P3-43  This problem continues the Haupt Consulting situation from Problem 2-64 of Chapter 2.  Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18 as follows:

 

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HAUPT CONSULTING

Trial Balance

December 18, 2010

 

 Balance

Account TitleDebitCredit

Cash$8,100

Accounts Receivable1,700

Supplies300

Equipment2,000

Accumulated depreciation – equipment

Furniture3,600

Accumulated depreciation -furniture

Accounts Payable$3,900

Salary Payable

Unearned service revenue

Carl Haupt, Capital10,000

Carl Haupt, Withdrawals

Service Revenue2,500

Rent expense500

Utilities expense200

Salary Expense

Depreciation expense -equipment

Depreciation expense -furniture

Supplies expense

Total$16,400 $16,400

 

Later in December, the business completed these transactions, as follows:

 

Dec 21   Received $900 in advance for client service to be performed evenly over the next 30 days.

Dec 21   Hired secretary to be paid $1,500 on the 20th day of each month.  The secretary begins work immediately.

Dec 26   Paid $300 on account

Dec 28   Collected $600 on account

Dec 30   Owner withdrew $1,600

 

 

Required:

 

1.  Open these additional T-accounts:  Accumulated depreciation-equipment; Accumulated depreciation-furniture; Salary payable; Unearned service revenue; Depreciation expense-equipment; Depreciation expense-furniture; Supplies expense.

2.  Journalize the transactions of Dec 21-30.

3.  Post to the T-accounts, keying all items by date

4.  Prepare a trial balance at December 31.  Also set up columns for the adjustments and for the adjusted trial balance.

5.  At December 31, the business gathers the following information for the adjusting entries:

  a. Accrued service revenue, $4,00

  b.Earned $300 of the service revenue collected in advance on December 21

  c.Supplies on hand, $100

  d.Depreciation expense-equipment, $33; furniture, $60

  e.Accrued $700 expense for secretary’s salary

 

On your work sheet make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31. Throughout the book, to avoid rounding errors, we base adjusting entries on 30-day months and 360-day years. 

 

6.  Journalize and post the adjusted entries.  In the T-accounts denote each adjusting amount as Adj and an account balance as Bal.

7.  Prepare the income statement and the statement of owner’s equity of Haupt Consulting for the month ended December 31, 2010, and prepare the balance sheet at that date.  

 

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