QUESTION NO 1: Nayatel is a Premium Triple Play (Internet, Cable TV, Phone) Service provider. High Speed FTTH Internet Infrastructure in Islamabad, Rawalpindi, Faisalabad and many other cities of Pakistan. All members pay in advance to be listed in the database. Advance payments are credited to an account entitled Unearned Member Dues. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, 2018, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2018, but not for December.) Adjusting entries Data: Records show that Rs.2500 in Broad band revenue had not yet been billed or recorded as of December 31. Record shows that Rs.10,000 of cash receipts originally recorded as unearned revenue had been earned as of Dec 31, 2018. All Computer equipments were purchased when the business first formed. The estimated life of equipment at that time was three years (36 months). Nayatel paid Rs.21900 rent on November 01, 2018 the through January 31, 2019. Office supplies on hand at December 31 amount to Rs.440. On March 01, 2018, the company borrowed Rs.100,000 by signing a 12 months, 10 percent note payable. The entire note plus 12 months accrued interest is due on march 01, 2019. Estimated income tax expense for entire year totals Rs.16000. Taxes are due in the first quarter of 2019. NAYATEL UNADJUSTED TRIAL BALANCE DECEMBER 31, 2018 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance S. No Particulars Dr Cr Dr Cr Dr Cr 01 Cash Rs.169500 02 Unexpired Insurance 12800 03 Prepaid rent 14600 04 Office supplies 2160 05 Computer Equipments 108000 06 Accumulated Depreciation: Computer equipment 54000 07 Accounts payable 4300 08 Notes payable 90000 09 Interest payable 6750 10 Income tax payable 7500 11 Unearned member dues 36000 12 Capital stock 40000 13 Retained Earnings 28000 14 Client fees earned 508450 15 Advertising expense 17290 16 Insurance expense 35200 17 Rent expense 80300 18 Office supplies expense 15400 19 Internet connection expense 27000 20 Depreciation expense: Computer equipment 33000 21 Salaries expense 239000 22 Interest expense 6750 23 Income Tax expense 14000 Total 772000 775000 Required: Prepare the necessary Adjusting entries for each of the above transaction. Prepare Adjusted Trial Balance with the help of worksheet given above.

QUESTION NO 1: Nayatel is a Premium Triple Play (Internet, Cable TV, Phone) Service provider. High Speed FTTH Internet Infrastructure in Islamabad, Rawalpindi, Faisalabad and many other cities of Pakistan. All members pay in advance to be listed in the database. Advance payments are credited to an account entitled Unearned Member Dues. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, 2018, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2018, but not for December.) Adjusting entries Data: Records show that Rs.2500 in Broad band revenue had not yet been billed or recorded as of December 31. Record shows that Rs.10,000 of cash receipts originally recorded as unearned revenue had been earned as of Dec 31, 2018. All Computer equipments were purchased when the business first formed. The estimated life of equipment at that time was three years (36 months). Nayatel paid Rs.21900 rent on November 01, 2018 the through January 31, 2019. Office supplies on hand at December 31 amount to Rs.440. On March 01, 2018, the company borrowed Rs.100,000 by signing a 12 months, 10 percent note payable. The entire note plus 12 months accrued interest is due on march 01, 2019. Estimated income tax expense for entire year totals Rs.16000. Taxes are due in the first quarter of 2019. NAYATEL UNADJUSTED TRIAL BALANCE DECEMBER 31, 2018 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance S. No Particulars Dr Cr Dr Cr Dr Cr 01 Cash Rs.169500 02 Unexpired Insurance 12800 03 Prepaid rent 14600 04 Office supplies 2160 05 Computer Equipments 108000 06 Accumulated Depreciation: Computer equipment 54000 07 Accounts payable 4300 08 Notes payable 90000 09 Interest payable 6750 10 Income tax payable 7500 11 Unearned member dues 36000 12 Capital stock 40000 13 Retained Earnings 28000 14 Client fees earned 508450 15 Advertising expense 17290 16 Insurance expense 35200 17 Rent expense 80300 18 Office supplies expense 15400 19 Internet connection expense 27000 20 Depreciation expense: Computer equipment 33000 21 Salaries expense 239000 22 Interest expense 6750 23 Income Tax expense 14000 Total 772000 775000 Required: Prepare the necessary Adjusting entries for each of the above transaction. Prepare Adjusted Trial Balance with the help of worksheet given above.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...

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QUESTION NO 1:

Nayatel is a Premium Triple Play (Internet, Cable TV, Phone) Service provider. High Speed FTTH Internet Infrastructure in Islamabad, Rawalpindi, Faisalabad and many other cities of Pakistan. All members pay in advance to be listed in the database. Advance payments are credited to an account entitled Unearned Member Dues. Adjusting entries are performed on a monthly basis. An unadjusted trial balance dated December 31, 2018, follows. (Bear in mind that adjusting entries have already been made for the first 11 months of 2018, but not for December.)

Adjusting entries Data:

Records show that Rs.2500 in Broad band revenue had not yet been billed or recorded as of December 31.
Record shows that Rs.10,000 of cash receipts originally recorded as unearned revenue had been earned as of Dec 31, 2018.
All Computer equipments were purchased when the business first formed. The estimated life of equipment at that time was three years (36 months).
Nayatel paid Rs.21900 rent on November 01, 2018 the through January 31, 2019.
Office supplies on hand at December 31 amount to Rs.440.
On March 01, 2018, the company borrowed Rs.100,000 by signing a 12 months, 10 percent note payable. The entire note plus 12 months accrued interest is due on march 01, 2019.
Estimated income tax expense for entire year totals Rs.16000. Taxes are due in the first quarter of 2019.

NAYATEL

UNADJUSTED TRIAL BALANCE

DECEMBER 31, 2018

Unadjusted Trial Balance	Adjusting Entries	Adjusted Trial Balance
S. No	Particulars	Dr	Cr	Dr	Cr	Dr	Cr
01	Cash	Rs.169500
02	Unexpired Insurance	12800
03	Prepaid rent	14600
04	Office supplies	2160
05	Computer Equipments	108000
06	Accumulated Depreciation: Computer equipment		54000
07	Accounts payable		4300
08	Notes payable		90000
09	Interest payable		6750
10	Income tax payable		7500
11	Unearned member dues		36000
12	Capital stock		40000
13	Retained Earnings		28000
14	Client fees earned		508450
15	Advertising expense	17290
16	Insurance expense	35200
17	Rent expense	80300
18	Office supplies expense	15400
19	Internet connection expense	27000
20	Depreciation expense: Computer equipment	33000
21	Salaries expense	239000
22	Interest expense	6750
23	Income Tax expense	14000
	Total	772000	775000

Required:

Prepare the necessary Adjusting entries for each of the above transaction.
Prepare Adjusted Trial Balance with the help of worksheet given above.

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