Details of this Paper





CH A P T E R 2;Continuing Problem;P2-43 Journalizing transactions, posting to T-accounts, and preparing;a trial balance;Problem P2-43 continues with the consulting business of Carl Davis, begun in;Problem P1-54. Here you will account for Davis Consulting?s transactions as it is;actually done in practice.;Davis Consulting completed the following transactions during December 2014;Dec. 2 Owner contributed $18,000 cash in exchange for capital.;2 Paid monthly office rent, $550.;3 Paid cash for a computer, $1,800. This equipment is expected to remain in;service for five years.;4 Purchased office furniture on account, $4,200. The furniture should last for;five years.;5 Purchased office supplies on account, $900.;9 Performed consulting service for a client on account, $1,500.;12 Paid utilities expenses, $250.;18 Performed service for a client and received cash of $1,100.;21 Received $1,400 in advance for client service to be performed in the;future.;21 Hired an administrative assistant to be paid $2,055 on the 20th day of each;month. The secretary begins work immediately.;26 Paid $400 on account.;28 Collected $300 on account.;30 Davis withdrew cash of $1,400.;Requirements;1. Journalize the transactions, using the following accounts: Cash, Accounts;Receivable, Office Supplies, Equipment, Furniture, Accounts Payable;Unearned Revenue, Davis, Capital, Davis, Withdrawals, Service Revenue, Rent;Expense, and Utilities Expense. Explanations are not required.;2. Open a T-account for each of the accounts.;3. Post the journal entries to the T-accounts and calculate account balances.;Formal posting references are not required.;4. Prepare a trial balance as of December 31, 2014.;5. Prepare the income statement of Davis Consulting for the month ended;December 31, 2014.;6. Prepare the statement of owner?s equity for the month ended December 31;2014.;7. Prepare the balance sheet as of December 31, 2014.;8. Calculate the debt ratio for Davis Consulting.


Paper#79698 | Written in 18-Jul-2015

Price : $27