Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

tech.ca Part I - Business Bookkeeping (17 marks) Stephanie Deaville is the owner of Beta Services. She has hired you to update the transactions for

image text in transcribed
image text in transcribed
tech.ca Part I - Business Bookkeeping (17 marks) Stephanie Deaville is the owner of Beta Services. She has hired you to update the transactions for her business. Stephanie has provided you with the opening balances and a list of transactions for the month of June. The opening balances for the month of June are as follows: Beta Services Balance Sheet As at May 31, 2020 Assets Liabilities Cash $20,000 Accounts Payable Accounts Receivable 9,500 Unearned Revenue Prepaid Insurance 0 Note Payable Supplies on hand 800 Equipment 10,000 Accumulated Depreciation (4,000) Total Liabilities Owner's Equity Deaville, Capital Total Assets $36,300 Total Liabilities & Owners' Equity $11,000 5,200 6,300 22,500 13,800 $36,300 Transactions for the month of June: Stephanie transferred personal equipment into the business. The equipment had a fair value Jun 1 of $32,000 Jun 4 Received $80,000 cash for services provided. Jun 7 Received $4,800 cash for services to be provided next year. Jun 10 Paid insurance of $9,600 for the upcoming year. Paid $9,200 cash to reduce the balance of accounts payable. Jun 15 Paid payroll worth $31,200. Jun 18 Paid $1400 interest on the note payable. Jun 23 Received telephone bill for $2200 which will be paid next month. Jun 25 Recorded business travel expenses worth $17,200 which will be paid next month. Purchased $1280 of supplies for cash. Jun 12 Jun 30 REQUIRED: 1. Journalize the transactions using proper bookkeeping format. Use the general journal on the following pages. (12 marks) 2. Post only the cash transactions to the general ledger found on page 5. (5 marks) Acct 122 - Introductory Financial Accounting Fall 2020 Part II - Financial Statements (11 marks) The alphabetized, adjusted trial balance for Zood Services' at the Dec 31, 2020 year-end is as follows. Account Title Accounts Payable Accounts Receivable Accumulated Depreciation, equipment Cash Depreciation Expense Equipment Interest Expense Note Payable (Note 1) Office Supplies Prepaid Insurance Rent Expense Salaries Expense Service Revenue Steve, Capital (Note 2) Steve, Withdrawals Unearned Revenue Total Debit Credit $26,800 18,400 144,000 209,200 24,000 440,000 30,400 120,000 3,200 4,000 60,000 200,000 546,400 200,000 80,000 32,000 $1,069,200 $1,069,200 Note 1: The note payable is payable in 5 annual payments beginning Jan 1, 2021. Note 2: The owner invested $40,000 of his own money in 2020 REQUIRED: Using the following answer sheets, create a(n): 1. Income Statement (2.5 marks) 2. Statement of Changes in Equity (2 marks) 3. Classified Balance Sheet (6.5 marks) Ensure to use proper formatting

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

Report On Trade Conditions In China

Authors: Harry R. Burrill, Raymond F. Crist

1st Edition

1138617806, 9781138617803

More Books

Students also viewed these Accounting questions

Question

6.66 Find zo such that P(-zo

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago