Business, 08.02.2021 19:20, hailey6822

Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end-of-period spreadsheet that follows at June 30, 2019, the end of the The annual accounting period adopted by a business. fiscal year: Last Chance Company
End-of-Period Spreadsheet
For the Year Ended June 30, 2019
Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 5,100 5,100
Accounts Receivable 22,750 (a) 3,750 26,500
Prepaid Insurance 3,600 (b) 1,300 2,300
Supplies 2,025 (c) 1,500 525
Land 80,000 80,000
Building 340,000 340,000
Accum. Depr.—Building 190,000 (d) 3,000 193,000
Equipment 140,000 140,000
Accum. Depr.—Equipment 54,450 (e) 4,550 59,000
Accounts Payable 9,750 9,750
Salaries & Wages Payable (f) 1,900 1,900
Unearned Rent 4,500 (g) 3,000 1,500
Tami Garrigan, Capital 361,300 361,300
Tami Garrigan, Drawing 20,000 20,000
Fees Earned 280,000 (a) 3,750 283,750
Rent Revenue (g) 3,000 3,000
Salaries & Wages Expense 145,100 (f) 1,900 147,000
Advertising Expense 86,800 86,800
Utilities Expense 30,000 30,000
Travel Expense 18,750 18,750
Depr. Exp.—Equipment (e) 4,550 4,550
Depr. Exp.—Building (d) 3,000 3,000
Supplies Expense (c) 1,500 1,500
Insurance Expense (b) 1,300 1,300
Misc. Expense 5,875 5,875
900,000 900,000 19,000 19,000 913,200 913,200
Required:
1. Prepare an income statement for the year ended June 30.
2. Prepare a statement of owner's equity for the year ended June 30. No additional investments were made during the year.
3. Prepare a balance sheet as of June 30.
4. On the basis of the end-of-period spreadsheet, journalize the closing entries. For a compound transaction, if a box does not require an entry, leave it blank.
5. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank.

Answers: 3

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answered: lnr919

Last Chance Company

Fees Earned $283,750

Rent Revenue 3,000

Total Revenue $286,750

Salaries & Wages Expense 147,000

Advertising Expense 86,800

Utilities Expense 30,000

Travel Expense 18,750

Depr. Exp.—Equipment 4,550

Depr. Exp.—Building 3,000

Supplies Expense 1,500

Insurance Expense 1,300

Misc. Expense 5,875

Total Expenses $298,775

Net Income (Loss) ($12,025)

2. Owner's Equity for the year ended June 30:

Tami Garrigan, Capital $361,300

Tami Garrigan, Drawing (20,000)

Net Income (Loss) ($12,025)

Capital, balance $329,275

3. Balance Sheet as of June 30:

Assets:

Cash $5,100

Accounts Receivable 26,500

Prepaid Insurance 2,300

Supplies 525 $34,425

Land 80,000

Building 340,000

Accum. Depr.(193,000) 147,000

Equipment 140,000

Accum. Depr.(59,000) 81,000 $308,000

Total assets $342,425

Liabilities + Equity

Liabilities

Accounts Payable 9,750

Salaries & Wages Payable 1,900

Unearned Rent 1,500 $13,150

Tami Garrigan, Capital $329,275

Total liabilities + Equity $342,425

4. Journal of Closing Entries:

Account Title Debit Credit

Cash 5,100

Accounts Receivable 26,500

Prepaid Insurance 2,300

Supplies 525

Land 80,000

Building 340,000

Accum. Depr.—Building 193,000

Equipment 140,000

Accum. Depr.—Equipment 59,000

Accounts Payable 9,750

Salaries & Wages Payable 1,900

Unearned Rent 1,500

Tami Garrigan, Capital 361,300

Tami Garrigan, Drawing 20,000

Account Title Debit Credit

Income Summary $286,750

Fees Earned $283,750

Rent Revenue $3,000

To close the revenue accounts to the income summary.

Account Title Debit Credit

Income Summary $298,775

Salaries & Wages Expense $147,000

Advertising Expense 86,800

Utilities Expense 30,000

Travel Expense 18,750

Depr. Exp.—Equipment 4,550

Depr. Exp.—Building 3,000

Supplies Expense 1,500

Insurance Expense 1,300

Misc. Expense 5,875

To close the expenses accounts to the income summary.

Adjusting Journal Entries:

Debit Accounts Receivable $3,750

Credit Fees Earned $3,750

To record fees on account.

Debit Insurance Expense $1,300

Credit Prepaid Insurance $1,300

To record Insurance expense.

Debit Supplies Expense $1,500

Credit Supplies $1,500

To record supplies expense.

Debit Depreciation Expense - Building $3,000

Credit Accumulated Depreciation - Building $3,000

To record depreciation expense.

Debit Depreciation Expense- Equipment $4,550

Credit Accumulated Depreciation - Equipment $4,550

To record depreciation expense.

Debit Salaries & Wages Expense $1,900

Credit Salaries & Wages Payable $1,900

To record accrued salaries and wages.

Debit Unearned Rent $3,000

Credit Rent Revenue $3,000

To record rent earned.

5. Post Closing Trial Balance:

Account Title Debit Credit

Cash $5,100

Accounts Receivable 26,500

Prepaid Insurance 2,300

Supplies 525

Land 80,000

Building 340,000

Accum. Depr. - Building $193,000

Equipment 140,000

Accum. Depr. - Equipment 59,000

Accounts Payable 9,750

Salaries & Wages Payable 1,900

Unearned Rent 1,500

Tami Garrigan, Capital 329,275

Totals $594,425 $594,425

Explanation:

a) Data and Calculations:

Last Chance Company

End-of-Period Spreadsheet

For the Year Ended June 30, 2019

Unadjusted Adjusted

Trial Balance Adjustments Trial Balance

Account Title Dr. Cr. Dr. Cr. Dr. Cr.

Cash 5,100 5,100

Accounts Receivable 22,750 (a) 3,750 26,500

Prepaid Insurance 3,600 (b) 1,300 2,300

Supplies 2,025 (c) 1,500 525

Land 80,000 80,000

Building 340,000 340,000

Accum. Depr.—Building 190,000 (d) 3,000 193,000

Equipment 140,000 140,000

Accum. Depr.—Equipment 54,450 (e) 4,550 59,000

Accounts Payable 9,750 9,750

Salaries & Wages Payable (f) 1,900 1,900

Unearned Rent 4,500 (g) 3,000 1,500

Tami Garrigan, Capital 361,300 361,300

Tami Garrigan, Drawing 20,000 20,000

Fees Earned 280,000 (a) 3,750 283,750

Rent Revenue (g) 3,000 3,000

Salaries & Wages Expense 145,100 (f) 1,900 147,000

Advertising Expense 86,800 86,800

Utilities Expense 30,000 30,000

Travel Expense 18,750 18,750

Depr. Exp.—Equipment (e) 4,550 4,550

Depr. Exp.—Building (d) 3,000 3,000

Supplies Expense (c) 1,500 1,500

Insurance Expense (b) 1,300 1,300

Misc. Expense 5,875 5,875

Totals 900,000 900,000 19,000 19,000 913,200 913,200

Adjusted Trial balance

Account Title Dr. Cr.

Cash 5,100

Accounts Receivable 26,500

Prepaid Insurance 2,300

Supplies 525

Land 80,000

Building 340,000

Accum. Depr.—Building 193,000

Equipment 140,000

Accum. Depr.—Equipment 59,000

Accounts Payable 9,750

Salaries & Wages Payable 1,900

Unearned Rent 1,500

Tami Garrigan, Capital 361,300

Tami Garrigan, Drawing 20,000

Fees Earned 283,750

Rent Revenue 3,000

Salaries & Wages Expense 147,000

Advertising Expense 86,800

Utilities Expense 30,000

Travel Expense 18,750

Depr. Exp.—Equipment 4,550

Depr. Exp.—Building 3,000

Supplies Expense 1,500

Insurance Expense 1,300

Misc. Expense 5,875

Totals 913,200 913,200

answered: Guest

answer; ///i believe the correct answer is(e) complementary to each other;

answered: Guest

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

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Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared t...