Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (35 marks) penultimate began business on december

(35 marks) PENULTIMATE began business on December 1, 2019. Its December transactions are: Dec. 1...

60.1K

Verified Solution

Question

Accounting

(35 marks)

PENULTIMATE began business on December 1, 2019. Its December transactions are:

Dec. 1 Invested $40,000 in the business in exchange for common stock.

2 Paid $2,400 cash for December rent.

2 Purchased $2,160 of supplies on account.

3 Purchased $19,000 of office equipment; paying $4,700 cash with the balance due in 30 days.

14 Paid $3,600 cash for assistants wages for two weeks work.

20 Performed consulting services for $6,000 cash

30 Billed clients $14,400 for December consulting services

31 Paid $2,800 cash for dividends

Required:

a.

Record these transactions in journal entry form and prepare the unadjusted trial balance. 10 marks

b.

Journalize the following adjusting entries at December 31: 5 marks

  1. Supplies available at December 31 are $1,440.
  2. Accrued wages payable at December 31 are $540
  3. Depreciation for December is $240.
  4. PENULTIMATE has spent 30 hours on a tax fraud case during December. When completed in January, his work will be billed at $175 per hour. (Use Fees Receivable)

Prepare the adjusted trial balance 8 marks

c.

Prepare the underlying financial statements of I/S (4 marks) and B/S (8 marks)

only need question c, please use OA OL Non-OL (FL) Non-OA (or FA) EQ and NOA NNO EQ

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

You are holding a 2-year 10% (annualized) coupon bond with face value $1,000 now. The interest...

Statistics
1.2K views

Do US adults consume an average of more than 75 grams of fat per day? According...

Biology
1.2K views

During cocoa pulp fermentation, how does the cross-feeding dynamic between lactic acid bacteria, yeast, and acetic...

Biology
1.2K views

The diagram below shows a single bacterial colony before shortly after and one hour after...

Physics
1.2K views

13 Consider two spheres of the same radius R having uniformly distributed volume charge density...

Physics
1.2K views

Attempt All 35 questions The length and breadth of a rectangle are 5 5 0...

Physics
1.2K views

18 Four point charges A B C and D are placed at the four corners...

Accounting
1.2K views

The financial statements of Black Barn Company are given below. Black Barn Company...

Accounting
1.2K views

Schedula of Artivity Cnete From the provided schedule of activity costs, determine the prevention costs....

Accounting
1.2K views

QUESTION 1 XYZ, Inc, has $40,000 of dividend income and a loss from its business...

Accounting
1.2K views

Why does the tax concept of income more closely resemble the accounting concept of income...

Accounting
1.2K views

A large multi-national airline has many responsibility centres. The South American division,...