Question

questions 4 and 5 only

Directions: The following information represent a full case for the same company. You are required to perform the accounting cyde steps as directed. Be organized and neat, your answers should be hand written. RRRR ... . . .... ... . .......... Transactions for Adam Company for the Adam 2019 are presented below 1. 1/1/2019 Issued ordinary shares in exchange for $99.000 cash. 2. 5/2/2019 Purchased land costing $43,200, for cash. 3. 3/3/2019 Performed a services for company x on account for $310,000. 4. 1/4/2019 Received $264,800 for the services performed on 3/3/2018. 5. 10/5/2019 Purchased Equipment for $110,000 in cash 6. 15/8/2019 Purchased supplies on account for $10800 7. 14/11/2019 Paid $4800 for a one-year insurance policy. 8. 1/12/2019 paid the following expenses in cash: utilities exp 12800 : salaries exp 50000 : rent exp 131000. First: Journalize each transaction, post and balance to accounts, and then prepare the Unadjusted trial balance. At year end 31/12/2019, the following information are avaiable for you. a. Insurance expired during the year, $2,000. b. Depreciation on furniture and equipment, 15000 per year C. A count of supplies on December 31, 2018, indicates that supplies of €5800 are on hand. d. Adam Company performed disinfecting services for a dient in December 2018. The client will be billed €3,000. e. Salaries of 8000 are unpaid and due. Second: Prepare the necessary adjusting entries and then prepare the trial balance after the adjusting entries. Third: Prepare the Income Statement, Retained Eamings statement, and financial positon statement at 31/12/2019 Fourth: Prepare the necessary closing entries. Fifth: prepare a post-closing trial balance

Answer 1

As only 4th and 5th part is asked by the student so the answer for these two only are as follows:

Prepare adjusted trial balance as follows:

	Un adjusted trial balance		Adjustments		Adjusted trial balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$   12,000				$        12,000
Accounts receivable	$   45,200		$       3,000		$        48,200
Supplies	$   10,800			$       5,000	$          5,800
Prepaid insurance	$     4,800			$       2,000	$          2,800
Land	$   43,200				$        43,200
Equipment	$1,10,000				$     1,10,000
Accumulated depreciation				$     15,000		$   15,000
Accounts payable		$    10,800				$   10,800
Salaries payable				$       8,000		$     8,000
Share capital		$    99,000				$   99,000
Service revenue		$ 3,10,000		$       3,000		$3,13,000
Utilities expense	$   12,800				$        12,800
Salaries expense	$   50,000		$       8,000		$        58,000
Rent expense	$1,31,000				$     1,31,000
Insurance expense			$       2,000		$          2,000
Depreciation expense			$     15,000		$        15,000
Supplies expense			$       5,000		$          5,000
Total	$4,19,800	$ 4,19,800			$     4,45,800	$4,45,800

4.

Prepare closing entries as follows:

Date	Accounts	Debit	Credit
31-Dec	Income summary	$2,23,800
	Utilities expense		$    12,800
	Salaries expense		$    58,000
	Rent expense		$ 1,31,000
	Insurance expense		$      2,000
	Depreciation expense		$    15,000
	Supplies expense		$      5,000
31-Dec	Service revenue	$3,13,000
	Income summary		$ 3,13,000
31-Dec	Income summary (313000 - 223800)	$   89,200
	Retained earnings		$    89,200

5.

Prepare post-closing trial balance as follows:

	Debit	Credit
Cash	$          12,000
Accounts receivable	$          48,200
Supplies	$            5,800
Prepaid insurance	$            2,800
Land	$          43,200
Equipment	$       1,10,000
Accumulated depreciation		$    15,000
Accounts payable		$    10,800
Salaries payable		$      8,000
Share capital		$    99,000
Retained earnings		$    89,200
Total	$       2,22,000	$ 2,22,000