Question 6 119 marks TC Inc. is a leading consulting firm with its head office in Science Park, Beljing, which closes its accounting books every month. In the month of October 2021, the following transactions occur in TC Inc. 1. (October 1) Provided consulting service to Shenzhen cqmpany. The total price of the service is $50,000. The company sent the bill to Shenzhen company today. To promote early payment of the bill, the company uses 1/10, n/30 conditions for credit transactions. (Hint: Use consulting fee revenue account rather than sales) 2. (October 1st Paid $600 for a one-year insurance policy that will expire next year on September 30, 2022. 3. (October 1st Received $1,200 in cash in advance from HHH Company, a client. Equal amount of consulting service will be provided to this client in the months of October, November and December of 2021 4. (October 5th) Office supplies are purchased for $2,500 on account and the company treated it as Supplies Inventory 5. (October 7th) Shenzhen company pays half of the bill for the transaction occurred on October 1, 2021), 6. (October 20th) The board of directors declares a $500 cash dividend to stockholders. The dividend will be paid on November 19, 2021. 7. (October 26th) Sales and administrative employee salaries of 4,000a reincurred. Amongthem, 3,000 is paid in cash. The remaining balance will be paid next month 8. (October 29th) The president of Shenzhen company announced that the company is not able to pay any debt and declared bankruptcy. The allowances for the bad debt account had 20,000 (credit) balance at the beginning of October Required Enter the Journal Entries (except adjusting entries, which should be shown in part ii) for all the above transactions (without explanations, but write the serial number just before the date, eg. 1) October 14.) Itotal 11 marks) ) At the end of October 2021, the company finds out that only 1,000 worthof suppliesareleft(Therewamobalanceofthebeginningofthemonthinthesuppliesaccount) 10, Theresthashenusein October, 2021 ThemanagementofTcinc whichussthepercentageofereditsolesmethod forboddeltaestimation, believesthathaddebiterpense for October 2021uillamonto 000. Using the information provided, prepare all the necessary adjustment entries (without explanations). (Hint there are exactly 4 adjusting entries needed at the end of October, 2021) (total 8 marks Question 6 119 marks) TC Inc. is a leading consulting firm with its head office in Science Park, Beijing, which closes its accounting books every month. In the month of October 2021, the following transactions occur in TC Inc. 1. (October 15t) Provided consulting service to Shenzhen company. The total price of the service is $50,000. The company sent the bill to Shenzhen company today. To promote early payment of the bill, the company uses 1/10, n/30 conditions for credit transactions. (Hint: Use consulting fee revenue account rather than sales) 2. (October 1st) Paid $600 for a one-year insurance policy that will expire next year on September 30, 2022. 3. (October 19) Received $1,200 in cash in advance from HEH Company, a client. Equal amount of consulting service will be provided to this client in the months of October November and December of 2021. 4. (October 5th) Office supplies are purchased for $2,500 on account and the company treated it as Supplies Inventory 5. (October 7th) Shenzhen company pays half of the bill (for the transaction occurred on October 19, 2021). 6. (October 20th) The board of directors declares a $500 cash dividend to stockholders. The dividend will be paid on November 19, 2021. 7. (October 26th) Sales and administrative employee salaries of 4,000areincurred. Amongthem, 3,000 is paid in cash. The remaining balance will be paid next month. 8. (October 29th) The president of Shenzhen company announced that the company is not able to pay any debt and declared bankruptcy. The allowances for the bad debt account had 20,000 (credit) balance at the beginning of October Required 3) Enter the Journal Entries (except adjusting entries, which should be shown in part ii) for all the above transactions (without explanations, but write the serial number just before the date, eg. 1) October 1st...) [total 11 marks] At the end of October 2021, the company finds out that only 1,000 worthof suppliesareleft(Therewasnobalanceatthebeginningofthemonthinthesuppliesaccount) TheresthasbeenusedinOctober, 2021. ThemanagementofTCInc., whichusesthepercentagcofcreditsalesmethod forbaddebtsestimation, believesthatbaddebterpense for October 2021 willamountto 000. Using the information provided, prepare all the necessary adjustment entries (without explanations). (Hint: there are exactly 4 adjusting entries needed at the end of October, 2021) (total 8 marks) 10
