Question

ACC Company, Inc. Balance Sheet 12/31/19 1,500.00 1,250.00 100.00 $ 2,850.00 Assets: Current Assets: Cash Accounts Receivable Prepaid Expenses Total Current Assets Long-Term Assets: Property, Plant, and Equipment Land Buildings Equipment Accumulated Depreciation Total Property, Plant, and Equipment Total Assets $ 10,000.00 25,000.00 15,000.00 (12,000.00) $ $ $ 38,000.00 40,850.00 100.00 150.00 Liabilities: Current Liabilities Accounts Payable Accrued Expense Salary and Wages Payable Total Liabilities Shareholder's Equity Common Stock - $1 par Retained Earnings Total Equity Total Liabilities and Equity $ 250.00 $ $ 15,000.00 25,600.00 $ $ 40,600.00 40,850.00 Transactions during January 2020: 1. On January 1, 2020, the owner of ACC invested $10,000.00 cash in the company. 2. An invoice was received from ACC's insurance provider on January 15, 2020, for casualty insurance coverage in the amount of $2,400.00 for the period January 1, through December 31, 2020. 3. Employees earned salary and wages in January of $6,500.00 which was paid on February 1, 2020. 4. The insurance premium described in transaction 2 was paid on January 31, 2020. 5. Office expense for the month of January paid in cash was $1,500.00 6. Record insurance expense for the month of January. 7. January service revenue for the Company is $21,000.00. All revenues are recorded as "on account." Required: On separate sheets of paper, please: * Prepare the appropriate journal entries associated with the above transactions. * Prepare a "T" account depiction of the Company's General Ledger activity for the month of January 2020. * Prepare ACC's Income Statement for the month ending January 31, 2020 * Prepare ACC's Balance Sheet at January 31, 2020.

Answer 1

Acc Company, Inc. Journal Journ Entries as on January 31, 2020 0 Cash Debit Credit ($) All - AC 10,000 6800 6800 2400 1500 10,000 To Common stock Alc (Being issued common stock 2 Salar is 2 wages Alc ar , To Accrued Salariis & wages Alc (Being salary accrued) ( Insurance All - - sh. 200 Prepaid Insersance All 2200 To Cash Ale (Being One moneth premium charged as expense and other Il months are as prepaid expenses) i Office Eupense Ale - 1.800 To Cash AC (Being office expense paid) 5 Account Receivable All - kl. 21000 To Service Revenue Afc C Being Series Rwenure generated ) TCash Alc To Balance bold 1800 By Insurance a To common stochow 10,000 By Prepaid Insurane By office Eupene By closing stock 21000 (8) 200 2200 19.00 7600 11500 11500

[Account Receivable Ale] To Balance bld To service Revene. 22,280 1250 By Balance eld. 21000 2300 22,20 22,290 [Prepaid Eupense Alc To Balance bla 100 By Balan u eld. To Cash Mc. 9.210 2300 2300 (Income statement for the month January 31, 2020) Service Revenue 21000 21000 Gross Income (Alte ano 6500 200 1300 8200 Salaries & Frages Insurance Office Enpeme. Otros Expene (B) Net income (A-B) les! Depreciation. (68000 - 30% of 28000) Fax Net Earnings. [Common stock Al 12,800 6400 19900 To Balanceeld 13000 25000 By Balance 6/8 By Cash 25000 10,000 25000

* Ace's Balance sheet at January 31, 2020. Assets : Current Assets Cash 7600 Accounts Receivables of 2220 Prepaid Engenses 2022140 Total Current Assets Long Term Assets. Property plant Equipment Land Buildings Equipment Accumulated Depreciation (12010 * 700 Total Property Plant Equipment 69 450 10,000 2 SOTO 18010 (1270) 37360 Total Assets Liabilitice: 10. 100 Iso 6500 6750 current hi abilities Accoants payable Aceraed Enpemes on Salaries 2 wagses Acerved. Total Liabilities share holdes's Fanity Common stock - $1 pas. Retained Earnings (25.600 + 12100) Total Equity Total Liability and Equity 25000 37400 62 700 69450 Note :) It is assumed that only in Equipment on Buildings depreciation all charged 12000 -x100 1 2 5600 SITO i per annum, so one month deprecation are taken