Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Following Information related to month end adjustments: A. The company CPA has estimated the total Income tax for June 2021 is 30% of income

image text in transcribed
image text in transcribed
The Following Information related to month end adjustments: A. The company CPA has estimated the total Income tax for June 2021 is 30% of income before taxes which amounted to $95,100.00 B. Office supplies on hand June 30, amounted to $50,000. 1 C. On June1, 2021, Bombali INC prepaid $ 120,000 of rent for 6 months. D. Many Customer pay in advance for Accounting services; Fees of $80,000 were earned during the month of June. E. Salaries earned by employees during the last week and the half for the month of June were not recorded and not paid amounted to $49,200. F. Accounting services performed during the last week of the month of June but not yet billed or recorded amounted to $238,000. G. The Useful life of the equipment was estimated to be 4 years with a $240,000 residual value. H. On Junel, 2021 the company borrowed money from the bank by signing a $480,000, 10%, 120 months (10 years) note payable. The entire note plus 120 months interest is due on May 30, 2031. Requirement: A. For each of the above numbered paragraphs, prepare (joumalize) the adjusting entries required at June 30, 2021 including an explanation. B. Prepare the company's adjusting trial balance dated June 30, 2021 C. Prepare the income statement D. Show the effect of transactions A through H on the Income statement and Balance sheet after the adjustments were made. Use the following (Increase = 1, Decrease =D and Not Effect = NE) similar to your lab (Chapter 3) Accounts Amounts Accounting Fee Earned 700,000.00 Account Payable Accumulated Depreciation Equipment 40,000.00 6 0,000.00 137,000.00 Account Receivable Capital Stock 85,000.00 Cash 670,360.00 Dividend 45,000.00 1200,000.00 Equipment Income Tax Payable Insurance Payable 23,460.00 20,000.00 Land 400,000.00 Notes Payable Office Supplies 400,000.0 110,000.00 Prepaid Rent 144,000.00 Retaining Earning 300,000.00 89,500.00 Salary Expense Service Expense Unearned revenue 38,400.00 130,000.00 Total: 5,442,720.00

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

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

16th edition

0077664078, 978-0077664077, 78111048, 978-0078111044

More Books

Students also viewed these Accounting questions

Question

please dont use chat gpt AI 5 5 0 .

Answered: 1 week ago

Question

Communicate your results in a written report.

Answered: 1 week ago

Question

Refine your chart to communicate efficiently and effectively.

Answered: 1 week ago