For the past several years, Emily Page has operated a part-time consulting business from her Home. As of June 1, 2010, Emily decided to move to rented quarters and to operate the business, Which was to be known as Bottom Line Consulting, on a full-time basis. Bottom Line Consulting Entered into the following transactions during June: June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received. Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $2,400. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700. Purchased additional office equipment on account from Office Depot Co., $3,500. Received cash from clients on account, $3,000. Paid cash for a newspaper advertisement, $200. Paid Office Depot Co. for part of the debt incurred on June 5, $750. Recorded services provided on account for the period June 1–12, $5,100. Paid part-time receptionist for two weeks’ salary, $1,100. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500. Paid cash for supplies, $750. Recorded services provided on account for the period June 13–20, $3,100. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150. Received cash from clients on account, $6,900. Paid part-time receptionist for two weeks’ salary, $1,100. Paid telephone bill for June, $150. Paid electricity bill for June, $400. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500. Recorded services provided on account for the remainder of June, $1,000. Emily withdrew $5,000 for personal use. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during June is $200. Supplies on hand on June 30 are $650. Depreciation of office equipment for June is $250. Accrued receptionist salary on June 30 is $220. Rent expired during June is $2,000. Unearned fees on June 30 are $1,875. Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Journalize and post the adjusting entries. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner’s equity, and a balance sheet. Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Prepare a post-closing trial balance

For the past several years, Emily Page has operated a part-time consulting business from her Home. As of June 1, 2010, Emily decided to move to rented quarters and to operate the business, Which was to be known as Bottom Line Consulting, on a full-time basis. Bottom Line Consulting Entered into the following transactions during June: June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received. Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $2,400. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700. Purchased additional office equipment on account from Office Depot Co., $3,500. Received cash from clients on account, $3,000. Paid cash for a newspaper advertisement, $200. Paid Office Depot Co. for part of the debt incurred on June 5, $750. Recorded services provided on account for the period June 1–12, $5,100. Paid part-time receptionist for two weeks’ salary, $1,100. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500. Paid cash for supplies, $750. Recorded services provided on account for the period June 13–20, $3,100. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150. Received cash from clients on account, $6,900. Paid part-time receptionist for two weeks’ salary, $1,100. Paid telephone bill for June, $150. Paid electricity bill for June, $400. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500. Recorded services provided on account for the remainder of June, $1,000. Emily withdrew $5,000 for personal use. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during June is $200. Supplies on hand on June 30 are $650. Depreciation of office equipment for June is $250. Accrued receptionist salary on June 30 is $220. Rent expired during June is $2,000. Unearned fees on June 30 are $1,875. Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. Journalize and post the adjusting entries. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner’s equity, and a balance sheet. Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Prepare a post-closing trial balance

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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Question

For the past several years, Emily Page has operated a part-time consulting business from her

Home. As of June 1, 2010, Emily decided to move to rented quarters and to operate the business,

Which was to be known as Bottom Line Consulting, on a full-time basis. Bottom Line Consulting

Entered into the following transactions during June:

June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable,

$4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received.

Paid three months’ rent on a lease rental contract, $6,000.
Paid the premiums on property and casualty insurance policies, $2,400.
Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700.
Purchased additional office equipment on account from Office Depot Co., $3,500.
Received cash from clients on account, $3,000.
Paid cash for a newspaper advertisement, $200.
Paid Office Depot Co. for part of the debt incurred on June 5, $750.
Recorded services provided on account for the period June 1–12, $5,100.
Paid part-time receptionist for two weeks’ salary, $1,100.
Recorded cash from cash clients for fees earned during the period June 1–16, $6,500.
Paid cash for supplies, $750.
Recorded services provided on account for the period June 13–20, $3,100.
Recorded cash from cash clients for fees earned for the period June 17–24, $5,150.
Received cash from clients on account, $6,900.
Paid part-time receptionist for two weeks’ salary, $1,100.
Paid telephone bill for June, $150.
Paid electricity bill for June, $400.
Recorded cash from cash clients for fees earned for the period June 25–30, $2,500.
Recorded services provided on account for the remainder of June, $1,000.
Emily withdrew $5,000 for personal use.
At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).
Insurance expired during June is $200.
Supplies on hand on June 30 are $650.
Depreciation of office equipment for June is $250.
Accrued receptionist salary on June 30 is $220.
Rent expired during June is $2,000.
Unearned fees on June 30 are $1,875.
Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
Journalize and post the adjusting entries.
Prepare an adjusted trial balance.
Prepare an income statement, a statement of owner’s equity, and a balance sheet.
Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
Prepare a post-closing trial balance

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