REQUIREMENT #6
Okay, I have a case study I need to complete by the end of this week but I am stuck. Plus, I need to make sure that I am doing this correctly. It is a layered challenge. I will have to send the study in pieces because I could not attach the actual document.
INFORMATION FROM PREVIOUS REQUIREMENT:
Requirement #4:
Prepare adjusting entries using the following information in the
General Journal
below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of supplies is $400.
c) The estimated depreciation on equipment is $125.
d) The estimated income taxes are $3,000.
General Journal
Date Description (Account Name)
Debit
Credit
Requirement #6:
Prepare an adjusted trial balance in the space below.
Quick Tax Corporation
Adjusted Trial Balance
July 31
During its first month of operation, the Quick Tax Corporation,
which specializes in tax preparation,
completed the following transactions.
July 1 Began business by making a deposit in a company
bank account of $60,000, in exchange
for 6,000 shares of $10 par value common
stock.
July 3 Paid the current month's rent,
$3,500
July 5 Paid the premium on a 1-year insurance policy,
$4,200
July 7 Purchased supplies on account from Little
Company, $1,000.
July 10 Paid employee salaries, $3,500
July 14 Purchased equipment from Lake Company, $10,000.
Paid $2,500 down and the balance was
placed on account. Payments will be $500.00 per month
until the equipment is paid. The first payment is due
8/1.
Note: Use accounts payable for the balance
due.
July 15 Received cash for preparing tax returns for the
first half of July, $8,000
July 19 Made payment on account to Lake Company,
$500.
July 31 Received cash for preparing tax returns for the
last half of July, $9,000
July 31 Declared and paid cash dividends of
$600.
| Adjusted Trial Balance | ||
| Account Title | Debit | Credit |
| Cash | $ 62,200.00 | |
| Accounts Receivable | ||
| Supplies | $ 400.00 | |
| Prepaid Insurance | $ 3,850.00 | |
| Equipment | $ 10,000.00 | |
| Accumulated Depreciation | $ 125.00 | |
| Accounts Payable | $ 8,000.00 | |
| Income Tax Payable | $ 3,000.00 | |
| Common Stock | $ 60,000.00 | |
| Dividend | $ 600.00 | |
| Fees Earned | $ 17,000.00 | |
| Salaries Expense | $ 3,500.00 | |
| Rent Expense | $ 3,500.00 | |
| Depreciation Expense | $ 125.00 | |
| Supplies Expense | $ 600.00 | |
| Insurance Expense | $ 350.00 | |
| Income Tax Expense | $ 3,000.00 | |
| Total | $ 88,125.00 | $ 88,125.00 |
Get Answers For Free
Most questions answered within 1 hours.