Question

Problem 1

Kat’s Cat Klinic had the following balance sheet as of December 31, 2016:

Assets:                                                                 Liabilities and Stockholders’ Equity

Cash                                        $    211,000     Accounts Payable                   $      37,000

Accounts Receivable $95,000                        Salaries Payable                             19,300

Less Allowance           (6,300)       88,700     Utilities Payable                                3,200

Prepaid Insurance                          27,000     Interest Payable                                4,100

Supplies                                          31,000     Unearned Revenue                        16,800    

Building                    $530,000                        Notes Payable                                64,000

Accum Depr – Build (205,000)     325,000     Common Stock                             238,000

Equipment                $407,000                       APIC                                             396,900

Accum Depr – Equip(119,000)    288,000     Retained Earnings                        191,400

                                                $    970,700                                                     $    970,700

                                                =========                                                    =========

The following economic events occurred during 2017:

Performed services for $ 211,000, all on account.

Paid $ 169,000 for salaries that were due. (THINK!)

Collected $ 126,000 from customers on account.

Received $ 41,000 for services to be performed.

Paid $ 8,900 due for utilities. (THINK!)

Performed services totaling $ 236,000 of which $ 91,000 was received in cash.

Purchased $ 44,000 worth of supplies and paid cash.

Paid $ 7,300 for interest due on note. (THINK!)

Wrote off uncollectible bad debt of $ 11,600. (See 2012/2030 text or page 363.)

Paid $ 167,000 for salaries.

Collected $ 234,000 on account.

Paid $ 22,000 on account.

Issued 75,000 shares of $ 1 par value common stock and received $ 310,000. (See 2012/2030 text or page 1047.)

Performed services totaling $ 284,200 of which $ 79,000 was received in cash.

Declared and paid a cash dividend of $ 85,000. (Use a dividend account.) (See page 91.)

Collected $ 191,000 on account.

The following information pertains to 2017 year-end adjusting entries:

Estimated $ 12,100 for bad debts expense.

$ 9,400 of insurance remains unexpired at year-end.

There are $ 38,200 worth of supplies on hand.

Allocated $ 29,000 for depreciation of buildings and $ 33,000 for depreciation of equipment.

Accrued the following expenses: salaries, $ 10,700; utilities, $ 2,200; interest, $ 5,800.

Earned $ 32,300 of prepaid services.

Using the information above, complete the following:

Open T-accounts and enter the beginning balances from the 2016 balance sheet.

Record 2017 transactions 1 thru 16 in general journal form.

Post transactions 1 thru 16 to the T-accounts.

Prepare a 2017 unadjusted trial balance in good form. (Balance should be 2,328,300)

Record 2017 adjusting entries a thru f in general journal form.

Post adjusting entries a thru f to the T-accounts.

Prepare a 2017 adjusted trial balance in good form. (Balance should be 2,415,800)

Prepare a 2017 year-end income statement, statement of stockholders’ equity and a balance sheet, all in good form. (Total assets should be 1,465,200)

Record closing entries in general journal form. (Use an Income Summary account.)

Post closing entries to the T-accounts.

Prepare a 2017 post-closing trial balance. (Balance should be 1,858,000)

*I POSTED THIS ONCE BEFORE, BUT ANSWERER DID NOT ANSWER BOTTOM 3*

Answer 1