Question

Answer as many questions as possible, 4 photos attached, including the beginning balances

Directions: The assignment encompasses two files: Directions and Transactions (this Word document) and Forms (a separate Excel workbook). Your solution should be worked in Excel and the completed Excel workbook submitted for grading. You should use Excel formula where appropriate and cell references to carry forward values and numbers between worksheets within the workbook. Simply typing values in Excel will result in a reduced score, even if the correct solution is provided. You should use formula wherever possible. 1 Analyze the narrative to prepare and record the transactions for December to the General Jounal. 2. Pos"าย jurnal entries to ledger accounts using T-accounts (Don't forget the opening balances from the information given on the post-closing trial balance on Nov. 30th) 3. Prepare Income Statement and the Retained Eamings Statement for the month ended December 31, 2018 and Balance Sheet as of December 31, 2018 in good forms. Use the multi-step format for the Income Statement. Close the temporary accounts, posting any net income or loss to retained earnings 4.

Answer 1

Sung Co.
Journal Entery
Date	Particulars	Debit in $	Credit in $
1.12.2018	Loss by Earthquake a/c             Dr.	5000
	Accum. Depre - Equip a/c         Dr.	5000
	To Equipment		10000
	(Loss of Equipment recorded) 10000 - 5000 = 5000
1.12.2018	Note Receivable a/c             Dr.	30000
	To Cash		30000
	(Lent cash to another company)
1.12.2018	Equipment a/c                        Dr.	12000
	To Common Stock		3000
	To Paid in Capital in excess of par		9000
	(Equipment purchased with common stock)
3.12.2018	Accounts Payable a/c                     Dr.	6000
	To Cash		6000
	(Accounts Payable paid off)
4.12.2018	Cash a/c                                       Dr.	13000
	To Land		10500
	To Gain on sale of Land		2500
	(Land sold for gain)
10.12.2018	Cash a/c                                       Dr.	16000
	To Accounts Receivable		16000
	(Cash received from debtors)
13.12.2018	Allowance for doubtful accounts Dr.	1500
	To Accounts Receivable		1500
	(Uncollectibles written off)
15.12.2018	Salaries Expense a/c               Dr.	20000
	To Cash		20000
	(Salary paid in cash)
16.12.2018	Cash a/c                                       Dr.	15000
	To Preferred share Capital		15000
	(Preferred share capital issued for cash)
17.12.2018	AFS Securities a/c                 Dr.	10000
	To Cash		10000
	(Securities purchased for cash)
20.12.2018	Sales Revenue a/c                 Dr.	2000
	To Accounts Receivable		2000
	(Error correction )
29.12.2018	Cash a/c                                       Dr.	40000
	To Service Revenue		40000
	(Services provided for cash)
30.12.2018	Accoounts Receivable a/c         Dr.	30000
	To Service Revenue		30000
	(Service provided on account)
31.12.2018	Dividends - preferred a/c          Dr.	1500
	Dividends - common a/c          Dr.	3500
	To Cash		5000
	(Dividend declared and paid)
31.12.2018	Dividends - common a/c          Dr.	100000
	To Dividend Payable		100000
	(Dividend Declared)

Adjusting Enteries
Date	Particulars	Debit in $	Credit in $
31.12.2018	Salaries Expense a/c               Dr.	10500
	To Salary Payable		10500
	(Salary Expense accrued)
31.12.2018	Utility Expense a/c                 Dr.	6000
	To Accounts Payable		6000
	(Utility Expense accrued)
31.12.2018	Supplies Expense a/c           Dr.	6000
	To Supplies		6000
	(Supplies Expensed)
31.12.2018	Bad Debts a/c                            Dr.	2025
	To Allowance for Doubtful accounts		2025
	(Bad debts estimated)
	20000 - 16000 -1500 - 2000 + 30000 = 30500 x 5% = 1525 + 500 = 2025
	Allowance for doubtful accounts = 1000 -1500 = -500
31.12.2018	Depreciation Expense a/c          Dr.	200
	To Accum. Depre - Equip		200
	(To record depreciation on equipment)

Work Sheet
For the month ending 31.12.2018
	Unadjusted		Adjustment		Adjusted
Particulars	Debit in $	Credit in $	Debit in $	Credit in $	Debit in $	Credit in $
Cash	55500				55500
Accounts Receivable	30500				30500
Allowance fro Doubtful accounts		-500		2025		1525
Note Receivable	30000				30000
Supplies	9000			6000	3000
Equipment	12000				12000
Accum. Depre - Equip		0		200		200
Land	0				0
AFS Securities	10000				10000
Accounts Payable		2000		6000		8000
Salaries Payable		10000		10500		20500
Dividend Payable		100000				100000
Preferred share Capital		15000				15000
Common Stock		53000				53000
Paid in Capital in excess of par		9000				9000
Retained Earnings		18000				18000
Dividends - preferred	1500				1500
Dividends - common	103500				103500
Sales
Service Revenue	2000	70000				68000
Loss by Earthquake	5000				5000
Gain on sale of Land		2500				2500
Salaries Expense	20000		10500		30500
Utility Expense			6000		6000
Supplies Expense			6000		6000
Bad Debts			2025		2025
Depreciation Expense			200		200
Totals	279000	279000	24725	24725	295725	295725
		0				0

Statement of Income
For the month ending 31.12.2018
Service Revenue		68000
Gain on sale of Land		2500
Total Revenue		70500
Loss by Earthquake	5000
Salaries Expense	30500
Utility Expense	6000
Supplies Expense	6000
Bad Debts	2025
Depreciation Expense	200	49725
Net Income		20775