Related questions with answers

The unadjusted trial balance for All Mopped Up Company, a cleaning service, is as follows:

\begin{array}{c} \textbf{ALL MOPPED UP COMPANY}\\ \textbf{Unadjusted Trial Balance}\\ \textbf{December 31, 2018} \end{array}

\begin{array}{lrr} {\textbf{Account Title}}&\textbf{Debit\hspace{6pt}}&\textbf{Credit\hspace{4pt}}\\ \text{Cash}&\text{\$\hspace{18pt}800}\\ \text{Office Supplies}&\text{2,000}\\ \text{Prepaid Insurance}&\text{600}\\ \text{Equipment}&\text{30,000}\\ \text{Accumulated Depreciation- Equipment}&&\text{\$\hspace{10pt}2,000}\\ \text{Accounts Payable}&&\text{2,400}\\ \text{Salaries Payable}\\ \text{Unearned Revenue}&&\text{700}\\ \text{Common Stock}&&\text{15,300}\\ \text{Dividends}&\text{5,000}\\ \text{Service Revenue}&&\text{25,000}\\ \text{Salaries Expense}&\text{7,000}\\ \text{Supplies Expense}\\ \text{Depreciation Expense- Equipment}\\ \text{Insurance Expense}&\text{\underline{\hspace{38pt}}}&\text{\underline{\hspace{38pt}}}\\ \text{Total}&\underline{\underline{\$\hspace{5pt}\text{45,400}}}&\underline{\underline{\$\hspace{5pt}\text{45,400}}}\\ \end{array}

During the 12 months ended December 31, 2018, All Mopped Up:

a. used office supplies of $1,700.
b. used prepaid insurance of$580.
c . depreciated equipment, $500.
d. accrued salaries expense of$310 that hasn't been paid yet.
e. earned $400 of unearned revenue.

Requirements

Open a T-account for each account using the unadjusted balances.
Journalize the adjusting entries using the letter and December 31 date in the date column.
Post the adjustments to the T-accounts, entering each adjustment by letter. Show each account's adjusted balance.

Alcorn Service Company was formed on January 1, 2016.

Events Affecting the 2016 Accounting Period

1. Acquired $20,000 cash from the issue of common stock.

2. Purchased$800 of supplies on account.

3. Purchased land that cost $14,000 cash.

4. Paid$800 cash to settle accounts payable created in Event 2.

5. Recognized revenue on account of $10,500.

6. Paid$3,800 cash for other operating expenses.

7. Collected $7,000 cash from accounts receivable.

Information for 2016 Adjusting Entries

8. Recognized accrued salaries of$3,600 on December 31, 2016.

9. Had $100 of supplies on hand at the end of the accounting period.

Events Affecting the 2017 Accounting Period

1. Acquired$15,000 cash from the issue of common stock.

2. Paid $3,600 cash to settle the salaries payable obligation.

3. Paid$9,000 cash in advance to lease office space.

4. Sold the land that cost $14,000 for$14,000 cash.

5. Received $6,000 cash in advance for services to be performed in the future.

6. Purchased$2,400 of supplies on account during the year.

7. Provided services on account of $24,500.

8. Collected$12,600 cash from accounts receivable.

9. Paid a cash dividend of $2,000 to the stockholders.

10. Paid other operating expenses of$2,850.

Information for 2017 Adjusting Entries

11. The advance payment for rental of the office space (see Event 3) was made on March 1 for a one-year term.

12. The cash advance for services to be provided in the future was collected on October 1 (see Event 5). The one-year contract started on October 1.

13. Had $300 of supplies remaining on hand at the end of the period.

14. Recognized accrued salaries of$4,800 at the end of the accounting period.

15. Recognized $500 of accrued interest revenue.

Required

Identify each event affecting the 2016 and 2017 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Record the effects of each event under the appropriate general ledger account headings of the accounting equation.

The following accounts and balances were drawn from the records of Barker Company at December 31, 2016:

\begin{array}{lrlr} \text{Supplies}&\$ \hspace{2pt}1,000 & \text{Beginning retained earnings} & \$ \hspace{2pt}9,300\\ \text{Cash flow from investing act.}&\text{(5,200)} & \text{Cash flow from financing act.} & \text{(5,000)}\\ \text{Prepaid insurance}&\text{1,200} & \text{Rent expense} & \text{2,500}\\ \text{Service revenue}&\text{65,200} & \text{Dividends} & \text{3,000}\\ \text{Other operating expenses}&\text{41,000} & \text{Cash} & \text{48,000}\\ \text{Supplies expense}&\text{1,100} & \text{Accounts receivable} & \text{14,200}\\ \text{Insurance expense}&\text{2,100} & \text{Prepaid rent} & \text{4,800}\\ \text{Beginning common stock}&\text{40,000} & \text{Unearned revenue} & \text{6,400}\\ \text{Cash flow from operating act.}&\text{15,600} & \text{Land} & \text{24,000}\\ \text{Common stock issued}&\text{5,000} & \text{Accounts payable} & \text{17,000}\\ \end{array}

Required

Use the accounts and balances from Barker Company to construct an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows (show only totals for each activity on the statement of cash flows).