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,

Debit leedit 000 و3 JOURNAL Date Particular. 1/1/19 | Cash ale Dr. 99,000 To share capital (Being to record issue of Shares) 5/2/19 | Land ale Dr. | 43,200 To cash nola loir (Being to record purchase of land) . 3/3/19 | Account Receivable ale or 3, 10,000 To service Revenue. (Being to record services 43200 3,10,000 provided) Cash al To 264,800 Accounts Receivable. o reord cash received) 264,800 10/5/19 1,10 Ovo 15/8/19 10800 Equipment al Dr.110,000 To cash (Being to record purchase of hand) | Supplies al Dr. | 10800 To Accounts payable (Being to record purchase of supplies) Prepaid. Insmance at Dr 4800 lite To cash (Being to pluchate of Insurance policy) 11/19 4800

1/12/19 12800 50,000 Utilities Expenses Salaries expenses. Rent Expenses To cash ale (Being record payment of 131, ooo 193800 Expenses) Unadjusted Trial Balance Debit Credit 45200 10800 4800 43,200 110,ooo Particulal. Cash (g9ooo -43200 + 26480-110000 - 4800- 193800 ) Account Receivable (3, 10000 - 264800) Supplies Prepaid Insurance Land Equipment Accounts payable. Share capital Service Revenue Utilities Expenses Salaries Expenses Rent Expenses Total con 10,800 ggooo 310,000 12,800 59000 131 000 419 800419800

JOURNAL ENTRIES Dale Debit I Gedit Particedal. 31 Dec २००० 2000 Insueance expenses ale Dr. prepaid Insmance (Being to record expired &nsmance) 31 Dee 1500 Isooo 31 Dec sooo Depreciation Expenses - Equipment. To Accumulated Dep Equipment. (Being to record deprecation. Expenses Supplies Expenses (10800-5800) 5000 To supplies (Being record supplies Consumed! during the year) Account Recevable 3000 To dervice Revenue (Being to record service provided during the year) Salaries Expenses 8000 To Salaries payable. (Being to record accrued Salaries | 31 Dee 3ooo 31 Dec 8ooo

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