Jerome Smith, Certified Public Accountant, assignment help
Jerome Smith, Certified Public Accountant, assignment help
Question 1
Jerome Smith, Certified Public Accountant, operates as a professional corporation (P.C.). The business completed these transactions during the first part of March, 20X6:
Mar 2 Received $7,000 cash from Smith, and issued ordinary shares to him.
2 Paid monthly office rent, $600.
3 Paid cash for a Dell computer, $2,400, with the computer expected to remain in service for five years.
4 Purchased office furniture on account, $7,500, with the furniture projected to last for five years.
5 Purchased supplies on account, $500.
9 Performed tax service for a client and received cash for the full amount of $1,200.
12 Paid utility expenses, $300.
18 Performed consulting service for a client on account, $2,100.
21 Received $1,800 in advance for tax work to be performed over the next 30 days.
21 Hired a secretary to be paid on the 15th day of each month.
26 Paid $500 for the supplies purchased on March 5.
28 Collected $2,100 from the client on March 18.
31 Declared and paid dividends of $1,400.
Requirements:
1. Journalize the transactions. Explanations are not required.
2. Post to the T-accounts. Key all items by date.
3. Prepare a trial balance at March 31, 20X6.
4. At March 31, gathers the following information for the adjusting entries:
a. Accrued service revenue, $1,600
b. Earned $600 of the service revenue collected in advance on March 21
c. Supplies on hand, $100
d. Depreciation expense equipment, $40; furniture, $125
e. Accrued expense for secretary’s salary, $600
Make these adjustments in the adjustments columns and complete the adjusted trial balance at January 31.
5. Journalize and post the adjusting entries. Denote each adjusting amount as Adj and an account balance as Bal.
6. Prepare the income statement and statement of changes in equity of Jerome Smith Certified Public Accountant, P.C., for the month ended March 31 and the classified balance sheet at that date.
7. Journalize and post the closing entries at March 31. Denote each closing amount as Clo and an account balance at Bal.
Notes to students:
Summary of Deliverables and marking guide:
Schedule Description Requirements Marks
Schedule A T-accounts 2 ,4, 5 and 7 18 marks
Schedule B Journal entries 1 12 marks
Schedule C Adjusted Trial Balance 3, 4 24 marks
Schedule D Journal entries 5 6 marks
Schedule E Financial Statements 6 34 marks
Schedule F Journal entries 7 6 marks
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Total 100 marks
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This will be the format of the paper: https://1drv.ms/w/s!Atf7Vg4SaeoHihvEyneVRQhudzOi
Thank you very much. Appreciated!
