Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ramona is applying for a line of credit with a local bank and has been requested to provide financial statements for the month ended

     

Ramona is applying for a line of credit with a local bank and has been requested to provide financial statements for the month ended January 31, 2023. As a result, you will need to prepare a worksheet using the unadjusted trial balance and then adjusting the balances for the following additional items prior to financial statement preparation. Since it is the policy of Computer Solutions to only record adjusting entries at year end you will not record adjusting entries in the general journal or post to the general ledger, but will instead complete a worksheet to arrive at the adjusted balances at January 31, 2023 a. The January 31 amount of computer supplies still available totals $660. b. One more month has expired since the company purchased its annual insurance policy at a $4,560 cost for 12 months of coverage. c. Lyn Addie has not been paid for nine days of work at the rate of $150 per day. d. One month has passed since any prepaid rent has been transferred to expense. e. Depreciation on the computer equipment needs to be recorded for January. The equipment is being depreciated using the straight-line method and has a useful life of seven years and salvage value of $3,700. (Round to nearest dollar.) f. Depreciation on the office equipment needs to be recorded for January. The equipment is being depreciated using the straight-line method and has a useful life of ten years and no salvage value. (Round to nearest dollar.) g. The January 31 amount of merchandise inventory still available totals $13,203. h. Based on the IFM Co. write-off in January, management maintains that the estimate that 10% of ending Accounts Receivable balance will be uncollectable is reasonable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To prepare the worksheet and financial statements lets follow the given instructions step by step Step 1 Prepare Adjusting Journal Entries Based on the information provided the adjusting journal entri... blur-text-image

Get Instant Access to Expert-Tailored 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

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions

Question

Differentiate. y = ln(3x + 1) ln(5x + 1)

Answered: 1 week ago

Question

How is the consideration transferred calculated?

Answered: 1 week ago

Question

Describe how an operations strategy is formulated.

Answered: 1 week ago