Chap4_Practice Question2

Chap4_Practice Question2 - account format. 2. Journalize...

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ACTG 1P11 FA Chapter 4: Sample Problem #2 The trial balance (unadjusted) of Clint’s Consulting Company, Inc., shown below, pertains to December 31, 2011, which is the end of its fiscal year. This is Clint’s second year of operations. Data needed for the adjusting entries include the following: a. Supplies on hand at year-end, $75. b. At the beginning of December, Clint’s Consulting Company received a shipment of new computer equipment, total cost $5,000. The invoice for these computers was only received in January 2012 and never entered in the system. The computers have an expected useful life of four years, with no salvage value. c. Amortization on office equipment, $1,500 d. Salary owed but not yet paid $700. e. Accrued consulting revenue, $3,000. f. Half of the $4,000 of previously unearned revenue was earned during the year. Required: 1. Open the ledger accounts with their unadjusted balance. You may use the T-
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Unformatted text preview: account format. 2. Journalize the Consulting Company, Inc., adjusting entries at December 31, 2011. Key entries by letter (i.e. use a letter as posting reference for each entry). 3. Post the adjusting entries 4. Using a worksheet, enter the trial balance and adjusting entries, and prepare the adjusted trial balance. 5. Prepare the income statement, the statement of changes in owners equity (retained earnings) and the balance sheet (non-classified). Clint's Consulting Company, Inc. Unadjusted Trial Balance 31-Dec-11 DR CR Cash $9,000 Supplies 400 Office equipment 15,000 Acc. Amort'n - office equipment 1,500 Accounts payable 6,000 Unearned consulting fees 4,000 Notes payable $0 Common stock 2,000 Retained earnings $9,500 Dividends 600 Consulting fees 9,000 Advertising expense 500 Interest expense 150 Rent expense 6,000 Salary expense 350 $32,000 $32,000...
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Chap4_Practice Question2 - account format. 2. Journalize...

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