Hey I need help with C and D mostly. Lisa started her own consulting firm, Lisa Consulting Co on Dec 1, 2019. During December, the following transactions were completed.
Dec 1 Shareholders invested $16,000 cash in the business in exchange for ordinary shares.
4 Paid $2,880 cash on one-year insurance policy effective Dec 1.
5 Purchased supplies for $1,500 on account.
6 Purchased equipment for $12,000, paying $7,000 cash down payment and issued a 3 month 6% note payable for the remaining balance.
10 Received $2,600 cash from a customer, in advance for the consulting services to be performed later.
12 Billed other customers $4,780 for construction services performed, receiving $1,000 cash with the rest on account.
15 Paid $3,000 for employee salaries.
21 Collected from customers billed on Dec 12 in full.
24 Billed customers $4,000 for construction services performed.
27 Paid $1,000 for Dec’s rent expense.
29 Paid the amount owed for supplies purchased on 5 Dec.
31 Declared and paid dividend of $400.
The chart of accounts for Lisa Consulting Co contains the following accounts: Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Notes Payable Unearned Service Revenue Salaries Payable Income Tax Payable Interest Payable Accumulated Depreciation - Equipment Share Capital-Ordinary Service Revenue Rent Expense Salaries Expense Supplies Expense Depreciation Expense Insurance Expense Utilities Expense Interest Expense Income Tax Expense Dividends Instructions
(a) Journalize the December transactions.
(b) Prepare a trial balance at December 31.
(c) Refer to the following information, journalize adjusting entries for the month of December 2019 and prepare the adjusted trial balance at December 31:
1. $1,000 of supplies are counted as at December 31.
2. Utilities expense incurred but not paid on Dec 31, 2019, $200.
3. The insurance policy is for 1 year.
4. $1,000 of the balance in the Unearned Service Revenue account remains unearned at the end of the month.
5. Salaries for Dec 2019 not yet paid to employees totaled $400.
6. The equipment has a 10-year life with no residual value.
7. Invoices representing $1,100 of services performed during the month have not been recorded as of Dec 31.
8. Interest for the 3 month notes payable is not yet recorded.
9. The company’s CPA estimates that income taxes expense for December is $900.
(d) Prepare the adjusted trial balance at December 31, 2019.