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The following preliminary unadjusted trial balance of Ranger Co., sports ticket agency, Errors in trial balance Ranger Co. Unadjusted Trial Balance August 31, 2014 Debit balance Credit Balances Cash 77600 Accounts Receivable. 377500 Prepaid Insurance 12000Equipment.. 19000Accounts Payable 29100 Unearned Rent..... 10800Carmen Meeks, Capital 110000Carmen Meeks, Drawing. 13,000 Service Revenue 385000 Wages 213000Expense Advertising Expense.. 16350Miscellaneous Expense 18,400 273,700 668,300 When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $77,600 and $62,100, respectively; (2) a billing of $9,000 to a customer on account was not posted to the accounts receivable account (3) a payment of $4,500 made to a creditor on account was not posted to the accounts payable accOunt; (4) the balance of the unearned rent account is $5,400; (5) the correct balance of the equipment account is $190,000; and (6) each account has a normal balance. Prepare a corrected unadjusted trial balance.
a. Issued common stock for cash 2,000 b. Paid cash for three month's rent: December 2019, January and February 2020 2,400 c. Purchased a used truck on credit (recorded as an account payable) 13,000 d. Purchased supplies on credit. These are expected to be used during the month (recorded as expense) 1,600 e. Paid for a one-year truck insurance policy, effective December 1 2,280 f. Billed a customer for work completed to date 6,000 g. Collected cash for work completed to date 4,000 h. Paid the following expenses in cash: Advertising 700 Interest 700 Telephone 800 Truck operating 600 Wages 5,000 i. Collected part of the amount billed in f above 1,000j. Billed customers for work completed to date 7,000 k. Signed a contract for work to be performed in January 2020 9000 5,000 l. Paid the following expenses in cash: Advertising 600 Interest 600 Truck operating 900 Wages 2,000 m. Collected an advance on work to be done in January (the policy of the coproration is to record such advances as revenue at the the time they are received) 2,000 n. Received a bill for electricity used during the month (recorded as utilities expense) 800 December Adjusting Entries Amount o. One month of the prepaid insurance has expired. $170 p. The December portion of the rent paid on December 1 has expired. $900 q. Counted supplies and found this amount still on hand (recorded the amount used as an expense) $100 r. The amount collected in transaction m is unearned at December 31. $2,000 s. Three days of wages for December 29, 30, and 31 are unpaid. These will be paid in January. $2,900 t. One month of depreciation needs to be recorded. Estimated useful life of truck in years is: 361.1111111 3 u. Income taxes expense to be paid in the next fiscal year. $100 7 Prepare closing entries and a post-closing trial balance at December 31, 2019.
Grace Stewart began the Stewart Answering Service in December. The firm provides services for professional people and is currently operating with leased equipment. On January 1, the assets and liabilities of the business were:Cash 6400 Accounts Receivable 6900Accounts Payable 1600Notes Payable 1500Common Stock 10200Retained Earnings 0 The following transactions occurred during the month of January: 1 Paid rent on office and equipment for January, $1,800. 2 Collected $6,000 on account from clients. 3 Borrowed $3,000 from a bank and signed a note payable for that amount. 4 Billed clients for work performed on account, $12,500. 5 Paid $1,400 on accounts payable. 6 Received invoice for January advertising, $800. 7 Paid January salaries, $3,200. 8 Paid January utilities, $430. 9 Paid stockholders a dividend of $3,600 cash. 10 Purchased a printer (on January 31) for business use, $1,400, 11 Paid $30 to bank as January interest on the outstanding note payable. Required(a) Set up an accounting equation in columnar form with the following individual assets, liabilities, and stockholders' equity accounts: Cash, Accounts Receivable, Equipment, Accounts Payable, Notes Payable, Common Stock, and Retained Earnings. Enter the January 1 balances below each item. (Note: The beginning Equipment account balance is $0.)(b) Show the impact (increase or decrease) of the January transactions on the beginning balances, and total all columns to show that assets equal liabilities plus stockholders' equity as of January 31.
Greek Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and roots Townhouse to vacationing skiers the following hypothetical December transactions are typical of those that occur at the resort.a. Borrowed $640,000 from the hank on December 1, signing a note payable due in six months.b. Purchased a new snowplow for $14,750 cash on December 31.c. Purchased ski supplies for 517,800 on the account.d. Incurred $26,900 in routine maintenance expenses for the chairlifts paid cash.e. Received $74,000 for season passes (beginning in the new year).f. Daily lift passes were sold this month for a total of $97,200 cash.g. Received a $750 deposit on a Townhouse to be rented for five days in January.h. Paid half the charges incurred on account in (c).i. Paid $26,500 in wages to employees for the month of December.1. Prepare accrual basis journal entries for each transaction.2. Calculate the company's preliminary net income
The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period:Performed $87,000 of services for clients on account.Performed $50,000 of services for cash.Incurred $48,000 of other operating expenses on account.Paid $20,000 cash to an employee for salary.Collected $64,000 cash from accounts receivable.Paid $17,000 cash on accounts payable.Paid a $8,000 cash dividend to the stockholders.Accrued salaries were $4,000 at the end of Year 1.Requireda. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)b. What is the amount of total assets at the end of Year 1?c. What is the balance of accounts receivable at the end of Year 1?d. What is the balance of accounts payable at the end of Year 1?f. What is net income for Year 1?g. What is the amount of net cash flow from operating activities for Year 1?
Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $180 per machine hour, and the activity rate for Inspection is $540 per batch. Usage of the activity drivers are as follows: Product A Product X TotalMachine hours 1,400 3,100 4,500Number of batches 47 18 65What is the amount of Machining cost assigned to Product X?a. $558,000b. $756,000c. $25,380d. $252,000