Example 11-AAA Company
AAA Company is service company, transactions for company on Jan, Year 2 as follows:
- Company provides service to DDD customer $9,000 on credit
- Company Purchased office supplies $150 by cash
- Company bought office equipment $10,000 by cheque and cash $8,000 from HHH Company
- Received invoice for utilities expense $500. At the end of last month, company estimated $520
- Paid advertisement $7,000 by cheque
- AAA paid interest $100 by bank ( accrued interest of $50 from previous month)
- Company provides service to CBB customer $10,000 by cash
- DDD customer paid $ $8,990 by cheque for service on credit on 4 Jan and DDD get discount allowed $10
- Owner withdrew $5,000 for personal use from bank
- Company paid salary expense for employees $20,000 by bank
- Company paid rent expense $5,000 by cash
Additional information
- Assume the office equipment has useful life 3 years.
- Interest Expense $50 for adjustment from loan $10,000
- Utilities expense are estimated $750 on Jan
- After Closing Trial Balance
| AAA Company | ||
| After Closing Trial Balance | ||
| 31 December, Year 1 | ||
| Debit | Credit | |
| Cash on hand | 21,490 | |
| Cash at bank | 34,510 | |
| Furniture (note 1) | 36,000 | |
| Car (note 2) | 20,000 | |
| Loan | 10,000 | |
| Accumulated Depreciation | 2,167 | |
| Accrued Utilities | 520 | |
| Accrued Interest | 50 | |
| Ending Equity | 99,263 | |
| Total | 112,000 | 112,000 |
Note :
- Note 1: assume depreciation expense for office furniture $1,000
- Note 2 : assume depreciation expense for car $167
You are required to:
- Prepare General Journal
- Prepare General Ledger
- Prepare Trial Balance
- Make Adjusting Entry
- Prepare Adjusted Trial Balance
- Prepare income statement
- Prepare Statement of Change in Equity
- Prepare balance sheet
- Make closing entry
- Prepare Post (After) Closing Trial Balance