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You have been asked to prepare the financial statements for Computer Solutions for the year ended December 3 1 , 2 0 2 3 .
You have been asked to prepare the financial statements for Computer Solutions for the year ended December The following additional facts are collected for use in making adjusting entries prior to preparing financial statements at year end Round all calculations to the nearest dollar:
a Adjust interest expense on the mortgage if necessary to reflect the proper expense for Remember that mortgage was taken out on October
b Customer note receivable dated November interest due at maturity. Use day year.
c Lease with Sushi Coma began November
d Prepaid insurance balance at December was $ representing general liability insurance for January through March The general liability annual premium of $ was paid on April and debited to prepaid insurance account. One years premium was paid on October for property and liability insurance policy that began October
e Received a statement from Nusbaum Realty indicating Computer Solutions had paid rent of $ for
f R Santana estimates that of accounts receivable are uncollectible at December To comply with GAAP Computer Solutions has decided to use the allowance method of recording bad debts. Use AR balance from Part which should equal $ to calculate allowance balance
g On January R Santana billed Mason, Inc. $ for computer services completed on December
h Computer supplies of $ are on hand at December
i A physical count of merchandise inventory was completed the morning of January showing inventory on hand of $
j The following information is available relating to fixed assets at :
Computer Equipment: Acquired at a cost of $ $ residual value expected, expected life of years, straightline method of depreciation
Office Equipment: Acquired at a cost of $ $ residual value expected, expected life of years, straightline method of depreciation. Acquired at a cost of $ and an expected residual value of $ straightline method of depreciation over a year useful life.
Building: Acquired at a cost of$ and a residual value of $ Useful life is estimated at years and the straightline method of depreciation is used by Computer Solutions.
Pay careful attention to date property acquired and number of months in service during
Required:
Unadjusted December balances include:
Cash
Accounts Receivable
Inventory
Accounts Payable
Computer Services Revenue
Sales
Cost of Goods Sold
points Using the information provided, prepare the adjusting entries for Computer Solutions at December
Use the following naming convention for your adjusting entries: AJE AJE etc.
Make sure you use the correct date!
points Run a statement of Cash Flows for the year ending December and answer the following questions using Word.
Do you see a problem with this statement? Provide support for your answer to receive credit.
What was the change in the cash balance in
What assumption is QuickBooks making relating this statement?
Upload the following PDF reports from QuickBooks for grading:
December Journal
Balance Sheet at December Adjusted net income at is $
Profit and Loss Statement for January December
Trial Balance as of December
Statement of Cash Flows for January December
WORD document with answers relating to your Statement of Cash Flows
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