Accounting
P3-43 This problem continues theHaupt Consulting situationfromProblem 2-64of Chapter 2.
Start from thetrial balance andtheposted T-accounts thatHaupt Consulting preparedatDecember 18,as follows:
HAUPT CONSULTING Trial Balance December 18,2010 Account Title Cash Accounts receivable Supplies Equipment Accumulated depreciarion-eequipment Furniture Accumulated depreciation-c-furniture Accounts payable Salary payable Unearned servicerevenue Carl Haupt, Capital Carl Haupt, Withdrawals Service revenue Rent expense Utilities expense Salary expense Depredation expense-c-equipmenr Depreciation expense-efurniture Supplies expense Total Later inDecember, thebusiness completed thesetransactions, asfollows:
$16,400 $16,400 ~~~~-~ Balance Debit Credit s 8,100 1,700 ]00 2,000 .1,600 $ 3,900 10,000 2,500 .100 200 Dee 21 Received $900inadvance forclient service tnbe: performed evenlyover the next JOJays.
21 Hired asecretary tobepaid $1,500 onthe 2(1th dayofeach month. The secretary beginsworkimmediately.
26 Paid$300 on account.
18 Collected $600onaccount, ~O Owner withdrew $1,600.
TheAdjusting Process 185 Requirements 1.Open theseadditional T-accounts: Accumulated depreciation-equipment; Accumulated depreciation-e-fumirure; Salarypayable; Unearned servicerevenue; Depreciation expense-equipment; Depreciationexpense-furniture; Supplies expense.
2. Journalize thetransactions ofDecember 21-30.
3. Post tothe T-accounrs, keyingallitems bydate.
4. Prepare atrial balance atDecember .>1.Also setupcolumns forthe adjustments and forthe adjusted trialbalance, asillustrared inExhibir 3-9.
S. AtDecember 31,thebusiness gathersthefollowing information forthe adjust- ing entries:
Accrued servicerevenue, $400 h. Earned S.lOOofthe service revenue collected inadvance unDecember 2] c.
Supplies .• on hand, $100 d.
Depreciation expense=equipment, $.1:\; furniture, $60 e. Accrued $700 expense forsecretary's salary On your work sheetmake theseadjustments directlyinthe adjustments columns, andcomplete theadjusted trialbalance atDecember 31.Throughout the hook, toavoid rounding errors,webase adjusting entrieson30-day months and 360-day years.
6. Journalize andpost theadjusting entries.Inthe 'f-accounrs denoteeachadjusting amount as Adj and anaccount balanceas Bal.
7. Prepare theincome statement andthestatement ofowner's equiryofHaupt Consulting forthe month endedDecember 31,2010, andprepare thebalance sheet atthat date.
• UsingtheTrial balance prepared inChapter 2consider thefollowing adjustment datagath- ered byC]:
3.
CJprepared aninventory ofsupplies andfound therewere$70ofsupplies inthe cabinet on April.'lO h. One month's combined depreciation onall assets wasestimated tobe 5300 Requirements 1.Using thedata provided fromthetrial balance, theprevious adjustment infor- mation, andtheinformation fromChapter 2,prepare allrequired adjusting journal entriesforApri!.
2. Prepare anadjusted trialbalance asofApril 30for Crystal ClearCleaning.
Apply YourKnowledge Case 1.Lee Nichola, hasbeen theowner andhasoperated World.com Advertising sinceits beginning 10years ago.Thecompany hasprospered. Recently,Nicholas mentioned thathe would sellthebusiness fortheright price.
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