Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sijo formed a window cleaning service business in Prince George, B.C., SqueakyClean. To start the business on January 1, 2020 he deposited $2,000 in a

Sijo formed a window cleaning service business in Prince George, B.C., SqueakyClean. To start the business on January 1, 2020 he deposited $2,000 in a new bank account in the name of the proprietorship. The $2,000 consisted of a $500 loan from his father and $1,500 of his own money. Sijo rented equipment, purchased supplies, and hired other UNBC students to assist with cleaning. At the end of each month, he emailed or mailed bills to customers. On August 31, he was ready to return to university for the fall semester. Because he had been so busy, he had kept few records other than online bank statements, expense receipts and a list of amounts owed by customers. At August 31, Sijos business bank account shows a balance of $140. He has $500 to collect in cash from customers as of August 31st as well. On August 7th, he collects $5,000 from various customers. Sijo made a payment from his business bank account June 6th for supplies he kept in inventory, paying a total of $500. At August 31, he still has an inventory of cleaning products and other supplies leftover that cost a total of $200. He paid his employees $2,000 on Aug 29th and still owes them $300. His marketing campaign consisted of preparing brochures for advertising at a cost of $500 as paid on June 5th. Sijo rented some heavy duty cleaning equipment on May 1. The business signed a year long lease on the equipment and paid $600 on May 1st. Sijo had a serious accident with equipment, resulting in a replacement repair in cash of $600 for on May 30th. To transport employees, equipment and supplies a used truck and trailer was bought for $2,160 on May 1. Sijo depreciates the truck value using 30% of the assets value annually. There was a bank transfer from the business bank account to Sijos personal bank account of $100 on June 13th. Sijo also paid his father back on August 20th. Assume Sijo would like the proprietorship to continue to exist next summer. He also expects it to grow. 2. Post the journal entries to the general ledger (T-accounts). (15 marks) 3. Prepare the trial balance in the correct order (assets, liabilities, equity, revenue, expenses). (10 marks) 4. Prepare the income statement one-step. (15 marks) 5. Prepare the statement of owners equity (5 marks) 6. Prepare the balance (10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Leading The Internal Audit Function

Authors: Lynn Fountain

1st Edition

0367568004, 9780367568009

More Books

Students also viewed these Accounting questions

Question

To what extent does the respondent experience road rage?

Answered: 1 week ago