Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following are the trial balance and the other information related to Bruce Harms, who operates a construction hauling business. HARMS HAULERS Trial Balance December
The following are the trial balance and the other information related to Bruce Harms, who operates a construction hauling business. HARMS HAULERS Trial Balance December 31, 2022 Debit Credit Cash $ 39,500 Accounts Receivable 50,600 Allowance for Doubtful Accounts $ 2,750 Supplies 2,960 Prepaid Insurance 1,100 Equipment 27,000 Accumulated Depreciation Equipment 6,250 Notes Payable 7,200 Owner's Capital 45,010 Service Revenue 102,000 Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expenses 1,080 Office Expense 720 $163,210 $163.210 Instructions 1) Fees received in advance from clients $5,000. 11) Services performed for clients that were not recorded by December 31, $4,900. 111) Equipment is being depreciated at 8% per year. iv) Bad debt expense for the year is $1,430. v) Insurance expired during the year $480. vi) Harms gave the bank a 90-day, 5% note for $7,200 on December 1, 2022. vil Rent of the building is $750 per month. The rent for all of 2022, and for January of 2023 has been paid. viii) Office salaries and wages earned but unpaid December 31, 2022, $1,510. Instructions a) From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2022. (Omit explanations.) b) Prepare an income statement for 2022, a statement of owner's equity, and a classified statement of financial position. Harms withdrew $12,000 cash for personal use during the year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started