Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March:
March 1: Brooks invested $150,000 cash along with $22,000 of office equipment in the company.
March 2: Venture Consultants pre-paid $6,000 cash or six months’ rent for their office.
March 3: Venture Consultants made credit purchases for office equipment for $3,000 and office supplies for $1,200. Payment is due within 10 days.
March 6: Venture Consultants completed services for a client and immediately received $4,000 cash.
March 9: Venture Consultants completed a $7,500 project for a client who must pay within 30 days.
March 12: Venture Consultants paid $4,200 cash to settle the account payable created on March 3.
March 19: Venture Consultants paid a $5,000 cash premium on a 12-month insurance policy.
March 22: Venture Consultants received $3,500 cash as a partial payment for the work completed on March 9.
March 25: Venture Consultants completed work for another client for $3,820 on credit.
March 29: Brooks withdrew $5,100 cash from the company for personal use.
March 30: Venture Consultants purchased $600 of additional office supplies on credit.
March 31: Venture Consultants paid $500 cash for this month’s utility bill.
Prepare journals for the above economic transactions. Use the file called “Assignment Template” in the assignment section for Part #1, Venture Capital Consultants. Enter your journals to the general ledger using the same file name.
The following unadjusted trial balance is for Power and Demolition Company as of year-end for the April 30, 2015 fiscal year. The April 30, 2015 credit balance of the owner’s equity account is $46,900, and the owner invested $40,000 cash in the company during 2015.
|168||Accumulated depreciation – equipment||$14,000|
|251||Long-term notes payable||$30,000|
|401||Demolition fees earned||$187,000|
|683||Property tax expense||$9,700|
a) Journalize the following adjusting entries as of fiscal year-end April 30, 2015.
b) Post the adjusting entries to an unadjusted trial balance and prepare the adjusted trial balance.
c) Create financial statements.
- The supplies available at the end of fiscal 2015 year are at a cost of $7,900.
- The cost of expired insurance for the fiscal year is $10,600.
- Annual depreciation on equipment is $7,000; no other depreciation adjustment was made in 2015.
- The April utilities expense of $800 is not included in the adjusted trial balance, because the bill arrived after the trial balance was prepared. The $800 amount owed needs to be recorded..
- The company’s employees have earned $2000 of accrued wages in the fiscal year.
- The rent expense not yet paid or recorded in the fiscal year is $3000.
- Additional property taxes of $550 have been assessed for the fiscal year, but have not yet been paid or recorded in the accounts.
- The $300 accrued interest for April has not yet been paid and reported.