10 hr deadline 244058

The account balances of ABC

Services at December 31, 2011 are listed below:

Accounts Payable

$12,000

J. Trendsetter, Capital 1/1/11

$10,000

Accounts Receivable

6,000

Supplies

1,000

Cash

18,000

Taxes Expense

1,300

Computer Equipment

21,000

Utilities Expens

8,000

Fees Earned

70,000

Wages Expense

25,000

Rent Expense

10,000

Supplies Expense

1,700

Prepare an income statement, statement of owner’s equity, and a balance sheet as of December 31, 2011.

Jacki Lopez started JVL Consulting on January 1, 2011. The following are the account balances at the end of the first month of business, before adjusting entries were recorded:

Accounts Payable

$350

Accounts Receivable

750

Cash

4,325

Consulting Revenue

4,925

Equipment

7,000

Jacki Lopez, Capital

15,000

Jacki Lopez, Drawing

1,400

Prepaid Rent

6,000

Supplies

800

Adjustment data:

Supplies on hand at the end of the month: $300

Unbilled Consulting Revenue: $850

Rent expense for the month: $2,000

Depreciation on equipment: $150

(a) Prepare the required adjusting entries, adding accounts as needed.

(b) Prepare an Adjusted Trial Balance for JVL Consulting as of January 31, 2011.

The following is the adjusted trial balance for ABC Company.

Sandeep Company

Adjusted Trial Balance

December 31, 2010

Cash

8,130

Accounts Receivable

3,300

Prepaid Expenses

2,750

Equipment

10,400

Accumulated Depreciation

2,200

Accounts Payable

2,700

Notes Payable

1,000

Rena Sandeep, Capital

11,200

Rena Sandeep, Drawing

4,870

Fees Earned

36,600

Wages Expense

12,450

Rent Expense

4,900

Utilities Expense

3,475

Depreciation Expense

2,150

Miscellaneous Expense

1,275

Totals

53,700

53,700

Prepare closing entries and the post- closing trial balance.

A copy machine acquired with a cost of $1,410 has an estimated useful life of 4 years. It is also expected to have a useful operating life of 13,350 copies. Assuming that it will have a residual value of $75, determine the depreciation for the first year by the

a. straight-line method

b. double declining-balance method

c. production method (4,500 copies were made the first year)

TThe Torre Company has the following balances in stockholders equity on December 31st.

Common Stock – $5.00 par, 60,000 issued $300,000

Additional paid in capital – common 600,000

Preferred stock – $100 par, 5,000 issued 500,000

Additional paid in capital – preferred 100,000

Retained earnings 200,000

Treasury stock (cost – $12.00 per share) 60,000

Answer the following questions:

1. How many shares of treasury stock are owned?

2. What was the average market price per share at which common stock was issued?

3. What was the average market price per share at which preferred stock was issued?

4. What is the total value of the Paid in Capital portion of stockholders equity?

5. What is the total value of stockholders equity?

6. How many shares of common stock are outstanding?

7. If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid,

what was the beginning value of retained earnings? How much is earnings per share for

the year?

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