Question: Problem 1: Davis & Bell began a health clinic as a corporation in 2014. Several transactions which occurred early in 2014 are descibed below. Record each transaction in proper journal entry form, excluding written explanations.
Required: Record each transaction in proper journal entry form, excluding written explanations.
A 1/15/2014 Stockholders invested $90,000 in the business and received shares of common stock as evidence of ownership.
B 2/1/2014 Rent of $2,000 was paid for the month of February
C 2/10/2014 Equipment with a cost of $10,000 was purchased on credit; payment is due in 30 days.
D 2/14/2014 Fees totaling $5,500 were billed to patients; $3,000 was collected immediately and the balance of $2,500 is due within 30 days.
E 2/19/2014 Full payment was made for the equipment purchased on February 10th.
Problem 2: At year end, you have the following data for adjustments:
a. An analysis indicates that prepaid rent on December 31 should be $4,000
b. A physical inventory shows that $1,650 of office supplies is on hand.
c. Depreciation for 2014 is $40,000
d. An analysis indicates that unearned service revenue should be $6,500
e. Wages of $5,500 are owed but unpaid and unrecorded at year end.
f. Six month's interest at 5% on the note was paid on September 30. Interest for the period October 1 to December 31 is unpaid and unrecorded.
REQUIRED: 1. Prepare the adjusting entries.
2. After posting the adjusting entries, prepare an adjusted trial balance.
Problem 3: Required: (1) Prepare an Income Statement
(2) Prepare a Statement of Retained Earnings
(3) Prepare a Balance Sheet
Information related to above question is enclosed below:
Attachment:- MidtermExam-PartII.rar