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    Q4. Module 1

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    Azadeh Akbari
    The document contains journal entries and financial statements for Benny's Time Management Consulting Company for the year ended December 31, 2016. Journal entries record various expenses, revenue, and closing entries. The adjusted trial balance, income statement, statement of retained earnings, and statement of financial position are provided. Closing entries move revenues and expenses to an income summary account and net income to retained earnings.

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    Q4. Module 1

    Uploaded by

    Azadeh Akbari
    54 views5 pages
    The document contains journal entries and financial statements for Benny's Time Management Consulting Company for the year ended December 31, 2016. Journal entries record various expenses, revenue, and closing entries. The adjusted trial balance, income statement, statement of retained earnings, and statement of financial position are provided. Closing entries move revenues and expenses to an income summary account and net income to retained earnings.

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    Intermediate Accounting 1

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    The document contains journal entries and financial statements for Benny's Time Management Consulting Company for the year ended December 31, 2016. Journal entries record various expenses, revenue, and closing entries. The adjusted trial balance, income statement, statement of retained earnings, and statement of financial position are provided. Closing entries move revenues and expenses to an income summary account and net income to retained earnings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    54 views5 pages

    Q4. Module 1

    Uploaded by

    Azadeh Akbari
    The document contains journal entries and financial statements for Benny's Time Management Consulting Company for the year ended December 31, 2016. Journal entries record various expenses, revenue, and closing entries. The adjusted trial balance, income statement, statement of retained earnings, and statement of financial position are provided. Closing entries move revenues and expenses to an income summary account and net income to retained earnings.

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    A.

     To record 1 month of insurance expense for November-December 2016:


    Insurance expense 200
    Prepaid insurance 200

    To record YE inventory:


    Supplies expense 1,050
    Supplies (inventory) 1,050

     To record Depreciation of equipment:


    Depreciation expense - Equipment 375
    Accumulated depreciation - Equipment 375

     To record Earned revenue:


    Unearned Consulting fees 250
    Consulting revenue 250

     To record accrual salary:


    Salaries expense 210
    Salaries Payable 210


    To record unbilled revenue:
    Account receivable 1,800
    Unearned revenue 1,800

    B.
    1.
    Benny’s Time Management Consulting Company
    Adjusted Trial Balance
    December 31, 2016
    Debit Credit
    Cash $7,950
    Accounts Receivable 1,800
    Prepaid Insurance 2,200
    Supplies 2,670
    Equipment 26,000
    Accumulated Depreciation, equipment 375
    Accounts Payable 6,200
    Salaries Payable 210
    Unearned Consulting fees 2,750
    Common Shares 10,000
    Retained Earnings 19,600
    Consulting Revenue 5,950
    Depreciation Expense – Equipment 375
    Salaries Expense 1,610
    Insurance Expense 200
    Rent expense 1,000
    Supplies expense 1,050
    Utilities expense 230
    $45,085 $45,085

    Calculations:
    Accounts Receivable: 0+$1,800= $1,800
    Prepaid Insurance: $2,400 – 200=$2,200
    Supplies expense: 0+$1,050=$1,050
    Accumulated Depreciation, equipment= 0+ $375=$375
    Depreciation expense, equipment = 0+ $375=$375
    Salaries Payable: 0+$210 = $210
    Salaries expense: $1,400+210= $1,610
    Unearned Consulting fees: $3,000-250=$2,750
    Consulting revenue: $3,900+250+1,800=$5,950
    2.
    Benny’s Time Management Consulting Company
    Income Statement
    For the Year Ended December 31, 2016

    Revenues
    Consulting revenue $5,950
    Expenses
    Depreciation Expense – Equipment 375
    Salaries Expense 1,610
    Insurance Expense 200
    Rent expense 1,000
    Supplies expense 1,050
    Utilities expense 230
    Total Expenses 4,465
    Net Income $1,485

    3.
    Benny’s Time Management Consulting Company
    Statement of Retained Earnings
    For the Year Ended December 31, 2016

    Retained earnings, January 1 $19,600


    Add: Net Income 1,485
    Retained earnings, December 31 $21,085

    4.
    Benny’s Time Management Consulting Company
    Statement of Financial Position
    December 31, 2016

    Assets
    Current Assets
    Cash $7,950
    Accounts Receivable 1,800
    Supplies 2,670
    Total current assets 12,420
    Prepaid Insurance 2,200
    Equipment 26,000
    Less: Accumulated Depreciation, equipment (375) 25,625
    Total assets $40,245

    Liabilities and Shareholders’ Equity


    Current liabilities
    Accounts Payable 6,200
    Salaries Payable 210
    Unearned Consulting fees 2,750
    Total shareholder’s equity $9,160
    Shareholder’s equity
    Common Shares 10,000
    Retained Earnings 21,085
    Total Shareholder’s equity $31,085
    Total liabilities and shareholders’ equity $40,245
    5. Closing journal entries:
    Revenues 5,950
    Income summary 5,950

    Income summary 4,465


    Depreciation Expense – Equipment 375
    Salaries Expense 1,610
    Insurance Expense 200
    Rent expense 1,000
    Supplies expense 1,050
    Utilities expense 230

    Income summary 1,485


    Retained earnings 1,485

    Calculation for Income summary last step:


    $5,950- 4,465 = $1,485

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