Determine the adjusting entries and post them directly to the T accounts.

Determining Adjusting Entries and Tracing Their Effects to Financial Statements

Joyce Ozaki opened a small tax-preparation service. At the end of its second year of operation, Ozaki Tax Service, Inc., had the trial balance shown at the top of the next page. The following information is also available:

a. Office supplies on hand, December 31, 20×7, $227.

b. Insurance still unexpired, $120.

c. Estimated depreciation of office equipment, $770.

d. Telephone expense for December, $19; the bill was received but not recorded.

e. The services for all unearned tax fees had been performed by the end of the year.

f. Estimated federal income taxes for the year, $1,800.

Required

1. Open T accounts for the accounts in the trial balance plus the following: Income Taxes Payable; Insurance Expense; Office Supplies Expense; Depreciation Expense–Office Equipment; and Income Taxes Expense. Record the balances shown in the trial balance.

2. Determine the adjusting entries and post them directly to the T accounts.

3. Prepare an adjusted trial balance, an income statement, a statement of retained earnings, and a balance sheet.

4. User insight: Why is it not necessary to show the effects of the above transactions on the statement of cash flows?

find the cost of your paper

Write a program that reads the name of an element from the user and uses a recursive function to find the longest sequence of elements that begins with that value

Some people like to play a game that constructs a sequence of chemical elements where each element in the sequence begins with the last letter of its predecessor. For example,….

What is the correct charge to the income statement for bad debts and bad debt provisions for the years to 31 December 20X1?

Trade receivables as at 31 December 20X1 were $25,000. The bad debt provision as at 1 January 20X1 was $812. During the year to 31 December 20X1 bad debts of….

Which of the following is an adjusting event?

IAS 10 – Events after the balance sheet date, distinguishes between adjusting and non-adjusting events. Which of the following is an adjusting event? (A) One month after the year end,….