Question

In: Accounting

Prepare the necessary adjusting journal entries on December 31, 2020. Also prepare an adjusted trial balance dated December 31, 2020

                                                       GoodJob Inc.

                                          Unadjusted Trial Balance

                                              December 31,2020

Account                                                                                 Debit                             Credit

Cash                                                                                       304,150

Accounts Receivable                                                            99,000

Office supplies                                                                            880

Prepaid rent.                                                                           3,960

Unexpired insurance                                                              1,650

Office equipment                                                                  79,200

Accumulated depreciation: office equipment                                                        26,400

Accounts payable                                                                                                           4,400

Notes payable (due 3/1/12)                                                                                       66,000

Interest payable                                                                                                                 660

Income taxes payable                                                                                                    9,900

Dividends payable                                                                                                          3,500

Unearned consulting fees                                                                                           24,200

Capital stock                                                                                                                  220,000

Retained earnings                                                                                                         44,000

Dividends                                                                              3,500

Consulting fees earned                                                                                               550,000

Rent expense                                                                      16,170

Insurance expense                                                               2,420

Office supplies expense                                                      4,950

Depreciation expense: office equipment                      12,100

Salaries expense                                                                363,000

Utilities expense                                                                    5,280

Interest expense                                                                    3,300

Income taxes expense                                                        49,500

Totals                                                                                   949,060                      949,8060

Instructions:

  1. Prepare the necessary adjusting journal entries on December 31, 2020. Also prepare an adjusted trial balance dated December 31, 2020 (20 points).
  2. From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2020. Also prepare the company’s balance sheet dated December 31, 2020 (20 points).

Solutions

Expert Solution

Adjusted Journal Entries
S. No. Account Tittle Debit Credit
a. Consulting Fees Earned $550,000.00
Income Sumamry $550,000.00
b. Income Summary $456,720.00
Rent Expense $16,170.00
Insurance Expense $2,420.00
Office Supplies Expense $4,950.00
Depreciation Expense $12,100.00
Salaries Expense $363,000.00
Utilities Expense $5,280.00
Interest Expense $3,300.00
Income Tax Expense $49,500.00
c. Income Summary $93,280.00
Retaiend Earning $93,280.00
d. Retaiend Earning $3,500.00
Dividend $3,500.00
Incoem Statement
Revenue
Consulting Fees Earned $550,000.00
Less: Expense
Rent Expense $16,170.00
Insurance Expense $2,420.00
Office Supplies Expense $4,950.00
Depreciation Expense $12,100.00
Salaries Expense $363,000.00
Utilities Expense $5,280.00
Interest Expense $3,300.00
Income Tax Expense $49,500.00
Total Expense $456,720.00
Net Income $93,280.00
Statemet of Retained Earning
Beginning Balance $44,000.00
Net Income $93,280.00
Dividend -$3,500.00
Ending Balance $133,780.00
Good Job Inc.
Balance Sheet
Asset
Current Asset
Cash $304,150
Account Receivable $99,000
Offcie Supplies $880
Prepaid Rent $3,960
Unexpired Insurance $1,650 $409,640
Property Plant Equipment
Offcie Equipment $79,200
Less: Accumulated Depreciation -$26,400 $52,800
Tototal Asset $462,440
Liabilities & Equity
Liabilities
Account Payable $4,400
Note Payable $66,000
Interest Payable $660
Income Tax Payable $9,900
Dividend Payable $3,500
Unearned Consulting Fees $24,200
Total Liabilitirs $108,660
Equity
Capital Stock $220,000
Retained Earning $133,780
Total Equity $353,780
Tototal Liability & Equity $462,440
Adjusted Trial Balance
Account Tittle Debit Credit
Cash $304,150
Account Receivable $99,000
Offcie Supplies $880
Prepaid Rent $3,960
Unexpired Insurance $1,650
Offcie Equipment $79,200
Accumulated Depreciation $26,400
Account Payable $4,400
Note Payable $66,000
Interest Payable $660
Income Tax Payable $9,900
Dividend Payable $3,500
Unearned Consulting Fees $24,200
Capital Stock $220,000
Retaiend Earning $133,780
Total $488,840 $488,840

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