Example 5-XYZ Company

On Oct, 2021 XYZ Company transactions for the month are:

1. A add more capital into bank $40,000
2. Repair and Maintenance of Photography Equipment $110
3. Company performed service to client A $12,000 in cash, but client A gets trade discount 3% (regular customer)
4. Received invoice $950 for utilities expense, but at end of Sep company estimated this bill $1,000 (balance brought forward in after closing trial balance)
5. Purchase more office equipment cash $9,000 and paid $100 cash for shipping office equipment.
6. Service are performed for $14,000 in cash .
7. Service is performed to client B $10,000 on credit
8. Paid advertisement by bank $6,500
9. Paid interest on note payable 1% ( principal $5,000 brought forward in after closing trial balance)
10. Received Cash from Customer B $10,000 in bank purchased on credit 20 Oct.
11. Salary and wage for cost of service $2,000
12. Paid office rental $1,000
13. Paid salary expense $3,000
14. Materials for cost of service $ 13,000

Additional information

• Assume office equipment above has useful life 3 years.
• Utilities expense are estimated $2,000 on Oct (Utilities included cost of service $500)
• After Closing Trial Balance

 The following notes :

Note 1: assume depreciation $200 as cost of service

Note 2 : insurance expense $100 for Oct.

Note 3 : office supply used during Oct

Note 4: assume depreciation expense $100 for Oct

Note 5: earned during Oct.

You are required to:

1. Prepare General Journal
2. Prepare General Ledger
3. Prepare Trial Balance
4. Make Adjusting Entry
5. Prepare Adjusted Trial Balance
6. Prepare income statement
7. Prepare Statement of Change in Equity
8. Prepare balance sheet
9. Make closing entry
10. Prepare Post (After) Closing Trial Balance