Gerdes Psychological Services Essay Example for Free

Gerdes Psychological Services EssayE3-1B (Transaction AnalysisService Company) Brown is a licensed CPA. During the first month of operations of her bloodline (a sole proprietorship), the following events and transactions occurred. April 3 Purchased supplies on count $1,610. 11 Completed a tax assignment and billed client $2,530 for services rendered. 12 Received $7,360 advance on a management consulting engagement. 17 Received cash of $5,290 for services completed for Calunga Co. 21 Paid insurance expense $253. 30 Owe the secretary-receptionist $2,668 for the month. 30 A count of supplies indicated that $276 of supplies had been used. 30 Purchased a new computer for $14,030(LO 4) InstructionsJournalize the transactions in the general journal. (Omit explanations.)Problem 3 E3-3B (Corrected Trial Balance) The trial residual of Cervantes Corporation, below, does not balance. CERVANTES CORPORATIONTRIAL BALANCEAPRIL 30, 2010 Debit CreditCash $11,824 Accounts Rece ivable 10,480 Supplies on Hand 5,934 Furniture and Equipment 12,200 Accounts due $14,088Common Stock 16,000Retained Earnings 4,000Service tax revenue 10,400Office Expense 8,640 $49,078 $44,488An examination of the ledger shows these errors. 1. Cash received from a customer on account was recorded as $2,760 instead of $3,660. 2. The purchase on account of a computer costing $6,400 was recorded as a account to Office Expense and a credit to Accounts Payable. 3. Services were performed on account for a client, $4,500, for which Accounts Receivable was debited $4,500 and Service Revenue was credited $450. 4. A payment of $190 for telephone charges was entered as a debit to Office Expenses and a debit to Cash. 5. The Service Revenue account was totaled at $10,400 instead of $10,560.(LO 4) InstructionsFrom this information prepare a corrected trial balanceProblem 4 E3-5B (Adjusting Entries) The ledger of Chan Rental operation on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit CreditPrepaid Insurance $ 2,700 Supplies 2,100 Equipment 18,750 Accumulated DepreciationEquipment $ 6,300Notes Payable 15,000Ungain Rent Revenue 6,975Rent Revenue 45,000Interest Expense 0 Wage Expense 10,500 An analysis of the accounts shows the following. 1. The equipment depreciates $188 per month. 2. One-third of the unearned rent was earned during the quarter. 3. Interest of $375 is accrued on the notes payable. 4. Supplies on hand total $637.5. Insurance expires at the rate of $225 per month.(LO 5) InstructionsPrepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. extra accounts are Depreciation Expense Insurance Expense Interest Payable and Supplies Expense. Problem 5 E3-8B (Adjusting Entries) Dement is the new owner of Fung Computer Services. At the end of swaggering 2010, his first month of ownership, Dement is trying to prepare monthly f inancial statements. Below is some informationrelated to unrecorded expenses that the business incurred during August. 1. At August 31, Dement owed his employees $2,280 in wages that will be paid on September 1. 2. At the end of the month he had not yet received the months utility bill. base on past experience, he estimated the bill would be approximately $720. 3. On August 1, Dement borrowed $36,000 from a local bank on a 15-year mortgage. The annual relate rate is 6%. 4. A telephone bill in the amount of $140 covering August charges is unpaid at August 31.5.During August, Dement earned $ curtilage of $6000 that was received from a client at the end of July.(LO 5) InstructionsInstructionsPrepare the adjusting journal entries as of August 31, 2010, suggested by the information above.