The document provides the trial balance of Temple Tech as of January 1, 2017 which included beginning balances for various accounts. It then lists 7 transactions that occurred during the year including sales, cash receipts, stock issuance, expenses paid, equipment purchase, dividends paid. The task is to record journal entries for these transactions, post to accounts, prepare an adjusted trial balance, and financial statements.
The document provides the trial balance of Temple Tech as of January 1, 2017 which included beginning balances for various accounts. It then lists 7 transactions that occurred during the year including sales, cash receipts, stock issuance, expenses paid, equipment purchase, dividends paid. The task is to record journal entries for these transactions, post to accounts, prepare an adjusted trial balance, and financial statements.
The document provides the trial balance of Temple Tech as of January 1, 2017 which included beginning balances for various accounts. It then lists 7 transactions that occurred during the year including sales, cash receipts, stock issuance, expenses paid, equipment purchase, dividends paid. The task is to record journal entries for these transactions, post to accounts, prepare an adjusted trial balance, and financial statements.
The document provides the trial balance of Temple Tech as of January 1, 2017 which included beginning balances for various accounts. It then lists 7 transactions that occurred during the year including sales, cash receipts, stock issuance, expenses paid, equipment purchase, dividends paid. The task is to record journal entries for these transactions, post to accounts, prepare an adjusted trial balance, and financial statements.
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The general ledger of the Temple Tech, a consulting company, at January 1, 2017, contained the following
The following is a summary of the transactions for the year:
a. Sales of services, $100,000, of which $30,000 was on credit. b. Collected on accounts receivable, $27,300. c. Issued shares of common stock in exchange for $10,000 in cash. d. Paid salaries, $50,000 (of which $9,000 was for salaries payable). e. Paid miscellaneous expenses, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders.
Your task— 1. Set up the necessary T-accounts and enter the beginning balances from the trial balance.( 2. Prepare a general journal entry for each of the summary transactions listed above. 3. Post the journal entries to the accounts. 4. Prepare an unadjusted trial balance. 5. Prepare and post adjusting journal entries. 6. Accrued salaries at year-end amounted to $1,000. Depreciation for the year on the equipm 7. Prepare an adjusted trial balance. 8. Prepare an income statement and a balance sheet as of December 31, 2017.
Deliverable—please attach an Adjusted Trial Balance, an Income Statement and a Cla
17, contained the following account balances:
ces from the trial balance.(above)
ctions listed above.
for the year on the equipment is $2,000.
mber 31, 2017.
e Statement and a Classified Balance sheet to a regular email and send it to Venish by next We t to Venish by next Wednesday— Cash Accounts Receivable No Debit No Credit No Debit No Credit 30000 15000
Accumulated Depriciation No Debit Credit Accounts Payable 6000 No Debit No Credit Equipment 9000 No Debit No Credit Retained Earnings 20000 No Debit No Credit Common Stock 9500 No Debit No Credit 40500 a. Sales of services, $100,000, of which $30,000 was on credit. b. Collected on accounts receivable, $27,300. c. Issued shares of common stock in exchange for $10,000 in cash. d. Paid salaries, $50,000 (of which $9,000 was for salaries payable). e. Paid miscellaneous expenses, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders.
No Date Account Title Debit Credit
a - Cash 70000 Accounts Receivable 30000 Sales of Services Revenue 100000
b - Cash 27300 Accounts Receivable 27300
c - Cash 10000 Common Stock 10000
d Salary Expense 41000
Salary Payable 9000 Cash 50000
e Miscellaneous Expenses 24000
Cash 24000
f Equipment Purchase 15000
Cash 15000
g Dividends 2500 Cash 2500 b 101: Cash 106: Accounts Receivable No Debit Credit Balance No Debit Credit Balance a 70000 70000 a 30000 30000 b 27300 97300 b 27300 2700 c 10000 107300 15000 17700 d 50000 57300 Miscellaneous Expense e 24000 33300 No Debit Credit Balance f 15000 18300 e 24000 24000 g 2500 15800 Equipment 30000 45800 No Debit Credit Balance 201: Accounts Payable f 15000 15000 No Debit Credit Balance 20000 35000 d 9000 9000 307: Common Stock 9000 0 No Debit Credit Balance Dividends and earnings c 10000 10000 No Debit Credit Balance 40500 50500 g 2500 2500 403: Services Revenue 9500 7000 No Debit Credit Balance 601: Wages Expense a 100000 100000 No Debit Credit Balance d 41000 41000 Accumulated Depriciation No Debit Credit 6000 No Date Account Title Debit Credit a - Cash 70000 Accounts Receivable 30000 Sales of Services Revenue 100000
b - Cash 27300 Accounts Receivable 27300
c - Cash 10000 Common Stock 10000 Cash No Debit No d Salary Expense 41000 30000 Salary Payable 9000 Cash 50000
e Miscellaneous Expenses 24000 Accounts Payable
Cash 24000 No Debit No
f Equipment Purchase 15000 Retained Earnings
Cash 15000 No Debit No
g Dividends 2500 Cash 2500 ash Accounts Receivable Credit No Debit No Credit 15000
Accumulated Depriciation No Debit Credit s Payable 6000 Credit Equipment 9000 No Debit No Credit d Earnings 20000 Credit Common Stock 9500 No Debit No Credit 40500 Temple Tech 101: Cash Unadjusted Trial Balance No Debit December 31, 2017 a 70000 Debit Credit b 27300 Cash $45,800 c 10000 Accounts receivable $17,700 d Equipment $35,000 e Accumulated Depreciation $6,000 f Accounts payable $0 g Common stock $50,500 201: Accounts Payable Retained Earnings $7,000 No Debit Services Revenue $100,000 d 9000 Wages expense $41,000 319: Dividends Miscellaneous expense $24,000 No Debit Totals $163,500 $163,500 g 2500 601: Wages Expense No Debit d 41000
Cash No Debit 30000
Accounts Payable No Debit
Retained Earnings No Debit 101: Cash 106: Accounts Receivable Credit Balance No Debit Credit Balance 70000 a 30000 30000 97300 b 27300 2700 107300 Miscellaneous Expense 50000 57300 No Debit Credit Balance 24000 33300 e 24000 24000 15000 18300 Equipment 2500 15800 No Debit Credit Balance 201: Accounts Payable f 15000 15000 Credit Balance 307: Common Stock 9000 No Debit Credit Balance 319: Dividends c 10000 10000 Credit Balance 403: Services Revenue 2500 No Debit Credit Balance 601: Wages Expense a 100000 100000 Credit Balance 41000
Cash Accounts Receivable
No Credit No Debit No Credit 15000
Accumulated Depriciation No Debit Credit Accounts Payable 6000 No Credit Equipment 9000 No Debit No Credit Retained Earnings 20000 No Credit Common Stock 9500 No Debit No Credit 40500 Adjusting Journal Entries 101: Cash Debit Credit No Debit Credit Balance Salary Expense 1000 a 70000 70000 Salary Payable 1000 b 27300 97300
c 10000 107300
Depreciationa expense 2000 d 50000 57300
Accumulated Depriciation 2000 e 24000 33300 f 15000 18300 g 2500 15800 30000 45800 201: Accounts Payable No Debit Credit Balance d 9000 9000 9000 0 adjust 1000 1000 Dividends and earnings No Debit Credit Balance g 2500 2500 9500 7000 601: Wages Expense No Debit Credit Balance d 41000 41000 106: Accounts Receivable No Debit Credit Balance a 30000 30000 b 27300 2700
15000 17700 Incom
Miscellaneous Expense No Debit Credit Balance e 24000 24000 403: Services Revenue Equipment No No Debit Credit Balance a f 15000 15000 20000 35000 Depreciation Expense 307: Common Stock No No Debit Credit Balance adjusting s c 10000 10000 40500 50500 403: Services Revenue No Debit Credit Balance a 100000 100000
Accumulated Depriciation No Debit Credit Balance 6000 6000 adjust 2000 8000 Income Statement Account
03: Services Revenue Miscellaneous Expense
Debit Credit Balance No Debit Credit Balance 100000 100000 e 24000 24000
Depreciation Expense Salaries Expense
Debit Credit Balance No Debit Credit Balance 2000 2000 d 41000 41000 adjust 1000 42000 Temple Tech 101: Cash Adjusted Trial Balance No Debit Credit December 31, 2017 a 70000 Debit Credit b 27300 Cash $45,800 c 10000 Accounts receivable $17,700 d 50000 Equipment $35,000 e 24000 Accumulated Depreciation $8,000 f 15000 Accounts payable $1,000 g 2500 Common stock $50,500 30000 Retained Earnings $7,000 201: Accounts Payable Services Revenue $100,000 No Debit Credit Wages expense $42,000 d 9000 Miscellaneous expense $24,000 9000 Depreciation expense $2,000 adjust 1000 Totals $166,500 $166,500 Dividends and earnings No Debit Credit g 2500 9500 601: Wages Expense No Debit Credit d 41000 Cash 106: Accounts Receivable Balance No Debit Credit Balance 70000 a 30000 30000 97300 b 27300 2700 107300 15000 17700 57300 Miscellaneous Expense 33300 No Debit Credit Balance 18300 e 24000 24000 15800 Equipment 45800 No Debit Credit Balance nts Payable f 15000 15000 Balance 20000 35000 9000 307: Common Stock 0 No Debit Credit Balance 1000 s c 10000 10000 nd earnings 40500 50500 Balance 403: Services Revenue 2500 No Debit Credit Balance 7000 a 100000 100000 s Expense Balance Accumulated Depriciation 41000 No Debit Credit Balance 6000 6000 adjust 2000 8000 403: Services Revenue No Debit Credit Balance No Debit Credit a 100000 100000 e 24000
Depreciation Expense No Debit Credit Balance No Debit Credit adjusting 2000 2000 d 41000 adjust 1000 Temple Tech Temple Tech Income Statement Balance Sheet December 31, 2017 December 31, 2017
Revenues Assets Cash Service Revenue 100000 Equipment 35000 Less Accum Depreciation -8000 Expenses Account Receivables Salary 42000 Total Asset Miscellaneous 24000 Liabilities Depreciation 2000 Salary Payable Total Expenses 68000 Net Income 32000 Equities Common Stock 50500 Retained Earnings 39000 Total Equity Total Liability and equity 45800
17700 90500 Retained Earnings Last year Balance 9500 1000 Net Income 32000 Less Dividends -2500 39000
