Required: Part A - Prepare journal entries for the December transactions.
Jeremy records adjustments monthly. Adjustment data for the month of December is as follows:
Accrual of interest on bank loan (calculate on 31 days and round to nearest dollar)
Adjustment of prepaid rent
Computer equipment depreciation, using the straight-line method of depreciation
Supplies were counted on December 31and there was $540 of supplies remaining.
Salary for the Admin Assistant to the end of the month (5 days)
Required: Part B - Prepare all adjusting journal entries.
Required: Part C - Post all journal entries to T accounts
Required: Part D - Prepare an adjusted trial balance as at December 31 2017.
Required: Part E - Prepare an Income Statement, Statement of Changes in Equity and classified Statement of Financial Position for the Company's bank to review.
Required Part F - Prepare the closing journal entries and post to T accounts.
Jeremy Johnson incorporated a consulting rm named Johnson's Consulting Ltd. in December 201?. He found out that you have been taking an accounting course and has asked you for assistance in preparing the nancial information for his banker {who has asked for financial statements}. He has decided on a December 31 year-end. Dec 1 Dec 1 Dec 1 Dec 1 Dec 4 Dec 5 Dec Eu Dec 11 Dec 13 Dec 15 The Company issued common shares to Jeremy for $5,000 cash. A business loan was approved by the bank for $10,000, which was deposited into the Companfs bank account on the same day. The loan bears interest at 5% per annum payable on the rst day of each month. The loan principal is due in 2 years. Jeremy was able to find suitable office space available immediately and the company paid 6 months rent in advance for $4,500. Jeremy purchased a new computer on account for the Company for $2,400. The total invoite is due onJanuary 15' at which time it will be paid. The computer is expected to last 2 years [24 months] at which time it will have a zero value. The Company paid $800 cash for supplies. Jeremy hired Harris Advertising Agency to prepare advertising brochures for the Company. These were delivered the same day and the Company paid them $1,300 cash. All ofthese brochures were delivered to prospective clients. Customer #1 hired Jeremy to prepare a consulting report. Jeremy completed consulting services for Customer #1 and received $1.500 cash. Customer #2 hired Jeremy for a oonsultingjob totaling $13,500. Jeremy expects it will take him a couple of weeks to complete the work. Because of the successful first few weeks, Jeremy hired an Administrative Assistant to organize the ofce. The Admin Assistant has agreed to a biweekly salary of $500, which is to be paid every second Friday with the rst pay-cheque due on December 22. {The work week is Monday to Friday]. (Hint: you will need ajournal entry to record the payment of the Admin Assistant's salary on December 22 for days}. Dec 2? Jeremy completed the work for Customer #2 and the Admin Assistant sent out an invoice to bill the customer. Dec 29 Customer #3 hiredJeremy for a month-long project expected to bring in $23,000 in revenue. Because of the length of time before completion,Jeremy asked for and received a deposit from the client for half of the amount. Jeremy does not expect to do any work on this project until after the end of the year. Dec 31 In order to pay off Jeremy's personal credit card tor his Christmas shopping and to celebrate the success of the first month, the Company declared a dividend of $1.000 to be paid on December 31. Required: Part A Prepare journal entries tor the December transactions. Jeremy reoords adjustments monthly. Adjustment data for the month of December is as follows: Accrual oi interest on bank loan [calculate on 31 days and round to nearest dollar} Adjustment of prepaid rent Computer equipment depreciation, using the straightline method oi depreciation Supplies were counted on December 31and there was $540 of supplies remaining. Salaryr for the Admin Assistant to the end of the month [5 days] Required: Part B Prepare all adjusting journal entries. Required: Part C Post all journal entries to T accounts Required: Part D Prepare an adjusted trial balance as at December 31 201?. Required: Part E Prepare an Income Statement' Statement of Changes in Equity and classied Statement of Financial Position for the Company's bank to review. Required Part F Prepare the closing journal entries and post to T accounts
