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Problem 3 8B Communications provides telecommunications consulting Service The business had the following account balances mmunications consulting services. The business ad Prepare adjusting entries an

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Problem 3 8B Communications provides telecommunications consulting Service The business had the following account balances mmunications consulting services. The business ad Prepare adjusting entries an ad usted trial balance and financial statements $ 19,000 17.100 13,000 3,900 54,000 PARIS COMMUNICATIONS Unadjusted Trial Balance December 1, 2017 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 120,000 28.000 99.000 45,000 260,600 82,500 32,100 Total S76,600 9786,600 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 52,975 were purchased on account. c. 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. f. 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. 1. The company's office manager, who earns $400 per day, worked the last five days of the year and will be paid on January 5, 2018 PARIS COMMUNICATIONS Unadjusted Trial Balance December 1, 2017 $ 19,000 17,100 13.000 3,900 54.000 120,000 Accounts receivable Prepaid advertising Supplies Computer equipment sumulated amortization computer equipment Furniture Accumulated amortization-furniture Accounts payable R. Paris, capital R Paris, withdrawals Consulting revenue Salaries expense Supplies expense Travel expense Total 25,000 9.000 45.000 260,600 82.500 32.100 $36.00 S396600 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. c 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. f. 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. i. The company's office manager, who earns $400 per day, worked the last five days of the year and will be paid on January 5, 2018 Required 1. Journalize the entries. 2. Prepare an adjusted trial balance on December 31, 2017 EC estomac Smg Prepare an income statement for the vear ended December 31, 2017. List expenses in alphabetical order. 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 Problem 3-93 Connect Air completed the following transactions during 2017: ue col- ways Oct 15 Nov. 1 Paid $10,000 for advertising and promotional material covering the four-month period ending February 15, 2018. Received $15,600 payment in advance for a series of charter flights. Revenue of $2,600 will be earned each month over the six-month period ending April 30, 2018 Required counts for Advertising Expense, Prepaid Advertising, Unearned Flign entries by debiting an asset account for Prepaid Advertising an ability account for Unearned Flight Revenue. Explanations are no 1. Open T-accounts for Advertising E Revenue, and Flight Revenue. 2. Journalize these entries by debiti by crediting a liability account for required. 3. Journalize the related adjustments at December 4. Post the entries to the T-accounts and show tments at December 31, 2017

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