Question

Directions: The following information represent a full case for the same company. You are required to perform the accounting cycle steps as directed. Be organized and neat, your answers should be hand written. *********************************************************************** 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 client 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 Earnings statement, and financial positon statement at 31/12/2019 Fourth: Prepare the necessary closing entries. Fifth: prepare a post-closing trial balance

Answer 1

ANSWER

As per the given question,

JOURNAL Date Paitiular Del it uedit /1/19 39,000 Cash 9/c To share capital (Reing to reuord iscue of shares) 39,000 5/2/19 Land ale 43, 200 Ind ibooo To cash 43,200 CBeing to reeord puchose of Leund) 3/3 119 Account Recaivalle 4/e Dr 3,10,o00 To Service Rewenue 310,000 CBeing to veord Sorvicas provieled) /4/19 S64,800 napnal Cash ale Dr. To Accounls Recaivobte to reeord caih recaived | 2 G,800 Beny 1015/19 Equipment /e ,lo 000 Dr. To Cash e000 19 to reord purckaie Lound) 5/8/13 Supplies le To Acuounts 10 800 DY payable CBear to reorel puchale 10800 oftupplies) /11/19 Prepaid Insuane ale To Caih 4800 4800 puelare ihusance poly) to

JAL SOOL U41ities Expenses Salaies expans es Rent Expens /12/19 12 800 50000 131, 000 To Cash 9/ 193800 lBety reerd payment Unadjusted Trial Balonce Partiula edit Debit Cash (99000 -43200 +264@o - 11,00 00-4 8 00-1200 193800 Shvro2 Account. Reaivable (3,19000-264 800) Suppies Prepaid Insurante 45 200 10800 4800 Land 43,200 Pquipment Acoun. payable Share capital o000 1800 1 J9000 3 1o 000 slar Servica Revenue UHit Expentes Salarias expentes Rent Expentes 74 12,800 50000 131,000 To tal 419800 419 800

Adjung JOURNAL ENTRJES Gedtt Dobit Dale Particular 3 Dec Q000 Dr. 1nsucante expentes a/e 2000 To prepaid lnsuance to reiord expired tnswane Beng 31 Dee Depresialion Expent- Equimend t5000 To Accumulaked Dep equipmen to reord depreiakion Expertes) 31 Dec upplie Expeses (10800-58oo] To Suppties (Being reord dupphes Consumad dum the year) I5000 S000 Sooo Account Recivable To dervica Revenue 31 DeE 300 0 3000 (Be to reasrd dovica providad te yeal) dumy 3) Dec atatie expente 8000 pay able CBeng to reuord 9ceued Salaies To dalaies &o00

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