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Instructions: The Data Needed To Determine Year-End Adjustments Are As Follows

1. The document provides instructions for adjusting the trial balance and financial statements for a legal consulting company. It includes adjusting entries needed and instructions to prepare an adjusted trial balance, income statement, statement of owner's equity, and balance sheet. It also includes calculating the percentage of total revenue to total assets. 2. The document also provides transactions for a cardiologist's practice for the month of April 2005. It includes instructions to open the ledger accounts, journalize the transactions, post to the ledger, and prepare a trial balance.

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132 views2 pages

Instructions: The Data Needed To Determine Year-End Adjustments Are As Follows

1. The document provides instructions for adjusting the trial balance and financial statements for a legal consulting company. It includes adjusting entries needed and instructions to prepare an adjusted trial balance, income statement, statement of owner's equity, and balance sheet. It also includes calculating the percentage of total revenue to total assets. 2. The document also provides transactions for a cardiologist's practice for the month of April 2005. It includes instructions to open the ledger accounts, journalize the transactions, post to the ledger, and prepare a trial balance.

Uploaded by

yoantan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1. Q1. Heritage Company offers legal consulting advice to death-row inmates.

Heritage
Company prepared the following trial balance at April 30, 2006, the end of the current fiscal
year:

 The data needed to determine year-end adjustments are as follows:


A. Accrued fees revenue at April 30 are $2,800.
B. Insurance expired during the year is $450.
C. Supplies on hand at April 30 are $650.
D. Depreciation of building for the year is $1,620.
E. Depreciation of equipment for the year is $3,500.
F. Accrued salaries and wages at April 30 are $1,800.
G. Unearned rent at April 30 is $1,500.
Instructions
1. Journalize the adjusting entries, adding accounts as needed.
2. Prepare an adjusted trial balance of April 30, 2006.
3. Prepare an income statement for the year ended April 30.
4. Prepare a statement of owner’s equity for the year ended April 30. No additional
investments were made during the year.
5. Prepare a balance sheet as of April 30.
6. Compute the percent of total revenue to total assets for the year.
 Q2. J. F. Outz, M.D., has been practicing as a cardiologist for three years. During April,
2005, Outz completed the following transactions in her practice of cardiology. April 1. Paid
office rent for April, $800.
A. April 1. Purchased equipment on account, $2,100.
B. April 2. Received cash on account from patients, $3,150.
C. Purchased X-ray film and other supplies on account, $245.
D. One of the items of equipment purchased on April 3 was defective. It was returned with
the permission of the supplier, who agreed to reduce the account for the amount charged
for the item, $325.
E. 12. Paid cash to creditors on account, $1,250.
F. 17. Paid cash for renewal of a six-month property insurance policy, $370.
G. 20. Discovered that the balances of the cash account and the accounts payable account as
of April 1 were overstated by $200. A payment of that amount to a creditor in March had
not been recorded. Journalize the $200 payment as of April 20.
H. 24. Paid cash for laboratory analysis, $545.
I. 27. Paid cash from business bank account for personal and family expenses, $1,250.
J. 30. recorded the cash received in payment of services (on a cash basis) to patients during
April, $1,720.
K. 30. Paid salaries of receptionist and nurses, $1,725.
L. 30. Paid various utility expenses, $360.
M. 30. Recorded fees charged to patients on account for services performed in April, $5,145.
N. 30. Paid miscellaneous expenses, $132.
Outz’s account titles, numbers, and balances as of April 1 (all normal balances) are listed as
follows: Cash, 11, $4,123; Accounts Receivable, 12, $6,725; Supplies, 13, $290; Prepaid
Insurance, 14, $465; Equipment, 18, $19,745; Accounts Payable, 22, $765; J. F. Outz, Capital,
31, $30,583; J. F. Outz, Drawing, 32; Professional Fees, 41; Salary Expense, 51; Rent Expense,
53; Laboratory Expense, 55; Utilities Expense, 56; Miscellaneous Expense, 59.
Instructions
1. Open a ledger of standard four-column accounts for Dr. Outz as of April 1. Enter the balances
in the appropriate balance columns and place a check mark (_#) in the posting reference column.
(Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with
the next instruction.)
2. Journalize each transaction in a two-column journal.
3. Post the journal to the ledger, extending the month-end balances to the appropriate balance
columns after each posting.
4. Prepare a trial balance as of April 30.

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