by Paul Zoukis the owner of Zoukis Forklift Services Ltd because the company has no accounting personnel to prepare its accounting records and financial statements. The company’s financial year end is December 31 each year and you have been provided the following information and transactions for 2023: Jan 1. Balances from 2022 – Cash $500,000; Accounts Receivable $150,000; Supplies $105,000; Machinery and Equipment $700,000; Other Creditors $300,000; and Capital $1,155,000. Jan 2. The following assets were received from Paul Zoukis in exchange for capital in the company: cash - $300,000, accounts receivable - $150,000, supplies - $105,000, and Machinery and Equipment- $350,000. Feb 1. Paid fourteen (14) months’ rent on a lease rental contract at $35,000 per month. Mar 30. Paid the premiums on the property and peril insurance policies for fifteen (15) months amounting to $150,000. April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $440,000. May 5. Purchased forklift on account from Fatman Machinery and Equipment for $400,000. June 6. Received cash from clients on account, $200,000. June 10. Paid cash for security services amounting to $54,000. Aug 12. Paid Fatman Machinery and Equipment $150,000 of the debt incurred on May 5. Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $560,000. Sept 30. Paid part-time workers salary, $226,000. Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $501,250. Oct 30. Paid cash for supplies, $95,000. Oct 30. Recorded services provided on account for the period June to July, $208,000. Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $485,000. Nov 25. Received cash from clients on account, $350,000. Nov 27. Paid part-time workers for salary $226,000. Dec 29. Paid telephone bill for the year 2023 $290,000. Dec 30. Paid electricity bill for the year 2023 $285,000. Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $350,000. Dec 30. Recorded services provided on account for October to December 2023, $280,000. Requirement: 1. Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Machinery and Equipment 21 Other Creditors 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Security Expense 57 Income Summary 2. Post the journal entries to their respective ledger accounts. 3. Prepare a trial balance based on the balances derived after completing requirement #2. 4. The company presented the following adjustments and required you to preparing the adjusting entries in the general journal (Narration required for each journal entry): i. Insurance expired during 2023, $120,000. ii. Supplies on hand on December 31, 2023, $5,000. iii. Unpaid salary on December 31, 2023, $526,000 iv. Rent not expired on December 31, 2023, $70,000 v. Unearned fees on December 31, 2023, $400,000. 5. Post the adjusting entries to their respective ledger accounts already started in requirement # 2. 6. Prepare the adjusted trial balance. 7. Prepare all three 2023 financial statements for presentation to Mr. Zoukis 8. Journalize the closing entries and balance off the ledger accounts including the income summary account. 9. Prepare the post-closing trial balance.

by Paul Zoukis the owner of Zoukis Forklift Services Ltd because the company has no accounting personnel to prepare its accounting records and financial statements. The company’s financial year end is December 31 each year and you have been provided the following information and transactions for 2023: Jan 1. Balances from 2022 – Cash $500,000; Accounts Receivable $150,000; Supplies $105,000; Machinery and Equipment $700,000; Other Creditors $300,000; and Capital $1,155,000. Jan 2. The following assets were received from Paul Zoukis in exchange for capital in the company: cash - $300,000, accounts receivable - $150,000, supplies - $105,000, and Machinery and Equipment- $350,000. Feb 1. Paid fourteen (14) months’ rent on a lease rental contract at $35,000 per month. Mar 30. Paid the premiums on the property and peril insurance policies for fifteen (15) months amounting to $150,000. April 4. Received cash from clients as an advance payment for services to be provided in the coming months, $440,000. May 5. Purchased forklift on account from Fatman Machinery and Equipment for $400,000. June 6. Received cash from clients on account, $200,000. June 10. Paid cash for security services amounting to $54,000. Aug 12. Paid Fatman Machinery and Equipment $150,000 of the debt incurred on May 5. Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $560,000. Sept 30. Paid part-time workers salary, $226,000. Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $501,250. Oct 30. Paid cash for supplies, $95,000. Oct 30. Recorded services provided on account for the period June to July, $208,000. Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $485,000. Nov 25. Received cash from clients on account, $350,000. Nov 27. Paid part-time workers for salary $226,000. Dec 29. Paid telephone bill for the year 2023 $290,000. Dec 30. Paid electricity bill for the year 2023 $285,000. Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $350,000. Dec 30. Recorded services provided on account for October to December 2023, $280,000. Requirement: 1. Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Machinery and Equipment 21 Other Creditors 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Security Expense 57 Income Summary 2. Post the journal entries to their respective ledger accounts. 3. Prepare a trial balance based on the balances derived after completing requirement #2. 4. The company presented the following adjustments and required you to preparing the adjusting entries in the general journal (Narration required for each journal entry): i. Insurance expired during 2023, $120,000. ii. Supplies on hand on December 31, 2023, $5,000. iii. Unpaid salary on December 31, 2023, $526,000 iv. Rent not expired on December 31, 2023, $70,000 v. Unearned fees on December 31, 2023, $400,000. 5. Post the adjusting entries to their respective ledger accounts already started in requirement # 2. 6. Prepare the adjusted trial balance. 7. Prepare all three 2023 financial statements for presentation to Mr. Zoukis 8. Journalize the closing entries and balance off the ledger accounts including the income summary account. 9. Prepare the post-closing trial balance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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