Question

1. Prepare Journal Entries to record each of the following transactions for Echo Systems. Post the entries to the accounts in the ledger.

Dec 3. Paid $2,100 to the lakeshore Mall for the company's share of mall adverstising

Dec 3 Paid $1,200 to repair the company's computer

Dec 4. Received $7,500 from Alamo Engineering Co. for the recivable from the prior month

Dec 10. Paid Carly Smith for six days of work at rate $200 per day

Dec 14. Notified by Alamo Engineering co. that Echo's bid of 12,000 on a proposed project was accepted. Alamo paid an advance of $3,000

Dec 17. Purchased $2,310 of compute supplies on credit from Abbott Office Products

Dec 18. Sent a reminder to Fostek Co. to pay the fee for services originally recorded on November 8

Dec 20. Completed a project for Elite Corporation and received $11,250 cash

Dec24-28. Took the week off for holidays

Dec 31. Received $5,700 from Fostek Co. on its receivable

Dec 31. Reimbursed Mary Graham's business automobile expenses of 600 kilometers at $1.00 per kilometer

Dec 31. Graham withdrew $3,600 cash from business.

2. Prepare adjusting entries to record the following additional information collected on December 31, 2107. Post the entries in the ledger.

a. The December 31 inventory of computer supplies was $1,440

b. Three months have passed since the annual insurance premium was paid

c. As of the end of the year, Carly Smith has ot been paid for fpur days of work at the rate of $200 per day

d. The computer is expected to have a four year life wiht no residual value

e. the office equipmen is expected to have three-year life with no residual value

3. Prepare and adjusted trial balance as of December 31, 2017

4. Preapre an income statement and statement of changes in equity for the three months ended December 31, 2017

5. Prepare a balance sheet as of December 31, 2017

Answer 1

Date	Account Heading			Debit	Credit
Dec.3	Advertising expenses			$2,100
	Cash				$2,100
Dec.3	Repair Expenses			$1,200
	Cash				$1,200
Dec.4	Cash			$7,500
	Accounts Receivable				$7,500
Dec.10	Salaries expense			$1,200
	Cash				$1,200
Dec.14	Cash			$3,000
	Unearned Income				$3,000
Dec.17	Computer Supplies			$2,310
	Accounts Payable				$2,310
Dec.20	Cash			$11,250
	Fees Earned				$11,250
Dec.31	Cash			$5,700
	Accounts Receivable				$5,700
Dec.31	Travel expenses			$600
	Cash				$600
Dec.31	Graham. drawings			$3,600
	Cash				$3,600
		Cash
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.3	Advertising Expenses	$2,100	Dec.4	Accounts Receivable	$7,500
Dec.3	Repair Expenses	$1,200	Dec.14	Unearned Income	$3,000
Dec.10	Salaries expense	$1,200	Dec.20	Fees Earned	$11,250
Dec.31	Travel expenses	$600	Dec.31	Accounts Receivable	$5,700
Dec.31	Graham. drawings	$3,600
Dec.31	Balance C/d	$18,750
		$27,450			$27,450
		Accounts Receivable
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.4	Cash	$7,500	Dec.31	Balance C/d	$13,200
Dec.31	Cash	$5,700
		$13,200			$13,200
		Computer Supplies
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.31	Balance C/d	$2,310	Dec.17	Accounts Payable	$2,310
		$2,310			$2,310
		Unearned Income
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.14	Cash	$3,000	Dec.31	Balance C/d	$3,000
		$3,000			$3,000
		Accounts Payable
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.17	Computer Supplies	$2,310	Dec.31	Balance C/d	$2,310
		$2,310			$2,310
		Repair Expenses
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.31	Balance C/d	$1,200	Dec.3	Cash	$1,200
		$1,200			$1,200
		Advertising expenses
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.31	Balance C/d	$2,100	Dec.3	Cash	$2,100
		$2,100			$2,100
		Salaries expense
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.31	Balance C/d	$1,200	Dec.10	Cash	$1,200
		$1,200			$1,200
		Fees Earned
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.20	Cash	$11,250	Dec.31	Balance C/d	$11,250
		$11,250			$11,250
		Travel expenses
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.31	Balance C/d	$600	Dec.31	Cash	$600
		$600			$600
		Graham. drawings
Date	Account Heading	Amount	Date	Account Heading	Amount
Dec.31	Balance C/d	$3,600	Dec.31	Cash	$3,600
		$3,600			$3,600
Adjusting Entries
Dec.31	Supplies expense			870
	Computer Supplies				870
Dec.31	Salaries expense			800
	Salaries payable				800

Note: Details of Insurance, Computer and office equioment is not given, thus adjusting entry for thise cannot be prepared.