Acc201 Survey of Accounting: P3-43 The problem continues the Haupt Consulting situation

Acc201 Survey of Accounting
P3-43
The problem continues the Haupt Consulting situation from problem 2-64 of chapter 2.
Start from the trial blance and the posted T accounts that Haupt Consulting prepared December 18 as follows:
Haupt Consulting
Trial Balance
December 18, 2010
Balance
Account Title Debit Credit
Cash 8,100
Accounts Receivable 1,700
Supplies 300
Equipment 2,000
Accumulated Depreciation - Equipment
Furniture 3,600
Accumulated Depreciation - Furniture
Accounts Payable 3,900
Salary Payable
Unearned Service Revenue
Carl Haupt, Capital 10,000
Carl Haupt, Withdrawals
Service Revenue 2,500
Rent Expense 500
Utilities Expense 200
Salary Expense
Depreciation Expense - Equipment
Depreciation Expense - Furniture
Supplies Expense
Total $16,400 $16,400

Later in December, the business completed these transactions as follows:
Dec 21 Received $900 in advance for client service to be performed evenly over the next 30 days.
Dec 21 Hired secretary to be paid $1,500 on the 20th day of each month. The secretary begins work immediately.
Dec 26 Paid $300 on account
Dec 28 Collected $600 on account
Dec 30 Owner withdrew $1,600

Required:
1. Open these additional T-accounts: Accumulated depreciation-equipment; Accumulated depreciation-furniture; Salary payable; Unearned service revenue; Depreciation expense-equipment; Depreciation expense-furniture; Supplies expense.
2. Journalize the transactions of Dec 21-30.
3. Post to the T-accounts, keying all items by date
4. Prepare a trial balance at December 31. Also set up columns for the adjustments and for the adjusted trial balance.
5. At December 31, the business gathers the following information for the adjusting entries:
a. Accrued service revenue, $400
b. Earned $300 of the service revenue collected in advance on December 21
c. Supplies on hand, $100
d. Depreciation expense-equipment, $33; furniture, $60
e. Accrued $700 expense for secretary’s salary
On your work sheet make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31. Throughout the book, to avoid rounding errors, we base adjusting entries on 30-day months and 360-day years.
6. Journalize and post the adjusted entries. In the T-accounts denote each adjusting amount as Adj and an account balance as Bal.
7. Prepare the income statement and the statement of owner’s equity of Haupt Consulting for the month ended December 31, 2010, and prepare the balance sheet at that date.
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