1.
Pass necessary journal entries to record the transactions.
1.
Explanation of Solution
Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.
Accounting rules for Journal entries:
- To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.
- To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.
Pass necessary journal entries to record the transactions.
Table (2)
Table (2)
2.
Prepare T accounts using the
2.
Explanation of Solution
Prepare T accounts using the trial balance information and an adjusted trial balance.
Cash | ||
Beginning balance  570 |  |  |
| Â | Â |
f.2                               3 | e.      4 |  |
Ending balance      666 |  |  |
Table (3)
Accounts Receivable | ||
Beginning balance  373 |
| Â |
Ending balance      370 |  |  |
Table (3)
Allowance for doubtful accounts | ||
 | Balance 570 |  |
b   3 | c              6 |  |
Balance 21 | Â |
Table (3)
Inventories | ||
Beginning balance  539 |
| Â |
Ending balance      370 |  |  |
Table (4)
Prepaid Expenses | ||
Beginning balance  59 |  |  |
Ending balance      59 |  |  |
Table (5)
Land | ||
Beginning balance  22 |  |  |
Ending balance      22 |  |  |
Table (6)
Building | ||
Beginning balance  189 |  |  |
Ending balance      189 |  |  |
Table (7)
Equipment | ||
Beginning balance  360
| f.2.      20 |  |
Ending balance      354 |  |  |
Table (8)
Balance           222 |  | |
 | f.1.                      4 |  |
f.2                               16 | h.                       21 |  |
Balance      231 |  |
Table (9)
Software | ||
Beginning balance  90 |
| Â |
Ending balance      60 |  |  |
Table (10)
Patents | ||
Beginning balance       1 |  |  |
Ending balance            1 |  |  |
Table (11)
Beginning balance  161 |  |  |
Ending balance      161 |  |  |
Table (12)
Accounts Payable | ||
Balance           252 |  | |
 | e.                      10 |  |
Balance           262 |  |
Table (13)
Accrued Liabilities | ||
Balance           182 |  | |
Balance           182 |  |
Table (14)
Income Tax Payable | ||
Balance             16 |  | |
 | i.                       33 |  |
Balance           49 |  |
Table (15)
Long term Debt | ||
Balance           49 |  | |
Balance           49 |  |
Table (16)
Common Stock | ||
Balance              3 |  | |
Balance              3 |  |
Table (17)
Additional paid in capital | ||
Balance           243 |  | |
Balance           243 |  |
Table (18)
Balance            1,107 |  | |
Balance            1,107 |  |
Table (19)
Sales Revenue | ||
Balance            2,847 a.                         100 |  | |
Balance            2,587 |  |
Table (20)
Credit Card Discounts | ||
Beginning balance  53
| Â | Â |
Ending balance       56 |  |  |
Table (21)
Cost of sales | ||
Beginning balance 1,306 d.                        169 |  |  |
Ending balance     1,475 |  |  |
Table (22)
Advertising Expense | ||
Beginning balance  145 |  |  |
Ending balance       145 |  |  |
Table (23)
Utilities Expense | ||
Beginning balance     85 |  |  |
Ending balance          85 |  |  |
Table (24)
Wages Expense | ||
Beginning balance  625 |  |  |
Ending balance       625 |  |  |
Table (25)
Depreciation Expense | ||
Beginning balance      0 f.1.                              4 h.                               21 |  |  |
Ending balance         25 |  |  |
Table (26)
Amortisation Expense | ||
Beginning balance      0 g.                               30 |  |  |
Ending balance         30 |  |  |
Table (27)
Interest Expense | ||
Beginning balance      1 |  |  |
Ending balance           1 |  |  |
Table (28)
Beginning balance      0  C                                6 |  |  |
Ending balance           6 |  |  |
Table (28)
Loss of sale of equipment | ||
Beginning balance      0 f.2.                               1 |  |  |
Ending balance           1 |  |  |
Table (29)
Income Tax Expense | ||
Beginning balance      0 f.2.                            33 |  |  |
Ending balance        33 |  |  |
Table (30)
Table (31)
3.
Prepare an income statement, statement of
3.
Explanation of Solution
Prepare an income statement for OS Inc.
Table (32)
Prepare a statement of stockholders’ equity for OS Inc.
Table (33)
Prepare a balance sheet for OS Inc.
Table (34)
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