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    Problem 3

    Uploaded by

    Omelkhair Yahya
    The document shows the trial balance, adjustments, balance sheet, income statement, and closing entries for Guitar Doc. Key details include: - Service income of $400,000 and expenses of $40,000 for supplies, $210,000 for salaries, and $10,000 for bad debts, resulting in net income of $140,000. - Assets include $70,000 cash, $130,000 accounts receivable, $20,000 prepaid supplies. Liabilities are $30,000 salaries payable. Equity is owner Ms. Yama's $180,000 capital. - Closing entries transfer income and expenses to equity, resulting in Ms. Yama

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Problem 3

    Uploaded by

    Omelkhair Yahya
    150 views7 pages
    The document shows the trial balance, adjustments, balance sheet, income statement, and closing entries for Guitar Doc. Key details include: - Service income of $400,000 and expenses of $40,000 for supplies, $210,000 for salaries, and $10,000 for bad debts, resulting in net income of $140,000. - Assets include $70,000 cash, $130,000 accounts receivable, $20,000 prepaid supplies. Liabilities are $30,000 salaries payable. Equity is owner Ms. Yama's $180,000 capital. - Closing entries transfer income and expenses to equity, resulting in Ms. Yama

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    Problem-3

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    The document shows the trial balance, adjustments, balance sheet, income statement, and closing entries for Guitar Doc. Key details include: - Service income of $400,000 and expenses of $40,000 for supplies, $210,000 for salaries, and $10,000 for bad debts, resulting in net income of $140,000. - Assets include $70,000 cash, $130,000 accounts receivable, $20,000 prepaid supplies. Liabilities are $30,000 salaries payable. Equity is owner Ms. Yama's $180,000 capital. - Closing entries transfer income and expenses to equity, resulting in Ms. Yama

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    150 views7 pages

    Problem 3

    Uploaded by

    Omelkhair Yahya
    The document shows the trial balance, adjustments, balance sheet, income statement, and closing entries for Guitar Doc. Key details include: - Service income of $400,000 and expenses of $40,000 for supplies, $210,000 for salaries, and $10,000 for bad debts, resulting in net income of $140,000. - Assets include $70,000 cash, $130,000 accounts receivable, $20,000 prepaid supplies. Liabilities are $30,000 salaries payable. Equity is owner Ms. Yama's $180,000 capital. - Closing entries transfer income and expenses to equity, resulting in Ms. Yama

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    © All Rights Reserved
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    Accounts Title dr cr Cash Accounts Receivable

    Cash 100,000 100,000 60,000 400,000 270,000


    Ms Yama, Capital 100,000 270,000 60,000 130,000
    180,000
    supplies expense 60,000 370,000 300,000
    cash 60,000 70,000

    Accounts Receivable 400,000


    Service Income 400,000

    Cash 270,000
    Accounts Receivable 270,000

    Ms Yama, Drawing 60,000


    Cash 60,000

    Salaries Expense 180,000


    Cash 180,000
    Ms Yama, Capital Ms Yama, Drawing Service Income Supplies Expense Salaries Expense
    100,000 60,000 400,000 60,000 180,000
    100,000 60,000 400,000 60,000 180,000
    Salaries Expense
    Accounts Title Unadjusted Trial Balance Adjustments Adjusted Trial Balance
    Cash 70,000 70,000
    Account Receivable 130,000 130,000
    Ms Yama, Capital 100,000
    Ms Yama, Drawing 60,000 60,000
    Service Income 400,000
    Supplies Expense 60,000 20,000 40,000
    Salaries expense 180,000 30,000 210,000
    500,000 500000
    adjustments:
    Bad debt Expense 10,000 10,000
    Allowance for Bad debts 10,000
    Prepaid Supplies 20,000 20,000
    Salaries Payable 30,000
    60000 60000 540,000
    Adjusted Trial Balance Balance Sheet Income Statement Closing Entries Post Closing-Trial Balance
    70,000 70,000
    130,000 130,000
    100,000 100,000 60,000 140,000
    60,000 60,000
    400,000 400,000 400,000
    40,000 40,000
    210,000 210,000

    10,000 10,000
    10,000 10,000 10,000
    20,000 20,000
    30,000 30,000
    540000 280,000 140000 260,000 400000 460,000 460,000
    140,000 140,000
    280000 400,000 400000
    Service Income 400,000 Ms Yama, Capital
    Supplies Expense 40,000 60,000 100,000
    Salaries expense 210,000 140,000
    Bad debt Expense 10,000 60,000 240,000
    Income Summary(Squeeze) 140,000 180,000
    To close the Income and Expense Account to Income Summary

    Ms Yama, Capital 60,000


    Ms Yama, Drawing 60,000

    Income Summary 140,000


    Ms Yama, Capital 140,000

    Post Closing Trial Balance

    Ms Yama, Capital 100,000


    Add: Net Income 140,000
    Less: Ms Yama, Drawing -60,000
    Ms Yama, Capital, Ending 180,000

    Cash 70,000
    Account Receivable 130,000
    Allowance for Bad debts 10,000
    Prepaid Supplies 20,000
    Salaries Payable 30,000
    Ms Yama, Capital 180,000
    Total 220,000 220000

    Guitar Doc
    Statement of Financial Position
    As of december 31, 2021
    Assets
    Cash 70,000
    Account Receivable 130,000
    Allowance for Bad debts -10,000
    Prepaid Supplies 20,000
    Total Assets 210,000

    Liabilities and Equity

    Liability
    Salaries Payable 30,000
    Total Liability 30,000

    Equity
    Ms Yama, Capital End 180,000
    Total Equity 180,000

    Total Liabilities and Equity 210,000

    Guitar Doc
    Statement of Financial Operation
    For The Year ended December 31, 2021

    Income
    Service Income 400,000

    Expenses
    Supplies Expense 40,000
    Salaries expense 210,000
    Bad debt Expense 10,000
    Total expenses 260,000

    Profit for the Period 140,000

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