Question

The following information is given for Randy Equestrian Services Inc. for the year ended December 31, 2018, The account balances (all of which had their normal balance of debit or credit) at the beginning of 2018 (January 1, 2018) were as follows nterest Payable During the year ended December 31, 2018, the following transactions occurred a. Randy eaned its revenues in a variety of ways. It rented stables to customers for $36,900 paid in cash. It rented its grounds to individual riders, groups, and show organizations for $75,240 paid in cash. Randy also provided horse grooming and training services to customers, all on credit, for 540,540, b. Straw was purchased for $13,320 cash and debited to the prepaid supplies accout c. Feed in the amount of $149,220 was purchased from suppliers on credit and debited to the prepaid supplies account. d. There remains $28,080 of accounts receivable to be collected at December 31, 2018 e. Wages payable at the beginning of 2018 were paid early in 2018, Wages were earned by employees in the amount of $201,600, of which $16,500 remained unpaid at end of 2018 f. The income tax payable at the beginning of 2018 was paid carly in 2018. g. Payments of S173,000 were made to creditors for supplies previously purchased on credit h, One year's interest at 6,5% was paid on the notes payable on July 1, 2018 i. During 2018, Jon Hoth, a principal shareholder, purchased a diamond ring for his wife, Phocbe The ring cost $17,000, and Jon used his personal credit to purchase it. j. Property taxes were paid by cheque on the land and buildings in the amount of S34,000 k. Randy parchased a truck for $34,000, paid S15,000 in cash and paid the rest of the price in common shares. I. Dividends were declared and paid by cheque in the amount of S20,200 Year End (December 31, 2018) Data The following data is available for preparation of adjusting journal entries at December 31, 2018 Supplies (feed and straw) in the amount of $48,400 remained unused at year-end Annual depreciation on the buildings is $9,000 Annual depreciation on all the equipment is $10,500 Interest for six months at 63% per year on the nose is unpaid and unrecorded at year-end. Income taxes of $29,500 were unpaid and unrecorded at year-end Required: I Post the beginning balances at January 1,2018 to T accounts. Prepare required journal entries for all transactions a to I and post the journal entries to the relevant T accounts, Add any new T accounts you need 2.Prepare all required adjusting journal entries at December 31, 2018 and post the adjusting journal entries to the T accounts. Add any new T accounts you need 3, Prepare, in proper financial statement format, a single step statement of earnings for the year ended December 31, 2018. 4 Prepare, in proper financial statement format, a statement of retained carnings for the year ended December 31, 2018. 5. Prepare, in proper financial statement format, a classified statement of financial position as at December 31, 2018.

Answer 1