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On August 1, 2012, Ken Wade created a new house sitting agency




Question;I need answer for question 4-7 onlyOn August 1, 2012, Ken Wade created a new house sitting agency, Wade?s WatchdogService. The following transactions occurred during the company?s first month:Aug. 1 Wade invested $15,000 cash and computer equipment worth $2,500.Rented furnished office space by paying $800 cash for the first month?s rent.Purchased $350 of office supplies for cash.Paid $4,800 cash for the premium on a 12-month insurance policy. Coveragebegins on August 6.14 Paid $2,200 cash for two weeks? salaries earned by employees.24 Collected $5,000 cash for house sitting services provided to customers.28 Paid another $2,200 cash for two weeks?salaries earned by employees..29 Paid this month?s $150 telephone bill in cash.31 Paid $500 cash to repair the company?s computer.31 Wade withdrew $750 cash from the business for personal use.The company?s chart of accounts included the following:233101 Cash106 Accounts Receivable124 Office Supplies128 Prepaid Insurance167 Computer Equipment168 Accum. Depr. ? Computer Equip.209 Salaries Payable301 K. Wade, Capital302 K. Wade, Withdrawals405 Service Fees Earned612 Depreciation Expense ? Computer Equip.622 Salaries Expense637 Insurance Expense640 Rent Expense650 Office Supplies Expense684 Repairs Expense688 Telephone Expense901 Income SummaryRequired1. Use the T-account format to set up each account listed in its chart of accounts.2. Prepare journal entries to record the transactions for August and post them to the Taccounts. The company records prepaid and unearned items in balance sheet accounts.3. Prepare an unadjusted trial balance as of August 31.4. Use the following information to journalize and post adjusting entries for the month:a. One-half of one month?s insurance coverage has expired.b. At the end of the month, $60 of office supplies are still availablec. This month?s depreciation on the computer equipment is $200.d. Employees earned $350 of unpaid and unrecorded salaries as of month-end..e. The company earned $4,720 of fees that are not yet billed at month-end.5. Prepare the income statement, the statement of owner?s equity for August, and thebalance sheet at August 31, 2008.6. Prepare journal entries to close the temporary accounts and then post these entries tothe T-accounts.7. Prepare a post-closing trial balance.


Paper#43465 | Written in 18-Jul-2015

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