Question

P4-4 (similar to) Philip and Sons' Law Offices opened on January 1, 2018. During the first year of business, the company had the following transactions: 1(Click the loon to view the transactions.) Philip's unadjusted trial balance at December 31, 2018 is as follows EII (Click the icon to view the unadjusted trial balance.) Read the requrements Requirement a. Joumalize and post adjusting journal entries for Philip and Sons. (Record debits first, then credits. Exclude explanations from any joumal entries.) Begin by preparing the adjusting joumal entries Of the cash payments received from austomers on Deoember 1, hailf of these services were performed in Decembe Requirements Account December 31 aJournaize and post adjusting jounal entries for Philip and Sons based on the following addisional information Of the cash payments received from customers on December 1, half of hese services were performed in December and haf relates to future services to be rendered in the folowing year :Ten months of the insurance policy expired by the énd of the yea Depreciation for the full year should be recorded on the building purchased. The building has a 20-year ife and no residual value. Depreciaton will be recorded on a straight-line basis A total of $12,000 of office supplies remains on hand at the end of the year Interest expense in the amount of $4,250 should be accrued on the note payable Wages in the amount of $66,000 must be acorued at year and to be paid in January b. Propare an adjusted trial balance as of December 31 G. Propare a single etop income statement, a statement of shareholders' equity and a balance sheet Print Done

Answer 1

Philip and son's Law Offices 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 Balance Sheet As on 31st December ,2018 Assets 812,400 12,000 12,600 Cash Office Supplies Prepaid insurance Total Current Assets Building Accumulated Depreciation -Building Total Assets 837,000 85,000 (4,250) 80,750 917,750 Liabilities & Stockholder's Equity Notes payable Unearned ServiceRevenue Interest Payable Wages Payable Total Liabilities Common Stock Retained Earnings Total Liabilities & Stockholder's Equity 85,000 185,000 4,250 56,000 330,250 300,000 287,500 587,500 917,750