T-accounts
Get your Assignment in a Minimum of 3 hours
Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.
Free Inquiry
Assets |
Equities |
||
Equipment |
4 000 |
Paid-in Capital |
3 000 |
Land |
10 200 |
Retained Earnings |
1 000 |
Office Supplies Inventory |
2 000 |
Loan Payable |
4 800 |
Accounts Receivable |
3 600 |
Tax payables |
900 |
Cash, Bank |
6 500 |
Accounts payable |
4 100 |
Prepaid expenses |
900 |
Salary payable |
1 400 |
Unearned rent revenue |
12 000 |
||
Total assets |
27 200 |
Total equities |
27 200 |
Summary of transactions during December:
1. Purchase of € 1 200 of Office Supplies Inventory with 60 day credit term
1. Performed consulting services, for which we received € 3,900 cash immediately.
1. Received an invoice for a series of advertisements, € 1 500, that appeared in the local news during December and will be paid in January.
1. Performed advertisement services for Customer XYZ, for which we will receive € 1,700 on 2 month credit sale.
1. Paid salaries to employees of € 1 000 for December.
1. Received an invoice for external services of € 1 300 for December to be paid with 60 credit term
1. Paid outstanding tax payables.
1. Paid trade creditors € 2,300.
1. The cost of office supplies used during December is € 1,000.
1. In the beginning of September 2014 a subscription rights for local newspaper magazine of € 1 200 was paid for whole year term in advance;
1. In the beginning of October 2014 company receives rent for 8 months in advance, €16,000
1. Salaries to employees of € 1 300 were calculated for December to be paid in January.
1. At the end of the month Company repaid to the Bank credit tranche 1,000 and paid interest charges (interest rate as of 10 % p.a.)
1. Depreciation of equipment for December amounts to € 500.
Required:
a) Prepare the opening journal entry on Dec. 1, 2014.
b) Prepare the journal entries for the transactions (1. – 14) for the month of December and post them to the T-accounts, opening additional T-accounts for accounts as needed. Cross-reference the entries using the numbers of the transactions above.
c) Prepare a trial balance.
d) Prepare the adjusting journal entries and record them at the end of December in the T-accounts as well as in the trial balance.
e) Prepare the closing entries for the temporary accounts and the Income Statement.
f) Prepare the closing entries for the permanent accounts and the Balance Sheet as of Dec. 31, 2014.
"Is this question part of your assignment? We Can Help!"
"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"
Get Started