Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:
1. Smith invested $25,000 cash in the business.
2. Smith contributed $100,000 of equipment to the business.
3. The company paid $2,000 cash to rent office space for the month.
4. The company received $16,000 cash for repair services provided during March.
5. The company paid $6,200 for salaries for the month.
6. The company provided $3,000 of services to customers on account.
7. The company paid cash of $500 for monthly utilities.
8. The company received $3,100 cash in advance of providing repair services to a customer.
9. Smith withdrew $5,000 for his personal use from the company

QUESTION ONE

You have been provided with the end of year, unadjusted trial balance for Tina’s Managerial Advice business and the balance day adjustments to be implemented. Tina commenced business on 1^st July 2018.

Required:

1.         Provide the General Journal entries for the:                               

i)         Balance day adjustments on the 31^st October 2018;

ii)        Reversing entries where required on 1^st November 2018.

(9 Marks)

            2.         Provide an Income Statement for the period ending 31^st October 2018.                                                                                                                                

3.         Provide a fully classified Balance Sheet showing.                     

4.         Explain the role of the Prepaid Contents Insurance and the Unearned Advice Commissions Revenue accounts in this business.        (2 Marks)

TINA’S MANAGERIAL ADVICE SERVICE

UNADJUSTED TRIAL BALANCE AS AT 31^st OCTOBER 2018

ACCOUNT                                                                           DEBIT $     CREDIT $

Cash at bank                                                                         25,440

Accounts Receivable                                                           91,000

Allowance for Doubtful Debts                                                                    2,000

Office Supplies Inventory                                                        300

Prepaid Contents Insurance                                               4,800

Prepaid Rent of offices                                                        12,000

Photocopier (Purchased 1^st July 2017)                              60,000

Accounts Payable                                                                                        32,000

Unearned Advice Services Revenue                                                          3,340

VAT Collected (20%)                                                                                   22,068

VAT Paid (20%)                                                                   2,287

Loan from WES Bank Ltd (due 30^th June 2025)                                      80,000

Capital – Tina Tobin                                                                                   36,219

Drawings – Tina Tobin                                                       10,000

Advice Service Revenue                                                                            134,000

Electricity – Office                                                                  3,100

Discount Expense                                                                      300           

Advice staff bonus                                                                  6,800           

Advice staff wages                                                              78,200

Office Staff wages                                                                15,400

TOTAL                                                                                $309,627          $309,627

QUESTION ONE CONTINUED

Additional Information

• The 12-month Content Insurance policy was paid on 1^st July 2018.

• An Accounts Receivable of $1,000 is uncollectible and is to be written off. The policy is to have the Allowance for Doubtful Debts equal to 1% of net Advice Service Revenue.

• The Photocopier is to be depreciated using a unit method; it is anticipated that the photocopier will be kept till it has produced 2,000,000 copies and then be traded in for $10,000. As at 30^th October 2018 it had produced 80,000 copies.

• $1,340 of the Unearned Advice Services Revenue had been earned, but not recorded on 29^th October 2018.

• Advice Staff Wages amounting to $2,600 had been incurred but not yet paid as at 31^st October 2018.

• Office Supplies on hand as at 31^st October were valued at $170.

• $4000 of the Prepaid Rent of Showroom figure relates to the month of November 2018.

company A was 45%, whereas company B had 40% of the market. Other competitors accounted for the remaining 15%.To determine whether these market shares changed after the advertising campaigns, a marketing analyst solicited the preferences of a random sample of 200 customers of fabric softener. Of the 200 customers, 102 indicated a preference for company A's product, 82 preferred company B's fabric softener, and the remaining 16 preferred the products of one of the competitors. Can the analyst infer at the 5% significance level that customer preferences have changed from their levels before the advertising campaigns were launched?

Discuss whether or not each of the following activities is a data mining task. Provide your reasons as well in detail. Fill in your answers in the space provided below.

(a) Dividing the customers of a company according to their gender.

(b) Dividing the customers of a company according to their profitability.

(

c) Computing the total sales of a company.

(d) Sorting a student database based on student identification numbers.

(e) Predicting the outcomes of tossing a (fair) pair of dice.

(f) Predicting the future stock price of a company using historical records.

(g) Monitoring the heart rate of a patient for abnormalities.

(h) Monitoring seismic waves for earthquake activities.

The Timmons Corporation, a publicly accountable entity, exchanged an office building for a strip

mall with an unrelated organization. Data on the two properties are as follows:

Office Building Strip Mall

Original Cost $1,600,000 $1,300,000

Accumulated depreciation 1,100,000 750,000

Fair value 900,000 850,000

Required –

a) Prepare the journal entry to record the exchange on the books of Timmons on the

assumption that the transaction has commercial substance.

b) Prepare the journal entry to record the exchange on the books of Timmons on the

assumption that the transaction does not have commercial substance.

c) What would the difference be if Timmons was a private company subject to ASPE?

Discuss only… do not prepare journal entries for this part.

Tim opened the Emporium on March 1, 2017. During March, the following transaction were completed:

March 1   Issued 10,000 shares of common stock for $25,000 cash
March 1    Purchased used servers for $10,000, paying $6,000 cash and the balance on account
March 3    Purchased office supplies for $1,500 on account
March 5    Paid $2,400 cash on 1-year insurance policy effective March 1
March 14   Billed customers $4,200 for data analysis services
March 18   Paid $1,500 cash on amount owed on servers and $500 on amount owed on office supplies
March 20   Paid $2,750 cash for employee salaries
March 21   Collected $1,400 cash from customers billed on March 14
March 28   Billed customers $6,200 for data analysis services
March 31   Paid $350 for server maintenance which did not extend the life or function of the servers
March 31   Declared and paid $900 cash dividend

Required:
     1) Journalize the March transactions
     2) Post to the ledger accounts
     3) Prepare a trial balance at March 31
     4) Journalize the following adjustments
               a. earned but unbilled and uncollected revenue at March 31 was $800
               b. depreciation on equipment for the month was $650
               c. one-twelfth of the insurance policy expired
               d. an inventory count shows $280 of office supplies on hand at March 31
               e. Incurred employee slararies but unpaid were $1,060
     I HAVE COMPLETED THIS MUCH-------------------(answers are below) -----Please help with the remaining questions 5,6,7,8 and 9----------

      5) Posting adjusting entries to the general ledger
      6) Prepare an adjusted trial balance
      7) Prepare the income statement and a retained earnings statement for March and a classified balance sheet at 3/31
      8) Journalize and post closing entries and complete the closing process
      9) Prepare a post closing trial balance at 3/31

On January 1, 2021, Red Flash Photography had the following balances: Cash, $31,000; Supplies, $9,900; Land, $79,000; Deferred Revenue, $6,900; Common Stock $69,000; and Retained Earnings, $44,000. During 2021, the company had the following transactions:

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,900 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,900 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed

Requirement

General Journal

General Ledger

Trial Balance

Income Statement

Statement of SE

Balance Sheet

1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

2. Record the adjusting entries in the 'General Journal' tab.

3. Review the adjusted 'Trial Balance' as of December 31, 2021.

4. Prepare an income statement for the year ended December 31, 2021, in the 'Income Statement' tab.

5. Prepare the statement of Stockholder's Equity for the year ended December 31, 2021, in the 'Income Statement' tab.

6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab.

7. Record the closing entries in the 'General Journal' tab.