Rhoades Tax Services began business on December 1, 2015. Its December transactions are as follows. Dec Rhoades invested $20,000 in the business in exchange for common stock. Paid $1,200 cash for December rent to Bomba Realty. 2 Purchased $1,080 of supplies on account. 2 Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. Paid $1,080 cash on account for supplies purchased December 2. 14 Paid $900 cash for assistant's wages for 2 weeks' work 20 Performed consulting services for $3,000 cash. 28 Paid $900 cash for assistant's wages for 2 weeks' work. 30 Billed clients $7,200 for December consulting services. Paid $1,800 cash for dividends. 31 1. Supplies available at December 31 are $710. 2. Accrued wages payable at December 31 are $270. 3. Depreciation for December is $120. 4. Rhoades has spent 30 hours on an involved tax fraud case during December. When completed in January, his work will be billed at $75 per hour. (It uses the account Fees Receivable to reflect amounts earned but not yet billed.) Then post adjusting entries to their T-accounts. a (2). Record any adjusting entries using the financial statement effects template. Balance Sheet Contributed Earned Noncash Transaction Cash Asset Liabilities Contra-Assets Capital Capital Assets 1 $ 2 3 4 TOTALS Income Statement Revenues Expenses Net Income $ $ $ II e. Journalize the adjusting entries at December 31 in journal entry form, drawing on the information above. Then post adjusting entries to their T-accounts and prepare an adjusted trial balance at December 31, 2015 c. Record the above transactions in journal entry form and post these entries to their T-accounts (key numbers in T-accounts by date). GENERAL JOURNAL Debit Credit Date Description 12/1 To record investment in the business. 12/2 a To record December rent payment 12/2 b To record purchases of various supplies on account 12/3 Accounts Payable To record purchase of office equipment. 12/8 To record payments on account. 12/14 To record payment of assistant's wages 12/20 To record cash received for services 12/28 To record payment of assistant's wages. 12/30 To record customers billed for services. f. Prepare a December 2015 income statement and statement of stockholders' equity, and a December 31, 2015, balance sheet. RHOADES TAX SERVICES Income Statement For the Month of December 31, 2015 Revenue Consulting Revenue Expenses: Wages Expense Rent Expense Supplies Expense Depreciation Expense Total Expenses Net Income RHOADES TAX SERVICES Statement of Stockholders' Equity December 31, 2015 Total Retained Stockholders' Common Stock Earnings Equity Balance at December 1, 2015 Stock Issuance Dividends (enter as negative) Net Income Balance at December 31, 2015 tA A RHOADES TAX SERVICES Balance Sheet December 31, 2015 Liabilities and Equity Assets Fees Receivable Wages Payable Supplies Total Liabilities Total Current Assets Stockholders' Equity Less Accum. Depreciation Total Assets Total Liabilities and Stockholders' Equit g. Record its closing entries in journal entry form. Post these entries to their T-accounts above in part e. GENERAL JOURNAL Description Debit Credit Date 12/31 To close the revenue account 12/31 6 Wages Expense Rent Expense Supplies Expense To close the expense accounts. h. Prepare a post-closing trial balance at December 31, 2015 RHOADES TAX SERVICES Post-Closing Trial Balance December 31, 2015 Debit Credit Cash Fees Receivable Supplies Office Equipment Accumulated Depreciation Accounts Payable Wages Payable Retained Earnings Common Stock A
