Question

1. 12-1 The Shark Corp Received $240,000 from SJ Sharkie in exchange for 5,000 shares of Common Stock.
2. 12-2 The Shark Corp Borrowed $50,000 from Wells Fargo Bank and signed a Note.
3. 12-3 The Shark Corp purchased Office Furniture for $120,000(5 year life), on account from IKEA..
4. 12-4 The Shark Corp purchased Computer Equipment for $60,000(5 year life), on account from Office Depot
5. 12-5 The Shark Corp paid $18,000 with Check#101 for Corporate Insurance for the next 12 months.(Dec-Nov)
6. 12-10 The Shark Corp paid $15,000 with Check#102 for December Rent.
7. 12-11 The Shark Corp provided a mascot Seminar for the NIKE Corp and Billed Nike $110,000 on account.
8. 12-15 The Shark Corp received the December Utility Bill from PGE in the amount of $5,000 to be paid in Jan.
9. 12-16 The Shark Corp received the December Telephone Bill from SBC for $7,000 to be paid Later.
10. 12-17 The Shark Corp received a $70,000 Check from Nike Corp on account for services previously provided.
11. 12-20 The Shark Corp paid $20,000 with check #103 to Mark’s Marketing for Professional Fees Expense.
12. 12-25 The Shark Corp paid $44,000 with Check #104 for December Salary expenses.
13. 12-27 The Shark Corp received a $25,000 Check from Buick Corp for services to be provided in January.
14. 12-28 The Shark Corp Paid $120,000 with Check#105 to IKEA Corp for the Office Furniture purchased above.
15. 12-29 The Shark Corp Paid $7,000 with Check #106 to SBC on account for the Telephone Bill.
16. 12-30 The Shark Corp Paid $12,000 with Check#107 to Mr. SJ Sharkie for Dividends to the owner.
17. 12-30 The Shark Corp paid $3,000 with check #108 to WF Bank on the note, $1,000 was for Interest Expense.
18. 12-31 The Shark Corp recorded one Month of Insurance expense from the Prepaid Insurance account.
19. 12-31 The Shark Corp recorded one Month of Depreciation Expense on the Furniture and the Computer Equip.
20. 12-31 The Shark Corp recorded Income Tax Payable and Income Tax Expense for December, which is 40% of Net Income.(Taxes to be discussed in class)

Make an adjusted trial balance and consolidated balance sheet.

Answer 1

The Shark Corp
Adjusted Trial Balance
December 31, XXXX
Account			Debit ($)	Credit ($)
Cash			76,000	-
Common Stock			-	240,000
Notes Payable			-	48,000
Accounts Payable			-	60,000
Office Furniture			120,000	-
Computer Equipment			60,000	-
Accumulated Depreciation on Office Furniture		-	2,000
Accumulated Depreciation on Computer Equipment			1,000
Prepaid Insurance			16,500	-
Accounts Receivable			110,000	-
Unearned Income			-	25,000
Accrued Expense			-	5,000
Revenues			-	110,000
Office Rent expense			15,000	-
Utilities Expense			5,000	-
Telephone Expense			7,000	-
Professional Fees Expense			20,000	-
Salary expenses			44,000	-
Interest Expense			1,000	-
Insurance Expense			1,500	-
Depreciation Expense			3,000	-
Dividends			12,000	-
Income tax Expense			5,400	-
Income tax Payable			-	5,400
Totals			496,400	496,400

The Shark Corp
Balance Sheet
December 31, XXXX
Assets
Current Assets
	Cash					76,000
	Accounts Receivable			110,000
	Prepaid Insurance				16,500
	Total Current Assets			202,500
Long Term Assets
	Office Furniture			120,000
	Less : Accumulated Depreciation	(2,000)	118,000
	Computer Equipment		60,000
	Less : Accumulated Depreciation	(1,000)	59,000
	Total Long Term Assets			177,000
	Total Assets				379,500
Liabilities
Current Liabilities
	Accounts Payable				60,000
	Income tax Payable			5,400
	Unearned Income				25,000
	Accrued Expense				5,000
	Total Current Liabilities			95,400
Long Term Liabilities
	Notes Payable				48,000
	Total Long Term Liabilities			48,000
Owner's Equity
	Common Stock				240,000
	Retained Earnings				(3,900)
	Total Owner's Equity			236,100
	Total Liabilities & Owner's Equity		379,500