Question

See Project Instructions PROBLEM STATEMENT Guadalupe Rios demonstrated entrepreneurial spirit by starting a graphic design business called G's Designs. Based on an excellent business plan, Guadalupe was able to raise sufficient capital to begin operations on 1 June 2019. Guadalupe must now close the books at 31 December and prepare financial statements. Item Adjusting entries needed The balance in the Prepaid Insurance is from annual premium paid on 1 June. Office supplies were physically counted on 31 December 2019, totalling $1,800. The equipment was purchased on the first day of operations. It is expected to last 10 years. Completed 70% of the design services for the only customer who paid in advance. 5 Unpaid wages at 31 December are $1,000. Sent invoices for $17,000 in Design work completed the last week of December. The utility bill for December has not yet been received. The average utility bill is $230. 8 Rent is payable one year in advance. On 1 June, 12 months of rent was paid. 9 Guadalupe paid a $2,100 Dividend to the Stockholders G's Designs General Ledger Accounts G's Designs Accounts Payable Unadjusted Trial Balance Accounts Receivable As of 31 December 2019 Accumulated Depreciation DEBIT CREDIT Cash Cash 7,050.00 Common Stock Accounts Receivable 14,000.00 Depreciation Expense Prepaid Insurance 15,000.00 Design Fees Earned Prepaid Rent 10,800.00 Dividend Office Supplies 3,500.00 Equipment Equipment 36,000.00 Insurance Expense Accounts Payable 15.230.00 Office Supplies Unearned Fees 4,500.00 Prepaid Insurance Common Stock 60,000.00 Prepaid Rent Design Fees Eamed 14,000.00 Rent Expense Utilities Expense 1,380.00 Retained Earnings Wages Expense 6,000.00 Supplies Expense Totals 93.730.00 93,730.00 Unearned Fees Utilities Expense Wages Expense Wages Payable

Answer 1

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