The following are the trial balance and the other information related to Bruce Indigo, who operates a construction hauling business. INDIGO TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $31,000 Accounts Receivable 49,400 Allowance for Doubtful Accounts $2,900 Supplies 3,080 Prepaid Insurance 1,600 Equipment 26,500 Accumulated Depreciation—Equipment 6,250 Notes Payable 4,800 Owner’s Capital 45,760 Service Revenue 93,050 Rent Expense 10,400 Salaries and Wages Expense 28,800 Utilities Expenses 1,180 Office Expense 800 $152,760 $152,760 1. Fees received in advance from clients $4,400, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,300. 3. Equipment is being depreciated at 8% per year. 4. Bad debt expense for the year is $1,260. 5. Insurance expired during the year $480. 6. Indigo gave the bank a 90-day, 5% note for $4,800 on December 1, 2020. 7. Rent of the building is $800 per month. The rent for 2020 has been paid, as has that for January 2021. 8. Office salaries and wages earned but unpaid December 31, 2020, $1,400. Indigo withdrew $10,500 cash for personal use during the year. Prepare a statement of owner’s equity for 2020. (List items that increase owner's equity first.)
The following are the trial balance and the other information related to Bruce Indigo, who operates a construction hauling business. INDIGO TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $31,000 Accounts Receivable 49,400 Allowance for Doubtful Accounts $2,900 Supplies 3,080 Prepaid Insurance 1,600 Equipment 26,500 Accumulated Depreciation—Equipment 6,250 Notes Payable 4,800 Owner’s Capital 45,760 Service Revenue 93,050 Rent Expense 10,400 Salaries and Wages Expense 28,800 Utilities Expenses 1,180 Office Expense 800 $152,760 $152,760 1. Fees received in advance from clients $4,400, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,300. 3. Equipment is being depreciated at 8% per year. 4. Bad debt expense for the year is $1,260. 5. Insurance expired during the year $480. 6. Indigo gave the bank a 90-day, 5% note for $4,800 on December 1, 2020. 7. Rent of the building is $800 per month. The rent for 2020 has been paid, as has that for January 2021. 8. Office salaries and wages earned but unpaid December 31, 2020, $1,400. Indigo withdrew $10,500 cash for personal use during the year. Prepare a statement of owner’s equity for 2020. (List items that increase owner's equity first.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 48BE: Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for...
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The following are the
|
INDIGO |
||||||
|---|---|---|---|---|---|---|
|
Debit |
Credit |
|||||
| Cash | $31,000 | |||||
| 49,400 | ||||||
| Allowance for Doubtful Accounts | $2,900 | |||||
| Supplies | 3,080 | |||||
| Prepaid Insurance | 1,600 | |||||
| Equipment | 26,500 | |||||
| Accumulated Depreciation—Equipment | 6,250 | |||||
| Notes Payable | 4,800 | |||||
| Owner’s Capital | 45,760 | |||||
| Service Revenue | 93,050 | |||||
| Rent Expense | 10,400 | |||||
| Salaries and Wages Expense | 28,800 | |||||
| Utilities Expenses | 1,180 | |||||
| Office Expense | 800 | |||||
|
$152,760 |
$152,760 |
| 1. | Fees received in advance from clients $4,400, which were recorded as revenue. | |
| 2. | Services performed for clients that were not recorded by December 31, $4,300. | |
| 3. | Equipment is being depreciated at 8% per year. | |
| 4. | ||
| 5. | Insurance expired during the year $480. | |
| 6. | Indigo gave the bank a 90-day, 5% note for $4,800 on December 1, 2020. | |
| 7. | Rent of the building is $800 per month. The rent for 2020 has been paid, as has that for January 2021. | |
| 8. | Office salaries and wages earned but unpaid December 31, 2020, $1,400. |
Indigo withdrew $10,500 cash for personal use during the year.
Prepare a statement of owner’s equity for 2020. (List items that increase owner's equity first.)
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