READ EVERYTHING AND ADDRESS ALL QUESTIONS! LABEL EVERYTHING
Accounting Comprehensive Problem 1.
1. Create a Journal
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Get Help Now!1. C. | Journalize each of the May transactions in the two-column journal starting on Page 5 of the journal. Refer to the Chart of Accounts for exact wording of account titles. (Do not insert the account numbers in the journal at this time.) | ||||||
2. B. | Add the appropriate posting reference to the journal in CengageNOW. | ||||||
6. A. | Journalize the adjusting entries on Page 7 of the journal. Refer to the Chart of Accounts for exact wording of account titles. | ||||||
6. C. | Add the appropriate posting reference to the journal in CengageNOW.
2. Create A Ledger SPREADSHEET and save the Excel file to your computer. Use the spreadsheet to post the May transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.
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3. Prepape a Unadjusted Trial Balance
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions:
May | 3 | Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,500. |
5 | Received cash from clients on account, $2,450. | |
9 | Paid cash for a newspaper advertisement, $225. | |
13 | Paid Office Station Co. for part of the debt incurred on April 5, $640. | |
15 | Provided services on account for the period May 1–15, $9,180. | |
16 | Paid part-time receptionist for two weeks’ salary including the amount owed on April 30, $750. | |
17 | Received cash from cash clients for fees earned during the period May 1–16, $8,360. |
Record the following transactions on Page 6 of the journal:
May | 20 | Purchased supplies on account, $735. | |||||||||||
21 | Provided services on account for the period May 16–20, $4,820. | ||||||||||||
25 | Received cash from cash clients for fees earned for the period May 17–23, $7,900. | ||||||||||||
27 | Received cash from clients on account, $9,520. | ||||||||||||
28 | Paid part-time receptionist for two weeks’ salary, $750. | ||||||||||||
30 | Paid telephone bill for May, $260. | ||||||||||||
31 | Paid electricity bill for May, $810. | ||||||||||||
31 | Received cash from cash clients for fees earned for the period May 26–31, $3,300. | ||||||||||||
31 | Provided services on account for the remainder of May, $2,650. | ||||||||||||
31 | Kelly withdrew $10,500 for personal use. | ||||||||||||
Required: | |||||||||||||
1. | The chart of accounts is shown in a separate panel and the post-closing trial balance as of April 30, 2019, is shown below.
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2. | Post the journal entries on pages 5 and 6 of the journal to the ledger of four-column accounts.
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3. | Prepare an unadjusted trial balance. Accounts with zero balances can be left blank. | ||||||||||||
4. | At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
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5. | (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. | ||||||||||||
6. |
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7. | Prepare an adjusted trial balance. Accounts with zero balances can be left blank. |
Kelly Consulting
POST-CLOSING TRIAL BALANCE
April 30, 2019
ACCOUNT TITLE | DEBIT | CREDIT | |
1 | Cash | 22,100.00 | |
2 | Accounts Receivable | 3,400.00 | |
3 | Supplies | 1,350.00 | |
4 | Prepaid Rent | 3,200.00 | |
5 | Prepaid Insurance | 1,500.00 | |
6 | Office Equipment | 14,500.00 | |
7 | Accumulated Depreciation | 330.00 | |
8 | Accounts Payable | 800.00 | |
9 | Salaries Payable | 120.00 | |
10 | Unearned Fees | 2,500.00 | |
11 | Kelly Pitney, Capital | 42,300.00 | |
12 | Totals | 46,050.00 | 46,050.00 |
ANSWER ALL QUESTIONS IN FIELD: READ CAREFULLY PLEASE LABEL EACH QUESTION
Question 1
Classifying Accounts
Balances for each of the following accounts appear in an adjusted trial balance. Identify each as an asset, liability, revenue, or expense.
1. Accounts Receivable | |
2. Equipment | |
3. Fees Earned | |
4. Insurance Expense | |
5. Land | |
6. Prepaid Rent | |
7. Rent Revenue | |
8. Salary Expense | |
9. Salary Payable | |
10. Supplies | |
11. Unearned Rent | |
12. Wages Payable |
Question 2
Financial Statements from the End-of-Period Spreadsheet
Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 2019:
Elliptical Consulting | ||||||||
End-of-Period Spreadsheet | ||||||||
For the Year Ended June 30, 2019 | ||||||||
Unadjusted | Adjusted | |||||||
Trial Balance | Adjustments | Trial Balance | ||||||
Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||
Cash | 27,000 | 27,000 | ||||||
Accounts Receivable | 53,500 | 53,500 | ||||||
Supplies | 3,000 | (a) | 2,100 | 900 | ||||
Office Equipment | 30,500 | 30,500 | ||||||
Accumulated Depreciation | 4,500 | (b) | 1,500 | 6,000 | ||||
Accounts Payable | 3,300 | 3,300 | ||||||
Salaries Payable | (c) | 375 | 375 | |||||
Jayson Neese, Capital | 82,200 | 82,200 | ||||||
Jayson Neese, Drawing | 2,000 | 2,000 | ||||||
Fees Earned | 60,000 | 60,000 | ||||||
Salary Expense | 32,000 | (c) | 375 | 32,375 | ||||
Supplies Expense | (a) | 2,100 | 2,100 | |||||
Depreciation Expense | (b) | 1,500 | 1,500 | |||||
Miscellaneous Expense | 2,000 | 2,000 | ||||||
150,000 | 150,000 | 3,975 | 3,975 | 151,875 | 151,875 |
Based on the preceding spreadsheet, prepare an income statement for Elliptical Consulting.
Elliptical Consulting | ||
Income Statement | ||
For the Year Ended June 30, 2019 | ||
$ | ||
Expenses: | ||
$ | ||
Total expenses | ||
$ |
Based on the preceding spreadsheet, prepare a statement of owner’s equity for Elliptical Consulting.
Elliptical Consulting | ||
Statement of Owner’s Equity | ||
For the Year Ended June 30, 2019 | ||
$ | ||
$ | ||
$ |
Based on the preceding spreadsheet, prepare a balance sheet for Elliptical Consulting.
Elliptical Consulting | ||
Balance Sheet | ||
June 30, 2019 | ||
Assets | ||
Current assets: | ||
$ | ||
Total current assets | $ | |
Property, plant, and equipment: | ||
$ | ||
Total property, plant, and equipment | ||
Total assets | $ | |
Liabilities | ||
Current liabilities: | ||
$ | ||
Total liabilities | $ | |
Owner’s Equity | ||
Total liabilities and owner’s equity | $ |
Question 3:
Income Statement; Net Loss
The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the accounts had been adjusted on February 28, 2019, the end of the fiscal year:
Depreciation Expense | $7,500 |
Insurance Expense | 3,000 |
Miscellaneous Expense | 8,150 |
Rent Expense | 54,000 |
Service Revenue | 448,400 |
Supplies Expense | 2,750 |
Utilities Expense | 33,900 |
Wages Expense | 360,000 |
Prepare an income statement. Use a minus sign to indicate a net loss.
Wholistic Health Services Co. | ||
Income Statement | ||
For the Year Ended February 28, 2019 | ||
$ | ||
Expenses: | ||
$ | ||
Total expenses | ||
Question 4:
Statement of Owner’s Equity
Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal yearended December 31, 2019, are as follows:
Bart Nesbit, Capital | Bart Nesbit, Drawing | |||||||
Dec. 31 | 90,000 | Jan. 1 (2019) | 1,375,000 | Mar. 31 | 22,500 | Dec. 31 | 90,000 | |
Dec. 31 | 355,000 | June 30 | 22,500 | |||||
Sept. 30 | 22,500 | |||||||
Dec. 31 | 22,500 |
Prepare a statement of owner’s equity for the year.
Apex Systems Co. | ||
Statement of Owner’s Equity | ||
For the Year Ended December 31, 2019 | ||
$ | ||
$ | ||
$ |
Question 5:
Balance Sheet Classification
At the balance sheet date, a business owes a mortgage note payable of $375,000, the terms of which provide for monthly payments of $1,250.
How should the liability be classified on the balance sheet?
Current liability: $ Long-term liability: $
Question 6:
Balance Sheet
Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows:
Accounts Payable | $37,700 |
Accounts Receivable | 116,750 |
Accumulated Depreciation – Equipment | 186,400 |
Cash | ? |
Equipment | 474,150 |
Land | 300,000 |
Prepaid Insurance | 7,200 |
Prepaid Rent | 21,000 |
Salaries Payable | 9,000 |
Cheryl Viers, Capital | 710,300 |
Supplies | 4,800 |
Unearned Fees | 18,000 |
Prepare a classified balance sheet that includes the correct balance for Cash.
Optimum Weight Loss Co. | |||
Balance Sheet | |||
November 30, 2019 | |||
Assets | |||
Current assets: | |||
$ | |||
Total current assets | $ | ||
Property, plant, and equipment: | |||
$ | |||
$ | |||
Total property, plant, and equipment | |||
Total assets | $ | ||
Liabilities | |||
Current liabilities: | |||
$ | |||
Total liabilities | $ | ||
Owner’s Equity | |||
Total liabilities and owner’s equity | $ |
Question 7:
Closing Entries
Prior to closing, total revenues were $12,840,000 and total expenses were $9,975,000.
During the year, the owner made no additional investments and withdrew $630,000. After the closing entries, how much did the owner’s capital account change?
$ |
Question 8:
Post-Closing Trial Balance
An accountant prepared the following post-closing trial balance:
La Casa Services Co. Post-Closing Trial Balance March 31, 2019 | ||||
Debit Balances | Credit Balances | |||
Cash | 46,540 | |||
Accounts Receivable | 122,260 | |||
Supplies | 4,000 | |||
Equipment | 127,200 | |||
Accumulated Depreciation – Equipment | 33,600 | |||
Accounts Payable | 52,100 | |||
Salaries Payable | 6,400 | |||
Unearned Rent | 9,000 | |||
Sonya Flynn, Capital | 198,900 | |||
462,400 | 137,600 |
Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct. If an amount box does not require an entry, leave it blank.
La Casa Services Co. | ||
Post-Closing Trial Balance | ||
March 31, 2019 | ||
Debit Balances | Credit Balances | |
Cash | ||
Accounts Receivable | ||
Supplies | ||
Equipment | ||
Accumulated Depreciation-Equipment | ||
Accounts Payable | ||
Salaries Payable | ||
Unearned Rent | ||
Sonya Flynn, Capital | ||
Question 9:
Working Capital and Current Ratio
The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:
December 31 | ||||
Year 2 | Year 1 | |||
Current assets | $1,498,763 | $1,549,399 | ||
Current liabilities | 478,810 | 421,627 |
a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round “current ratio” answers to two decimal places.
December 31 | ||
Year 2 | Year 1 | |
Working capital | $ | $ |
Current ratio |
b. What conclusions concerning the companys ability to meet its financial obligations can you draw from part (a)? Under Armour’s working capital by $ during Year 2. The current ratio in Year 2. Because year 2’s current ratio indicates a liquidity position, the short-term creditors concerned about receiving payment from Under Armour.
Question 10:
Appendix: Adjustment Data on an End-of-Period Spreadsheet
Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019. In addition, the data for year-end adjustments are as follows:
a. Fees earned, but not yet billed, $13.
b. Supplies on hand, $4.
c. Insurance premiums expired, $10.
d. Depreciation expense, $3.
e. Wages accrued, but not paid, $1.
Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. If a box does not require an entry, leave it blank.
Alert Security Services Co. | ||||||
End-of-Period Spreadsheet (Work Sheet) | ||||||
For the Year Ended October 31, 2019 | ||||||
Account Title | Unadjusted Trial Balance Debit | Unadjusted Trial Balance Credit | Adjustments Debit | Adjustments Credit | Adjusted Trial Balance Debit | Adjusted Trial Balance Credit |
Cash | 12 | |||||
Accounts Receivable | 90 | |||||
Supplies | 8 | |||||
Prepaid Insurance | 12 | |||||
Land | 190 | |||||
Equipment | 50 | |||||
Accum. Depr.-Equipment | 4 | |||||
Accounts Payable | 36 | |||||
Wages Payable | 0 | |||||
Brenda Schultz, Capital | 260 | |||||
Brenda Schultz, Drawing | 8 | |||||
Fees Earned | 200 | |||||
Wages Expense | 110 | |||||
Rent Expense | 12 | |||||
Insurance Expense | 0 | |||||
Utilities Expense | 6 | |||||
Supplies Expense | 0 | |||||
Depreciation Expense | 0 | |||||
Miscellaneous Expense | 2 | |||||
Totals | 500 | 500 |
Question 11:
Identify Journals
Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the following transactions should be recorded:?
from the list. | |
a. Receipt of cash refund from overpayment of taxes. | |
b. Adjustment to record accrued salaries at the end of the year. | |
c. Providing services on account. | |
d. Investment of additional cash in the business by the owner. | |
e. Receipt of cash on account from a customer. | |
f. Receipt of cash for rent. | |
g. Receipt of cash from sale of office equipment. | |
h. Sale of used office equipment on account, at cost, to a neighboring business. | |
i. Closing of drawing account at the end of the year. | |
j. Providing services for cash. |
Question 12:
Prepare Journal Entries in a Revenue Journal
Horizon Consulting Company had the following transactions during the month of October:
Oct. 2. | Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $595. |
Oct. 3. | Issued Invoice No. 322 to Armor Inc. for services rendered on account, $310. |
Oct. 14. | Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $205. |
Oct. 24. | Issued Invoice No. 324 to Rose Co. for services rendered on account, $850. |
Oct. 29. | Collected Invoice No. 321 from Pryor Corp. |
a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format:
REVENUE JOURNAL | ||||
DATE | Invoice No. | Account Debited | Post. Ref. | Accounts Rec. Dr. Fees Earned Cr. |
Oct. 2 | ||||
Oct. 3 | ||||
Oct. 14 | ||||
Oct. 24 | ||||
Oct. 31 |
b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October?
Accounts receivable | $ |
Fees earned | $ |
c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1? $
Question 13:
Accounts Receivable Subsidiary Ledger
The revenue journal and cash receipts journal for Polaris Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $3,790 consisting of an amount due from Clear Pointe Studios Inc.
REVENUE JOURNAL | Page 16 | ||||
Date | Invoice No. | Account Debited | Post Ref. | Accounts Rec. Dr. Fees Earned Cr. | |
20Y4 | |||||
Jan. 6 | 1 | Echo Broadcasting Co. | ✔ | 2,300 | |
Jan. 14 | 2 | Gold Coast Media Inc. | ✔ | 5,100 | |
Jan. 22 | 3 | Echo Broadcasting Co. | ✔ | 2,980 | |
Jan. 25 | 4 | Clear Pointe Studios Inc. | ✔ | 1,650 | |
Jan. 29 | 5 | Amber Communications Inc. | ✔ | 3,650 | |
Jan. 31 | 15,680 | ||||
(12)(41) |
CASH RECEIPTS JOURNAL | Page 36 | ||||||
Date | Account Credited | Post Ref. | Fees Earned Cr. | Accounts Rec. Cr. | Cash Dr. | ||
20Y4 | |||||||
Jan. 6 | Clear Pointe Studios Inc. | ✔ | — | 3,790 | 3,790 | ||
Jan. 11 | Fees Earned | 3,200 | 3,200 | ||||
Jan. 18 | Echo Broadcasting Co. | ✔ | — | 2,300 | 2,300 | ||
Jan. 28 | Gold Coast Media Inc. | ✔ | — | 5,100 | 5,100 | ||
Jan. 31 | 3,200 | 11,190 | 14,390 | ||||
(41) | (12) | (11) |
Prepare a listing of the accounts receivable customer balances and verify that the total agrees with the ending balance of the accounts receivable controlling account. If an amount is zero, enter “0”.
Polaris Productions Inc. | |
Accounts Receivable Customer Balances | |
January 31, 20Y4 | |
Amber Communications Inc. | $ |
Clear Pointe Studios Inc. | |
Echo Broadcasting Co. | |
Gold Coast Media Inc. | |
Total accounts receivable | $ |
Polaris Productions Inc. | |
Accounts Receivable | |
Controlling | |
Balance, January 1, 20Y4 | $ |
Total debits (from revenue journal) | |
Total credits (from cash receipts journal) | |
Balance, January 31, 20Y4 | $ |
Question 14:
Show Me How
Calculator
Revenue and Cash Receipts Journals
Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows:
Mar. 2. | Issued Invoice No. 512 to Santorini Co., $905. |
Mar. 4. | Received cash from CMI Inc., on account, for $205. |
Mar. 8. | Issued Invoice No. 513 to Gabriel Co., $220. |
Mar. 12. | Issued Invoice No. 514 to Yarnell Inc., $845. |
Mar. 19. | Received cash from Yarnell Inc., on account, $555. |
Mar. 20. | Issued Invoice No. 515 to Electronic Central Inc., $195. |
Mar. 28. | Received cash from Marshall Inc. for services provided, $160. |
Mar. 29. | Received cash from Santorini Co. for Invoice No. 512 of March 2. |
Mar. 31. | Received cash from McCleary Co. for services provided, $85. |
Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Enter the transactions in chronological order.
REVENUE JOURNAL | ||||
DATE | Invoice No. | Account Debited | Post. Ref. | Accounts Rec. Dr. Fees Earned Cr. |
20Y8 | ||||
Add DAtes | List accounts | ✔ | ||
✔ | ||||
✔ | ||||
✔ | ||||
Total |
If an amount box does not require an entry, leave it blank.
CASH RECEIPTS JOURNAL | PAGE 12 | ||||
DATE | Account Credited | Post. Ref. | Fees Earned Cr. | Accounts Rec. Cr. | Cash Dr. |
20Y8 | |||||
Add dates | List accounts | ✔ | |||
✔ | |||||
✔ | |||||
Total |
Question 15:
Identify transactions in accounts payable subsidiary ledger
The debits and credits from three related transactions are presented in the following creditor’s account taken from the accounts payable ledger:
NAME | Apex Performance Co. | ||||
ADDRESS | 101 W. Stratford Ave. | ||||
Date | Item | Post. Ref. | Debit | Credit | Balance |
20Y7 | |||||
June 6 | P49 | 12,000 | 12,000 | ||
June 14 | J12 | 150 | 11,850 | ||
June 16 | CP23 | 11,850 | — |
Describe each transaction (Purchase on account, paid on, sold on, received on, corrected error or received allowance , and identify the source(purchase journal, cash receipts journal, cash payemnts journal, revenue journal, general journal) of each posting.
Date | Describe Transaction | Transaction Source |
June 6 | ||
June 14 | ||
June 16 |
Question 16:
Prepare Journal Entries in a Purchases Journal
Guardian Services Inc. had the following transactions during the month of April:
Apr. 4. | Purchased office supplies from Officemate Inc. on account, $415. |
Apr. 9. | Purchased office equipment on account from Tek Village Inc., $2,460. |
Apr. 16. | Purchased office supplies from Officemate Inc. on account, $185. |
Apr. 19. | Purchased office supplies from Paper-to-Go Inc. on account, $195. |
Apr. 27. | Paid invoice on April 4 purchase from Officemate Inc. |
a. Prepare a purchases journal to record the April purchase transactions for Guardian Services Inc. If an amount box does not require an entry, leave it blank.
If no entry is required in “Other Accounts Dr.” then select “No entry required”.
PURCHASES JOURNAL | |||||||
DATE | Account Credited | Post. Ref. | Accounts Payable Cr. | Office Supplies Dr. | Other Accounts Dr. | Post. Ref. | Amount |
Apr. 4 | |||||||
Apr. 9 | |||||||
Apr. 16 | |||||||
Apr. 19 | |||||||
Apr. 30 | Total |
b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April?
Credit to accounts payable | $ |
Debit to office supplies | $ |
c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1? $
Question 17:
Segment Revenue Horizontal Analysis
Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year:
Recent Year (in millions, rounded) | Prior Year (in millions, rounded) | |||
Americas | $13,293 | $11,980 | ||
EMEA* | 1,217 | 1,295 | ||
China/Asia Pacific | 2,396 | 1,130 | ||
Channel Development** | 1,731 | 1,546 | ||
Other | 526 | 497 | ||
Total | $19,163 | $16,448 |
*Europe, Middle East, and Africa
**Sells packaged coffee and teas globally
a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreases values.
Starbucks Corporation | ||||
Horizontal Analysis | ||||
Recent Year (in millions) | Prior Year (in millions) | Increase (Decrease) Amount | Increase (Decrease) Percent | |
Americas | $13,293 | $11,980 | $ | % |
EMEA | 1,217 | 1,295 | % | |
China/Asia Pacific | 2,396 | 1,130 | % | |
Channel Development | 1,731 | 1,546 | % | |
Other | 526 | 497 | % | |
Total revenues | $19,163 | $16,448 | $ | % |
b. Prepare a vertical analysis of the segment data. Round all percents to one decimal place.
Starbucks Corporation | ||||
Vertical Analysis | ||||
Recent Year Amount | Recent Year Percent | Prior Year Amount | Prior Year Percent | |
Americas | $13,293 | % | $11,980 | % |
EMEA | 1,217 | % | 1,295 | % |
China/Asia Pacific | 2,396 | % | 1,130 | % |
Channel Development | 1,731 | % | 1,546 | % |
Other | 526 | % | 497 | % |
Total revenues | $19,163 | % | $16,448 | % |
c. Based on the percentages in the vertical analysis, which of Starbuck’s operations grew more? Americas, EMEA, CHINA/ASIA Pacific? Choose one
Question 18
Segment Revenue Vertical Analysis
Twenty-First Century Fox, Inc. is one of the world’s largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite properties. The company provided revenue disclosures by its major product segments in the notes to its financial statements as follows:
a. Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues. Round all percentages to one decimal place.
Major Product Segments | For a Recent Year (in millions) | Percent (%) | ||
Cable Network Programming | $13,773 | % | ||
Television | 4,895 | % | ||
Filmed Entertainment | 9,525 | % | ||
Direct Broadcast Satellite Television | 2,112 | % | ||
Total revenues | $30,305 | 100.0% |
Question 20
Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-ofperiod spreadsheet at December 31, 2019, fiscal year:
Beacon Signals Company | ||||||
End-of-Period Spreadsheet | ||||||
For the Year Ended December 31, 2019 | ||||||
Unadjusted Trial Balance | Adjustments | Adjusted Trial Balance | ||||
Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. |
Cash | 13,000.00 | 13,000.00 | ||||
Accounts Receivable | 40,500.00 | (a) 12,500.00 | 53,000.00 | |||
Prepaid Insurance | 4,200.00 | (b) 3,000.00 | 1,200.00 | |||
Supplies | 3,000.00 | (c) 2,250.00 | 750.00 | |||
Land | 98,000.00 | 98,000.00 | ||||
Building | 500,000.00 | 500,000.00 | ||||
Accumulated Depreciation-Building | 255,300.00 | (d) 9,000.00 | 264,300.00 | |||
Equipment | 121,900.00 | 121,900.00 | ||||
Accumulated Depreciation-Equipment | 100,100.00 | (e) 4,500.00 | 104,600.00 | |||
Accounts Payable | 15,700.00 | 15,700.00 | ||||
Salaries and Wages Payable | (f) 4,900.00 | 4,900.00 | ||||
Unearned Rent | 2,100.00 | (g) 1,300.00 | 800.00 | |||
Sarah Colin, Capital | 238,100.00 | 238,100.00 | ||||
Sarah Colin, Drawing | 10,000.00 | 10,000.00 | ||||
Fees Earned | 388,700.00 | (a) 12,500.00 | 401,200.00 | |||
Rent Revenue | (g) 1,300.00 | 1,300.00 | ||||
Salaries and Wages Expense | 163,100.00 | (f) 4,900.00 | 168,000.00 | |||
Advertising Expense | 21,700.00 | 21,700.00 | ||||
Utilities Expense | 11,400.00 | 11,400.00 | ||||
Depreciation Expense-Building | (d) 9,000.00 | 9,000.00 | ||||
Repairs Expense | 8,850.00 | 8,850.00 | ||||
Depreciation Expense-Equipment | (e) 4,500.00 | 4,500.00 | ||||
Insurance Expense | (b) 3,000.00 | 3,000.00 | ||||
Supplies Expense | (c) 2,250.00 | 2,250.00 | ||||
Miscellaneous Expense | 4,350.00 | 4,350.00 | ||||
1,000,000.00 | 1,000,000.00 | 37,450.00 | 37,450.00 | 1,030,900.00 | 1,030,900.00 |
Required: DO ALL 1-5 with correct labels
1. | Prepare an income statement for the year ended December 31. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. |
2. | Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items. |
3. | Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word “Less” on the balance sheet; they will automatically insert where necessary. |
4. | Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. If you are unsure of account titles, see the chart of accounts. |
5. | Prepare a post-closing trial balance. |
Question 21
Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
Finders Investigative Services | |||
End-of-Period Spreadsheet | |||
For the Year Ended June 30, 2019 | |||
~ | Adjusted Trial Balance | ||
Account Title | ~ | Dr. | Cr. |
~ | |||
Cash | ~ | 28,000 | |
Accounts Receivable | ~ | 69,600 | |
Supplies | ~ | 4,600 | |
Prepaid Insurance | ~ | 2,500 | |
Building | ~ | 439,500 | |
Accumulated Depreciation-Building | ~ | 44,200 | |
Accounts Payable | ~ | 11,700 | |
Salaries Payable | ~ | 3,000 | |
Unearned Rent | ~ | 2,000 | |
Stacy Tanner, Capital | ~ | 373,800 | |
Stacy Tanner, Drawing | ~ | 12,000 | |
Service Fees | ~ | 718,000 | |
Rent Revenue | ~ | 12,000 | |
Salaries Expense | ~ | 522,100 | |
Rent Expense | ~ | 48,000 | |
Supplies Expense | ~ | 10,800 | |
Depreciation Expense-Building | ~ | 8,750 | |
Utilities Expense | ~ | 7,150 | |
Repairs Expense | ~ | 3,000 | |
Insurance Expense | ~ | 2,500 | |
Miscellaneous Expense | ~ | 6,200 | |
~ | 1,164,700 | 1,164,700 | |
Required: DO ALL 1-3 AND LABEL ALL | |||
1. | Prepare an income statement, a statement of owner’s equity (no additional investments were made during the year), and a balance sheet. * | ||
2. | Journalize the entries that were required to close the accounts at June 30. | ||
3. | If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, what would have been the amount of net income or net loss?
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Question 22
For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July:
Jul. | 1 | The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. |
1 | Paid three months’ rent on a lease rental contract, $6,000. | |
2 | Paid the premiums on property and casualty insurance policies, $4,500. | |
4 | Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. | |
5 | Purchased additional office equipment on account from Office Necessities Co., $5,100. | |
6 | Received cash from clients on account, $12,750. | |
10 | Paid cash for a newspaper advertisement, $500. | |
12 | Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. | |
12 | Provided services on account for the period July 1–12, $14,200. | |
14 | Paid receptionist for two weeks’ salary, $1,500. |
Record the following transactions on Page 2 of the journal:
Jul. | 17 | Received cash from cash clients for fees earned during the period July 1–17, $10,400. | |||||||||||
18 | Paid cash for supplies, $1,000. | ||||||||||||
20 | Provided services on account for the period July 13–20, $9,000. | ||||||||||||
24 | Received cash from cash clients for fees earned for the period July 17–24, $8,500. | ||||||||||||
26 | Received cash from clients on account, $12,000. | ||||||||||||
27 | Paid receptionist for two weeks’ salary, $1,500. | ||||||||||||
29 | Paid telephone bill for July, $325. | ||||||||||||
31 | Paid electricity bill for July, $675. | ||||||||||||
31 | Received cash from cash clients for fees earned for the period July 25–31, $7,100. | ||||||||||||
31 | Provided services on account for the remainder of July, $5,500. | ||||||||||||
31 | Jolene withdrew $20,000 for personal use. | ||||||||||||
Required: ANSWER ALL BELOW AND LABEL JUST PUT ANSWERS THAT GO IN EVERY JOURNAL ENTRy | |||||||||||||
1. | Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) | ||||||||||||
2. | Post the July transactions.
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3. | Prepare an unadjusted trial balance. | ||||||||||||
4. | At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6).
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5. | (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. | ||||||||||||
6. |
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7. | Prepare an adjusted trial balance. |
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