Problem 3 8B Communications provides telecommunications consulting services. The business had the following account balances Prepare adiun an adjusted and financial stat 00 peab PARIS COMMUNICATIONS Unadjusted Trial Balance December 1, 2017 $ 19,000 17.100 13,000 3.900 54,000 $ 0 120,000 *3.800 Cash Accounts receivable Prepaid advertising Supplies Computer equipment Accumulated amortization-computer equipment Furniture Accumulated amortization-furniture Accounts payable R. Paris, capital R. Paris, withdrawals Consulting revenue Salaries expense Supplies expense Travel expense Total 28,000 98,000 45,000 260,600 82,500 32,100 $386,600 $386,600 The following transactions occurred during December a. On December 1, paid cash for an Internet advertising consultant for four months of work in advance. The contract was for $3,200 per month. Work will begin on January 1, 2018. b. On December 10, supplies in the amount of $2.975 were purchased on account. On December 18, the company received a cash advance of $4,000 for work to be per formed starting January 1. d. On December 30, the company provided consulting services to a customer for $12,500; payment will be received in 30 days. The following adjustments information was available on December 31, 2017: e. A physical count shows $5,100 of supplies remaining on hand on December 31. The computer equipment has an expected useful life of four years with no residual value after four years. The computers were purchased on January 2, and the straight- line method of amortization is used. g. The furniture, purchased on January 2, is expected to be used for eight years with no expected value after eight years. The straight-line method of amortization is used. h. On October 1, Paris hired an advertising firm to prepare a marketing plan and agreed to pay the firm $2,200 per month. Paris paid for five months' work in advance and has made no adjusting entries for this during 2017. Record the portion of the prepayment that has been used to date. b. On December 6, supplies in the amount c. On December 15, the company received a cash advance of $8,000 IUI WUN formed starting January 1, 2018. d. On December 29, the company provided counselling services to a customer for $15,000, to be paid in 30 days. The following information was available on December 31, 2017: e. A physical count shows $7,600 of supplies remaining on hand on December 31. f. The building has an expected useful life of eight years with no expected value after eight years. The building was purchased on January 2, and the straight-line method of amortization is used. & The computer equipment, purchased on January 2, is expected to be used for four years with no expected value after four years. The straight-line method of amortization is used. h. The marketing firm has performed one-quarter of the work on the contract. i. The company's managing director, who earns $800 per day, worked the last six days of the year and will be paid on January 4, 2018. Required 1. Journalize the entries. Add new accounts if necessary 2. Prepare an adjusted trial balance on December 31, 2017 3. Prepare an income statement for the year ended December 31, 2017 List expenses in the order of dollar amount, from the greatest amount to the smallest. Chapter 3 Measuring Business Income Sacred Heart of have mercy on 4. Prepare a statement of owner's equity for the year ended December 31, 2017. Assume there have been no changes to the capital account since January 1. 5. Prepare a balance sheet at December 31, 2017. pardo des personnels de G ) e sponsable des bons como TA med Pos encar r erasou choose to 66 s'est pas monale de monde domos me more bonesborotus care dupa served e lement dans des bone ad o i das ANGESPROKU NEONSKEEPES MENE SOUS DET m dusan bola a s e promotion de UGT Sols and Sapan perante Sols and Grow soule panneau de intrusion W indparents dans un e este de dones d last minute Pro u s Canno beered by an under the e for daged, lost or stolen ouders. Vouchers are b C ay a ten shromadyamante tion or payment of lost, Stolen. e nderand whether the solenoiding d with dateer onde MODERNOS m n te de transando DESSING ed w w - to become per ordina t ing ortopedsatsastrmined NOGATA W S EMENT AU SITE DES Les boches de pedesteitiene, prodere, men e patents and Sabines ponction ONTARIO GAMING GTA L.P. references are not requireu. quirements 1 through 3. This time debit Rent Expense for the rent pas Service Revenue for the collection of revenue in advance. 4. Repeat Requirem and credit Service Re 5. Compare the accoun mpare the account balances in Require ent payment Problem 3 8B Communications provides telecommunications consulting services. The business had the following account balances Prepare adiun an adjusted and financial stat 00 peab PARIS COMMUNICATIONS Unadjusted Trial Balance December 1, 2017 $ 19,000 17.100 13,000 3.900 54,000 $ 0 120,000 *3.800 Cash Accounts receivable Prepaid advertising Supplies Computer equipment Accumulated amortization-computer equipment Furniture Accumulated amortization-furniture Accounts payable R. Paris, capital R. Paris, withdrawals Consulting revenue Salaries expense Supplies expense Travel expense Total 28,000 98,000 45,000 260,600 82,500 32,100 $386,600 $386,600 The following transactions occurred during December a. On December 1, paid cash for an Internet advertising consultant for four months of work in advance. The contract was for $3,200 per month. Work will begin on January 1, 2018. b. On December 10, supplies in the amount of $2.975 were purchased on account. On December 18, the company received a cash advance of $4,000 for work to be per formed starting January 1. d. On December 30, the company provided consulting services to a customer for $12,500; payment will be received in 30 days. The following adjustments information was available on December 31, 2017: e. A physical count shows $5,100 of supplies remaining on hand on December 31. The computer equipment has an expected useful life of four years with no residual value after four years. The computers were purchased on January 2, and the straight- line method of amortization is used. g. The furniture, purchased on January 2, is expected to be used for eight years with no expected value after eight years. The straight-line method of amortization is used. h. On October 1, Paris hired an advertising firm to prepare a marketing plan and agreed to pay the firm $2,200 per month. Paris paid for five months' work in advance and has made no adjusting entries for this during 2017. Record the portion of the prepayment that has been used to date. b. On December 6, supplies in the amount c. On December 15, the company received a cash advance of $8,000 IUI WUN formed starting January 1, 2018. d. On December 29, the company provided counselling services to a customer for $15,000, to be paid in 30 days. The following information was available on December 31, 2017: e. A physical count shows $7,600 of supplies remaining on hand on December 31. f. The building has an expected useful life of eight years with no expected value after eight years. The building was purchased on January 2, and the straight-line method of amortization is used. & The computer equipment, purchased on January 2, is expected to be used for four years with no expected value after four years. The straight-line method of amortization is used. h. The marketing firm has performed one-quarter of the work on the contract. i. The company's managing director, who earns $800 per day, worked the last six days of the year and will be paid on January 4, 2018. Required 1. Journalize the entries. Add new accounts if necessary 2. Prepare an adjusted trial balance on December 31, 2017 3. Prepare an income statement for the year ended December 31, 2017 List expenses in the order of dollar amount, from the greatest amount to the smallest. Chapter 3 Measuring Business Income Sacred Heart of have mercy on 4. Prepare a statement of owner's equity for the year ended December 31, 2017. Assume there have been no changes to the capital account since January 1. 5. Prepare a balance sheet at December 31, 2017. pardo des personnels de G ) e sponsable des bons como TA med Pos encar r erasou choose to 66 s'est pas monale de monde domos me more bonesborotus care dupa served e lement dans des bone ad o i das ANGESPROKU NEONSKEEPES MENE SOUS DET m dusan bola a s e promotion de UGT Sols and Sapan perante Sols and Grow soule panneau de intrusion W indparents dans un e este de dones d last minute Pro u s Canno beered by an under the e for daged, lost or stolen ouders. Vouchers are b C ay a ten shromadyamante tion or payment of lost, Stolen. e nderand whether the solenoiding d with dateer onde MODERNOS m n te de transando DESSING ed w w - to become per ordina t ing ortopedsatsastrmined NOGATA W S EMENT AU SITE DES Les boches de pedesteitiene, prodere, men e patents and Sabines ponction ONTARIO GAMING GTA L.P. references are not requireu. quirements 1 through 3. This time debit Rent Expense for the rent pas Service Revenue for the collection of revenue in advance. 4. Repeat Requirem and credit Service Re 5. Compare the accoun mpare the account balances in Require ent payment
