80.2K

Verified Solution

Link Copied!

1. Sanchez Computer Center, continued. *** TRIAL BALANCE IS IN THE ATTACHED IMAGES!!! **** At the end of September, Tony took a complete inventory of his supplies and found the following: 5 dozen " screws at a cost of $8.00 a dozen 2 dozen " screws at a cost of $5.00 a dozen 2 cartons of computer inventory paper at a cost of $14 a carton 3 feet of coaxial cable at a cost of $4.00 per foot After speaking to his accountant, he found that a reasonable depreciation amount for each of his long-term assets is as follows: Computer purchased July 5, 201X Depreciation $33 a month Office equipment purchased July 17, 201X Depreciation $10 a month Computer workstations purchased Sept. 17, 201X Depreciation $20 a month Tony uses the straight-line method of depreciation and declares no salvage value for any of the assets. If any long-term asset is purchased in the first 15 days of the month, he will charge depreciation for the full month. If an asset is purchased on the 16th of the month, or later, he will not charge depreciation in the month it was purchased. August and Septembers rent has now expired. Tasks Use your trial balance from the completed problem previously and the adjusting information given here to complete the worksheet for the three months ended September 30, 201X. From the worksheets, prepare the financial statements. Tony decided to end the Sanchez Computer Centers first year as of September 30, 201X. Following is an updated chart of accounts. Chart of Accounts Assets Revenue 1000 Cash 4000 Service Revenue 1020 Accounts Receivable Expenses 1025 Prepaid Rent 5010 Advertising Expense 1030 Supplies 5020 Rent Expense 1080 Computer Shop Equipment 5030 Utilities Expense 1081 Accum. Depr. C. S. Equip. 5040 Phone Expense 1090 Office Equipment 5050 Supplies Expense 1091 Accum. Depr. Office Equip. 5060 Insurance Expense Liabilities 5070 Postage Expense 2000 Accounts Payable 5080 Depr. Exp. C. S. Equip. Owners Equity 5090 Depr. Exp. Office Equip. 3000 T. Freedman, Capital 3010 T. Freedman, Withdrawals 3020 Income Summary Complete the following: a. Journalize the adjusting entries. b. Post the adjusting entries to the ledger. c. Journalize the closing entries. d. Post the closing entries to the ledger. e. Prepare a post-closing trial balance.

Previous figures to alter below:

previous trial balance is in the attached images

Trial Balance sheet as on 30.09.2018 Liability and owned equity Assets cash 3385 accounts payable 335 freedman capital supplies 250 5565 freedman withdrawal | 4130 Office equipment 1800 equipment 1200 expenses 405 Service revenue 3400 Prepaid rent 400 total liability total assets 10435 10435 Income statement for the period of September 2018 Revenue alc electricity exp 95.00 3.285.00 Telephone exp 65.00 Computer exp 200.00 Rent paid 1,200.00 Income 1.725.00 3,285.00 3,285.00 15.09.2018 debit computer expenses 200 Business Name SANCHEZ COMPUTERS CENTRE credit first union bank a/c Owner Name Mr Tony Freedman (being computer exp paid by cheque Forwarded Balance from august onwards 12.09.2018 Debit First union bank a/c 850 Credit Service revenue a/c 28.09.2018 Debit Service revenue Alc 2600 Credit revenue Alc 2600 08.09.2018 Debit telephone expenses 155 Credit first union bank a/c 155 (being payment for telephone exp made) 26.09.2019 Debit Cash A/C 140 Credit Service revenue Alc 140 06.09.2018 debit Cash alc 220 credit revenue a/c 220 (being service rendered to summer luppie in cash) 22.09.2018 debit Electricity expenses a/c Credit electricity expenses payable a/c 06.09.2018 debit Cash alc 325 credit revenue a/c 325 (being service rendered to tonva parker in cash) 20.09.2018 Debit Telephone Expenses A/C Credit Pacific Bell USA a/c 01.09.2018 debit rent alc 800 Debit prepaid rent a/c 400 credit first union bank a/c 1200 17.09.2019 Debit Equipment a/c 1200 (being payment for the rent 3 months) Credit First Union Bank a/c 1200 C & D Tony freedman - Sanchez computer center Balance sheet as on 30.09.2018 Assets Liability and owned equity cash 3385 accounts payable 335 freedman capital supplies 250 5565 Office equipment 1800 freedman withdrawal 4130 equipment 1200 expenses 405 Service revenue 3400 Prepaid rent 400 total assets 10435 total liability 10435 Income statement for the period of September 2018 electricity exp 95.00 Revenue a/c 3,285.00 Telephone exp 65.00 Computer exp 200.00 Rent paid 1,200.00 Income 1,725.00 3,285.00 3,285.00 Trial Balance sheet as on 30.09.2018 Liability and owned equity Assets cash 3385 accounts payable 335 freedman capital supplies 250 5565 freedman withdrawal | 4130 Office equipment 1800 equipment 1200 expenses 405 Service revenue 3400 Prepaid rent 400 total liability total assets 10435 10435 Income statement for the period of September 2018 Revenue alc electricity exp 95.00 3.285.00 Telephone exp 65.00 Computer exp 200.00 Rent paid 1,200.00 Income 1.725.00 3,285.00 3,285.00 15.09.2018 debit computer expenses 200 Business Name SANCHEZ COMPUTERS CENTRE credit first union bank a/c Owner Name Mr Tony Freedman (being computer exp paid by cheque Forwarded Balance from august onwards 12.09.2018 Debit First union bank a/c 850 Credit Service revenue a/c 28.09.2018 Debit Service revenue Alc 2600 Credit revenue Alc 2600 08.09.2018 Debit telephone expenses 155 Credit first union bank a/c 155 (being payment for telephone exp made) 26.09.2019 Debit Cash A/C 140 Credit Service revenue Alc 140 06.09.2018 debit Cash alc 220 credit revenue a/c 220 (being service rendered to summer luppie in cash) 22.09.2018 debit Electricity expenses a/c Credit electricity expenses payable a/c 06.09.2018 debit Cash alc 325 credit revenue a/c 325 (being service rendered to tonva parker in cash) 20.09.2018 Debit Telephone Expenses A/C Credit Pacific Bell USA a/c 01.09.2018 debit rent alc 800 Debit prepaid rent a/c 400 credit first union bank a/c 1200 17.09.2019 Debit Equipment a/c 1200 (being payment for the rent 3 months) Credit First Union Bank a/c 1200 C & D Tony freedman - Sanchez computer center Balance sheet as on 30.09.2018 Assets Liability and owned equity cash 3385 accounts payable 335 freedman capital supplies 250 5565 Office equipment 1800 freedman withdrawal 4130 equipment 1200 expenses 405 Service revenue 3400 Prepaid rent 400 total assets 10435 total liability 10435 Income statement for the period of September 2018 electricity exp 95.00 Revenue a/c 3,285.00 Telephone exp 65.00 Computer exp 200.00 Rent paid 1,200.00 Income 1,725.00 3,285.00 3,285.00

Answer & Explanation Solved by verified expert

See Answer