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    Prepare Financial Report Assignment

    Uploaded by

    Biruk Habtamu
    Horizon Consulting began operations on May 1, 2014. The trial balance on May 31, 2014 shows assets of $34,100 equal to equity and liabilities of $34,100. Additional accounts in the chart of accounts include accumulated depreciation on equipment, salaries payable, depreciation expense, and other expenses. Adjusting entries are needed for supplies used, utilities incurred but not paid, insurance allocation, unearned revenue, salaries payable, and depreciation on equipment. An adjusted trial balance and financial statements for the year ended December 31, 2014 must be prepared.

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    Prepare Financial Report Assignment

    Uploaded by

    Biruk Habtamu
    58 views7 pages
    Horizon Consulting began operations on May 1, 2014. The trial balance on May 31, 2014 shows assets of $34,100 equal to equity and liabilities of $34,100. Additional accounts in the chart of accounts include accumulated depreciation on equipment, salaries payable, depreciation expense, and other expenses. Adjusting entries are needed for supplies used, utilities incurred but not paid, insurance allocation, unearned revenue, salaries payable, and depreciation on equipment. An adjusted trial balance and financial statements for the year ended December 31, 2014 must be prepared.

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    Horizon Consulting began operations on May 1, 2014. The trial balance on May 31, 2014 shows assets of $34,100 equal to equity and liabilities of $34,100. Additional accounts in the chart of accounts include accumulated depreciation on equipment, salaries payable, depreciation expense, and other expenses. Adjusting entries are needed for supplies used, utilities incurred but not paid, insurance allocation, unearned revenue, salaries payable, and depreciation on equipment. An adjusted trial balance and financial statements for the year ended December 31, 2014 must be prepared.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    58 views7 pages

    Prepare Financial Report Assignment

    Uploaded by

    Biruk Habtamu
    Horizon Consulting began operations on May 1, 2014. The trial balance on May 31, 2014 shows assets of $34,100 equal to equity and liabilities of $34,100. Additional accounts in the chart of accounts include accumulated depreciation on equipment, salaries payable, depreciation expense, and other expenses. Adjusting entries are needed for supplies used, utilities incurred but not paid, insurance allocation, unearned revenue, salaries payable, and depreciation on equipment. An adjusted trial balance and financial statements for the year ended December 31, 2014 must be prepared.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    1. Horizon started her own consulting firm, Horizon Consulting, on May 1, 2014.

    The trial balance at May 31 is as shown below.


    HORIZON CONSULTING
    Trial Balance
    May 31, 2014
    Debit Credit
    Cash $ 7,500
    Accounts Receivable 3,000
    Supplies 2,500
    Prepaid Insurance 3,600
    Equipment 12,000
    Accounts Payable $ 3,500
    Unearned Service Revenue 4,000
    Common Stock 19,100
    Service Revenue 7,500
    Salaries and Wages Expense 4,000
    Rent Expense 1,500 ______
    $34,10 $34,100
    0
    In addition to those accounts listed on the trial balance, the chart of accounts for Horizon
    Consulting also contains the following accounts: Accumulated Depreciation—Equipment,
    Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and
    Supplies Expense.
    Other data:
    1. $1,000 of supplies has been used during the month.
    2. Utility costs incurred but not paid are $300.

    3. The insurance policy is for 3 years.

    4. $1,500 of the balance in the Unearned Service Revenue account remains unearned at the
    end of the month.

    1 Set By Getahun F.
    5. Assume May 31 is a Tuesday and employees are paid on Fridays. Horizon Consulting has
    two employees that are paid $600 each for a 5-day work week.

    6. The equipment has a 5-year life with no salvage value and is being depreciated at $200 per
    month for 60 months.

    7. Invoices representing $1,500 of services performed during the month have not been
    recorded as of May 31.
    Instruction:
    Prepare the adjusting entries for the month of May
    Prepare an adjusted trial balance at May 31, 2014.
    Prepare Income statement, owner’s equity statement for the year ended December 31, 2014
    and Balance sheet at December 31, 2014.

    2.

    Maru PLC
    Unadjusted Trial Balance
    Sene 30, 2005
    Account Description Debit Credit
    Cash 88,000.00
    Accounts Receivable 160,000.00
    Supplies 22,000.00
    Prepaid Insurance 12,000.00
    Land (Leased for 99 years) 300,000.00
    Equipment 500,000.00
    Accumulated Depreciation-Equipment 115,000.00

    Building 2,250,000.00

    2 Set By Getahun F.
    Accumulated Depreciation-Building 880,000.00
    Account Payable 88,000.00
    VAT Payable 120,000.00
    Long Term Liabilities 560,000.00
    Common Stock 850,000.00
    Dividend 66,000.00

    Unearned Revenue 160,000.00


    Sales Earned 1,300,000.00
    Salary Expense 450,000.00
    Utilities Expense 75,000.00
    Advertising Expense 66,000.00
    Maintenance Expense 56,000.00
    Miscellaneous Expense 28,000.00
    Total 4,073,000.00 4,073,000.00

    Additional information:
    a) Supplies on hand on December 31 br 12,500
    b) Depreciation of equipment during the year br 24,000
    c) Insurance expired during the year br 6,000
    d) Salary accrued, but not paid at December 31 br 22,000
    e) Unearned revenue at December 31 br 40,000
    f) Sales earned but not billed at December 31 br 50,000
    g) Depreciation of building during the year br 24,000
    h) Estimated bad debt of the year on Account Receivable 2% or br 4,200

    Required:
    Journalize the necessary adjusting journal entries.
    Post the entries to appropriate account and prepare Adjusted Trial Balance.

    3 Set By Getahun F.
    Prepare Income Statement for the year ended Sene 30, 2005.
    Prepare Statement of Owners Equity for the year ended Sene 30, 2005.
    Prepare Balance Sheet on Sene 30, 2005

    3.

    TTS Company
    Unadjusted Trial Balance
    Dec 31, 2018
    Cash 14,500
    Accounts Receivable 11,100
    Inventory 29,000
    Prepaid Insurance 2,500
    supplies 2,500
    Equipment 395,000
    Accumulated Depreciation 12,000
    Notes Payable 6,700
    Accounts Payable 5,000
    Owner’s Capital 363,400
    Owner’s Drawings 7,600
    Sales Revenue 407,700
    Sales Returns & Allowances 25,000
    Sales Discounts 10,600
    purchase 220,000
    Utility expense 16,000
    Salary expense 41,000
    Advertising expense 20,000
    794,800 794,800

    The data needed to determine year-end adjustments are as follows:

    4 Set By Getahun F.
    a. Unexpired insurance at July 31, br. 1,240
    b. Supplies on hand at July 31, br. 810
    c. Depreciation of equipment for the year, br. 3,350
    d. Accrued salaries and wages at July 31, br. 3,780
    e. inventory on hand on July 31, br. 22,200

    Instructions
    1. Prepare adjusting journal entries and determine the balances in the accounts affected.
    3. Prepare an adjusted trial balance
    3. Prepare financial reports
    Smart Company is a small editorial services company owned and operated by Abel M. On
    July 31, 2012, the end of the current year, Smart Company's accounting clerk prepared the
    unadjusted trial balance shown below.

    4.

    Smart Company
    Unadjusted Trial Balance
    July 31, 2012

    Cash Dr. 5,150


    Accounts Receivable Dr. 46,780
    Prepaid Insurance Dr. 8,720
    Supplies Dr. 2,380
    Land Dr. 140,260
    Building Dr. 248,200
    Accumulated Depreciation- Building Cr. 168,090
    Equipment Dr 165,320
    Accumulated Depreciation - Equipment Cr. 119,720
    Accounts Payable Cr. 14,670
    Unearned Rent Cr. 8,330
    Abel M., Capital Cr. 272,300
    Abel M., Drawing Dr. 18,240
    Fees Earned Cr. 396,440

    5 Set By Getahun F.
    6 Set By Getahun F.
    7 Set By Getahun F.

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