31, 2020 amounted to $4,100. The rent payment policy of the company is to pay it advance at start of each quarter. The most recent advance payment of $9,000 was made on October 1, 2020. Salaries earned by employees during the month but not yet recorded or paid amounted to $1,700. The company borrowed $24,000 from a bank on July 1, 2020 @ 8% per annum by signing a 12-month promissory note. The entire note and interest is due on June 30, 2021. Moreover, the company paid $4,800 on July 01, 2020 to renew its 12-month insurance policy. The record further depict that $8,000 of previously unearned revenue has been earned on December 31, 2020 while it was estimated that the accrued inco me taxes expense for the entire year ending December 31, 2020 totals 3,900. The full amount is due early in 2021. Required ) On the basis of information given in part (ii), record the companys December transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry. Also post the transactions to appropriate ledger accounts by using the T-account format. Furthermore, by using the information of part (i) and (ii) above, prepare an unadjusted trial balance of Slippery Slope, Inc. dated December 31, 2020. b) By using the information given in part (iii), prepare the necessary adjusting entries. Include a brief explanation as part of each adjusting entry. If no entry is required, explain why? Moreover, prepare an adjusted trial balance dated December 31, 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

28th Edition

1337902683, 978-1337902687

Students also viewed these Accounting questions