Question :
Caleb Company's fiscal year runs from January through December. Its January 1, 2013's trial balances are below:
Summary of transactions that occurred during the year are below:
|
Account Title
|
Debits
|
Credits
|
|
Cash
|
$30,000
|
|
Accounts Receivable
|
15,000
|
|
Equipment
|
20,000
|
|
Accumulated Depreciation
|
$ 6,000
|
|
Salaries Payable
|
9,000
|
|
Common Stock
|
40,500
|
|
Retained Earnings
|
9,500
|
|
Total
|
$ 65,000
|
$ 65,000
|
Summary of transactions that occurred during the year are below:
|
a. Sales of services
|
$100,000
|
|
Out of the sales, credit sales was
|
30,000
|
|
b. Accounts Receivable collected
|
27,300
|
|
c. Shares issued for cash
|
10,000
|
|
d. Salaries paid
|
50,000
|
|
Out of the salaries paid, Salaries Payable amount was
|
9,000
|
|
e. Miscellaneous Expense paid
|
24,000
|
|
f. Equipment Purchased
|
15,000
|
|
g. Cash Dividends paid
|
2,500
|
Other pertinent information:
|
Year-end accrued salaries
|
$ 1,000
|
|
Equipment Depreciation
|
2,000
|
Required:
Using the template provided by the instructor,
Set up the necessary T- accounts and enter the beginning balances from the trial balance provided.
Prepare a journal entry for each of the summary of transactions listed above.
Post the journal entries to the T-accounts.
Prepare an unadjusted trial balance.
Prepare and post adjusting journal entries. Enter the adjusting entries in the T-accounts as applicable. The two adjusting entries are the year-end accrued salaries and equipment depreciation provided in the question.
Prepare an adjusted trial balance.
Prepare an income statement for year ended 2013 and a balance sheet as of December 31, 2013.
Prepare and post closing entries.
Prepare a post- closing trial balance.