The adjusted trial balance of Jacks Financial Planners appears below and using the information from the adjusted trial balance, you are to prepare for the year ending December 31:

1. an income statement;

2. a statement of owners equity; and

3. a balance sheet.

JACKS FINANCIAL PLANNERS

Adjusted Trial Balance

December 31, 2010

_____________________________________________________________________________

Debit Credit

Cash ........................................................................................................ $ 15,200

Accounts Receivable .............................................................................. 2,200

Office Supplies ....................................................................................... 1,800

Office Equipment ................................................................................... 15,000

Accumulated DepreciationOffice Equipment .................................... $ 4,000

Accounts Payable ................................................................................... 4,000

Unearned Service Revenue .................................................................... 5,000

S. Jacks, Capital....................................................................................... 24,400

S. Jacks, Drawings .................................................................................. 2,500

Service Revenue ..................................................................................... 6,500

Office Supplies Expense ........................................................................ 600

Depreciation Expense ............................................................................. 2,500

Telephone Expense.................................................................................. 400

Wages Expense........................................................................................ 1,800

Rent Expense .......................................................................................... 1,900

$43,900 $43,900

17. (Chapter 3)

Chriss Florist Shop records all prepaid costs as assets and all revenue collected in advance as liabilities, and makes adjustments only at its fiscal year end, which is June 30^th. All of Chriss purchases are for cash unless stated otherwise. The following information relates to Chriss June 30, 2011 year end, its first year of operations.

1. On July 2^nd, 2010, Chris purchased equipment for $12,000. The equipment is expected to have a useful life of 8 years.

2. On August 1, 2010 a one-year insurance policy was purchased for $1,740.

3. On February 1, 2011 a corporate customer paid $2,080 as full payment for a one year contract for fresh flowers to be delivered to its offices every Monday morning. At June 30, 21 of the required 52 deliveries had been completed.

4. On July 2, 2010 Chris purchased enough supplies to last the entire first year of operations for $4,400. At June 30, 2011, Chris counted the supplies on hand and calculated the cost, which amounted to $1,035.

5. On May 31, Chris borrows $20,000 from the bank to increase the amount of inventory and expand the business. The interest rate on the loan is 6% and requires monthly payments of interest on the first of each month. The principal is due in one years time. The first interest payment is due July 1.

6 Chris pays her store assistant on alternate Fridays. The last pay day in June was June 20^th and the first pay day after year end July is July 4^th. The assistant worked 30 hours during this period, of which 20 were in July, and the rest in June. The assistant earns $9.50 an hour.

7. June 28^th is a busy day and Chris has to make deliveries to numerous customers. On July 5^th she reviews her June billings, and realizes that she made one large sale for $325 on June 30^th for flowers that were delivered, but for which no invoice was issued. The sale was to a regular customer who will pay promptly when the invoice is sent.

8. Chris offers customers a coupon valued at $20 every ten floral arrangements that a customer buys. At June 30^th, she reviews her records and finds that 18 customers have purchased enough flowers to claim coupons. Chris records the cost of these coupons as Coupon Expense when the customer becomes entitled to them.

Instructions:

(a) For each transaction, prepare any adjusting entries required at June 30, 2011.