Question
Reed Geophysical Company adjusts and closes its accounts at the end of the calendar year. At December 31,20-1 Reed Geographic Company Accounts Trial balance Adjustment
Reed Geophysical Company adjusts and closes its accounts at the end of the calendar year. At December 31,20-1
Reed Geographic Company
Accounts Trial balance Adjustment Income statement Balance sheet
Dr Cr Dr Cr Dr Cr Dr CR
Cash 12540
Prepaid Rent 3300
Prepaid dues & subscription 960
Supplies 1300
Equipment 20000
Accumulated Deprec: Equipment 1200
Bank Loan(1 Year loan) 5000
Unearned consulting fee 35650
Glen Reed Capital 17040
Glen Reed Drawing 27000
Consulting fee earned 90860
Salaries Expense 66900
Telephone Expense 2550
Rent Expense 11000
Miscellaneous Expense 4200
149750 149750
Other data:
a) For the first 11 months of the year, office rent had been charged to the Rent Expense account at a rate of $1000 per month. On December 1, the company signed a new rental agreement and paid 3 months in advance at a rate of $1,100 per month. The advance payment was debited to the Prepaid rent account. (Hint: December rent went up)
b) Dues and subscription expense for the year is $710
c) The unused supplies on December 31 is $450
d) Interest on bank loan amounted to $100 at the end of the year. NOT yet pay. (Hint: interest payable account)
e) The useful life of the equipment has been estimated at 10 years from date of purchase (straight line depreciation)
f) Consulting service valued at $32,550 were rendered (service was done) during the year for clients who had made payment in advance. (Hint: The advance payment was debit to Unearned revenue account.)
g) At December 31, engineering services $3000 was completed in December but was not bill.
h) Salaries earned by employees but not yet paid amounted to $2,200 at December 31 (Hint: Salaries Payable)
Sheet worksheet for the year ended December 31, 20-1 (adjustment) (Income Statement & Balance Sheets columns
Sheet 2: Income statement
Sheet 3: Balance Sheet
I want to Know how to solve this sheet and put correct balance,adjustment , income statement and closing sheet
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