For a problem I have I have to fill out the General Ledger,Income Statement, Sta
ID: 2417441 • Letter: F
Question
For a problem I have I have to fill out the General Ledger,Income Statement, Statement of retained earnings,palance sheet,and post closing trial balance.
This is the info provided:
For the past several years, Aaron Jones has operated a consulting business from his home on a part-time basis. As of December 1, 20X1, Aaron decided to move to rented quarters and incorporate his business as Progress Consulting Inc. Progress Consulting entered into the following transactions during December:
1st Aaron Jones invested the following assets in the business: cash, $50,000; supplies,
$10,000; and office equipment, $30,000. Mr. Jones received stock in an
amount equal to his investment in the corporation.
2nd Paid $9,000 for rent for December 20X1 through February 28, 20X2.
3rd Paid $12,000 for a one year premium on property and casualty insurance. The
policy covers the period December 1, 20X1 to November 30, 20X2.
4th Received $16,000 cash from a client as an advance payment for services to be
performed in the future.
5th Purchased additional office equipment on account from Payne Company for $10,000.
10th Paid $7,500 for a newspaper advertisement that ran in today’s paper.
11th Paid Payne Company $3,000 for part of the debt incurred on December 5.
12th Billed clients for services performed on account, $5,800.
17th Received cash payment from client for services performed on this date, $14,000.
18th Paid $6,000 for supplies.
20th Billed clients for services performed on account, $15,000.
24th Received cash payment from client for services performed on this date, $2,000.
25th Received cash from clients as payment on account, $3,000.
30th Paid $750 for utilities for December.
31st Paid cash dividend of $5,000.
______________________________________________
PROGRESS CONSULTING: Chart of Accounts
11 Cash
12 Accounts Receivable
14 Supplies
15 Prepaid Rent
17 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation
21 Accounts Payable
22 Wages Payable
23 Unearned Revenues
31 Common Stock
34 Retained Earnings
35 Dividends
37 Income Summary
41 Service Revenues
51 Insurance Expense
52 Advertising Expense
53 Rent Expense
55 Supplies Expense
57 Depreciation Expense
59 Utilities Expense
60 Wage Expense
________________________________________
Journalize and post the adjusting entries using the following information:
a. Insurance expired during December is $1,000
b. Supplies on hand on December 31 are valued at $4,500.
c. Depreciation of office equipment for December is $1,000.
d. Rent expired during December is $3,000.
e. Determined that the company had performed $4,000 of the services for which it was paid in advance on December 4th.
f. Employee wages were left unpaid in the amount of $1,700 for the month of December. The employees will be paid the first week in January.
g. Services were performed for a client on December 31 in the amount of $2,100. The client did not pay, nor has the client been billed. (hint: this transaction has not yet been journalized.)
______________________________________
I have filled out the General Journal , Unadjusted Trial Balance, and the Adjusted Trial Balance I just need help starting the others.
Explanation / Answer
a. insurance expense Dr.$1000
To Prepaid insurance $1000
b Supplies expense Dr.$11500
To supplies (10000+6000 - 4500) 11500
c Depreciation expense Dr. $1000
To Accumulated Depreciation 1000
d Rent expense Dr.$3000
To prepaid rent $3000
e Cash Dr.$4000
To Unearned Revenues $4000
f Wages Expense Dr.$1700
To Wages Payable $1700
g Accounts Receivable Dr.$2100
To Service Revenues $2100
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