The studio pays rent quarterly (every three months). The last payment was made N
ID: 2371643 • Letter: T
Question
The studio pays rent quarterly (every three months). The last payment was made November 1, 2011. The next payment will be made early in February 2012.
On October 1, 2011, the studio borrowed $24,000 by signing a 12-month, 12 percent note payable. The entire amount, plus interest, is due on September 30, 2012.
Accrued income taxes expense for the entire year ending December 31, 2011, total $7,000. The full amount is due early in 2012.
1. Supplies on hand at December 31, 2011, total $1,000. 2.The studio pays rent quarterly (every three months). The last payment was made November 1, 2011. The next payment will be made early in February 2012.
3. Studio equipment is being depreciated over 120 months (10 years). 4.On October 1, 2011, the studio borrowed $24,000 by signing a 12-month, 12 percent note payable. The entire amount, plus interest, is due on September 30, 2012.
5. At December 31, 2011, $3,000 of previously unearned client fees had been earned. 6. Accrued, but unrecorded and uncollected client fees earned total $690 at December 31, 2011. 7. Accrued, but unrecorded and unpaid salary expense totals $750 at December 31, 2011. 8.Accrued income taxes expense for the entire year ending December 31, 2011, total $7,000. The full amount is due early in 2012.
Explanation / Answer
a-1 Prepare the necessary adjusting journal entries on December 31, 2011. (Omit the "$" sign in your response.) a-2 Prepare an adjusted trial balance dated December 31, 2011. (The items in the Trial Balance should be grouped as follows: Assets (in order of their liquidity), Liabilities (in order of their liquidity), Equity, Revenues, and Expenses. Omit the "$" sign in your response.) b-1 From the adjusted trial balance prepared in part a-2, prepare an income statement for the year ended December 31, 2011. (Input all amounts as positive values. Omit the "$" sign in your response.) b-2 From the adjusted trial balance prepared in part a-2, prepare the statement of retained earnings for the year ended December 31, 2011. (Omit the "$" sign in your response.) b-3 From the adjusted trial balance prepared in part a-2, prepare the company's balance sheet dated December 31, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values. Omit the "$" sign in your response.) c. Prepare the necessary year-end closing entries. (Omit the "$" sign in your response.) d. Prepare an after-closing trial balance. (The items in the Trial Balance should be grouped as follows: Assets (in order of their liquidity), Liabilities (in order of their liquidity), Equity, Revenues, and Expenses. Omit the "$" sign in your response.) e. Has the studio's monthly rent remained the same throughout the year? (Omit the "$" sign in your response.) daveed92 Posts: 397 Joined: Tue Mar 22, 2011 12:42 pm
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