Question

Abc Corporation was incorporated on December 1, 2019 and had following transactions during December

1 Dec Issued Capital for 5000 cash

 3 Dec Paid 1200 cash for three months rent in advance

 4 Dec Purchased a used truck for 10,000 on credit

 4 Dec Purchased Supplies of 1000 on credit

 6 Dec Paid 1800 for a one-year truck insurance policy

 7 Dec Billed a customer 4500 for work completed to date

 8 Dec Collected 800 for work completed to date

 12 Dec Paid the following expense in cash

 Advertisement 350

 Interest 100

 Telephone 75

 truck operating 425

 Wages 2500 

15 Dec Collected 2000 of the amount billed on 7 dec

 18 Dec Billed Customer 6500 for work completed to date

 19 Dec Signed a 9000 contract for work to be performed in Jan 2017

 22 Dec Paid the following Expenses

 Advertisement 200

 Interest 150

 Truck Operating 375

 Wages 2500

 27 Dec Collected advance on work to be done in January

 28 Dec Received a bill for 100 for electricity used during the month

Additional Information The following information relates t0 31 Dec , 2016 One month of the prepaid insurance has expired The December portion of the rent paid is expired A physical count indicates that 350 of supplies is still on hand The amount collected as advance is unearned Three days of wages for Dec 29 30 31 are unpaid: Unpaid amount of 1500 will be included in first wages payment in Jan The truck has an estimated useful life of 4 years Income tax expenses are 500. The amount is to be paid next year.

Required:

Prepare trasaction summary,general journal, entries to ledger account, trial balance,adjusted trial balnce, financial statemment(income statement,owners equity,balance sheet), close temporary accounts and worksheet.

Intructions: should be handwritten or word file depend on you

Answer 1

PLease find the answer to the question herein.

Please Note NO entry shall be passed for Entering into the contract on 19th Dec. Further, The entry for advance received for the same shall be passed

Hope you can see the files uploaded herein above. consisting the answer.

Further Depreciation is calculated as follows:

10000/4 Years = 2500 Per Year on straight line method. So, for one month = 2500/12 = 208