Chap4_Practice Question3

Chap4_Practice Question3 - 4. Using a worksheet, enter the...

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ACTG 1P11 FA Chapter 4: Sample Problem The trial balance (unadjusted) of Soffer Services Ltd., shown below, pertains to December 31, 2005, which is the end of its year-long accounting period. Data needed for the adjusting entries include the following: a. Supplies on hand at year-end, $2,000. b. Amortization on furniture and fixtures, $20,000 c. Amortization on building, $10,000 d. Salary owed but not yet paid $5,000. e. Accrued service revenue, $12,000. f. Of the $45,000 balance of unearned service revenue, $32,000 was earned during the year. g. Accrued income tax expense, $35,000. Required: 1. Open the ledger accounts with their unadjusted balances (in thousands). You may use the T-account format. 2. Journalize the Soffer Services Ltd. adjusting entries at December 31, 2005. Key entries by letter (i.e. use a letter as posting reference for each entry). 3. Post the adjusting entries
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Unformatted text preview: 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). Soffer Services Ltd. Trial Balance 31-Dec-05 (amounts in thousands) Debit Credit Cash 198 $ Accounts Receivable 370 Supplies 6 Furniture & Fixtures 100 Accumulated Amortization - Furniture & Fixtures 40 $ Building 250 Accumulated Amortization - Building 130 Accounts Payable 380 Salary Payable-Unearned Service revenue 45 Income tax payable-Common shares 100 Retained earnings 193 Dividends 65 Service revenue 286 Salary Expense 172 Supplies expense Amortization expense - furniture & fixtures Amortization expense - building Income tax expense Miscellaneous expense 13 1,174 $ 1,174 $...
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Chap4_Practice Question3 - 4. Using a worksheet, enter the...

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