Financial Accounting Project requirement 3
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Financial Accounting
4. prepare adjusting entries using the following information in the general journal below. Show your calculations.
a. One month’s insurance has expired.
2400/ 12 = 200
$200 for march
b. The remaining inventory of repair supplies is $200.
5800 + 200 + 650 = 6650
6650 – 1000 = 5650
c. The estimated depreciation on repair equipment is $120
d. The estimated income taxes are $65.
Adjusting entries
|
SI. NO |
Date |
Account titles |
Ref. |
Debit (&) |
Credit ($) |
|
1 |
March 31 |
Expired insurance |
|
200 |
|
|
|
|
Prepaid insurance |
|
|
200 |
|
|
31 |
Repair supplies |
|
5650 |
|
|
|
|
Supplies expenses |
|
|
5650 |
|
|
31 |
Estimated depreciation |
|
120 |
|
|
|
|
Accumulated depreciation |
|
|
120 |
5. post the adjusting entries on March 31 below to the general ledger T- accounts and compute adjusted balances. Just add to balances that are already listed.
General ledger
|
Date |
Account number form charts of accounts tab |
Account title from chart accounts tab |
Debt ($) |
Credit ($) |
Debt ($) |
Credit ($) |
|
March 31 |
|
Insurance expense |
2400 |
|
2400 |
|
|
|
|
|
|
200 |
2200 |
|
|
March 31 |
|
Repair supplies |
6650 |
|
6650 |
|
|
|
|
|
|
5650 |
1000 |
|
|
March 31 |
|
Depreciation expense |
120 |
|
120 |
|
|
|
|
Accumulated depreciation |
|
120 |
|
|
6. prepare an adjusted trial balance in the space below.
Howard’s Flight Radio Management Corporation
Adjusted Trial Balance
March 31
|
Account |
Account |
Balance |
|
|
Number |
Title |
Debit |
Credit |
|
|
Cash |
18,060 |
|
|
|
Prepaid insurance |
2,200 |
|
|
|
Accounts payable |
|
5,050 |
|
|
Common stock |
|
20,000 |
|
|
Dividends |
1000 |
|
|
|
Repair revenue |
|
5,350 |
|
|
Repair supplies expense |
450 |
|
|
|
Repair equipment expense |
5,680 |
|
|
|
Electric expense |
250 |
|
|
|
Telephone expense |
340 |
|
|
|
Store rent expense |
1,900 |
|
7. prepare the financial statements of Howard’s Flight Radio Management Corporation as of March 31 in the space below. You will only be preparing the income statement, statement of retained earnings, and the balance sheet. The statement of cash flows is a required financial statement, but is not required in this project.
Howard’s Flight Radio Management Corporation
Income Statement
For the Month Ending March 31
|
Revenues: |
|
|
|
FMS repair revenue |
5,350 |
|
|
Total Revenue |
|
5,350 |
|
|
|
|
|
Expenses |
|
|
|
Store rent expense |
1900 |
|
|
Telephone expense |
340 |
|
|
Insurance expense |
200 |
|
|
Repair supplies expense |
650 |
|
|
Depreciation expense |
120 |
|
|
Income taxes expense |
0 |
|
|
Electric expense |
250 |
|
|
Total expenses |
|
3,460 |
|
|
|
|
|
Net income |
|
1,890 |
Howard’s Flight Radio Management Corporation
Statement of Retained Earnings
For the Month Ending March 31
|
Retained earnings, march 1 |
|
|
Add: Net income |
1,890 |
|
Subtotal |
|
|
Less: Dividends |
1,000 |
|
Retained earnings, March 31 |
890 |
Howard’s Flight Radio Management Corporation
Balance Sheet
March 31
|
Assets |
|
|
Cash |
20,000 |
|
Prepaid insurance |
2,200 |
|
Repair supplies |
450 |
|
Repair equipment |
5,680 |
|
Less: accumulated Depreciation |
120 |
|
Total Assets |
28,210 |
|
Liabilities and stakeholders’ liabilities: |
|
|
Accounts payable |
5,050 |
|
Income taxes payable |
2,270 |
|
Total liabilities |
|
|
|
|
|
Stakeholders’ equity: |
|
|
Common stock |
20,000 |
|
Retained earnings |
890 |
|
Total stockholder’s Equity |
20,890 |
|
|
|
|
Total liabilities & stockholders’ Equity |
28,210 |
