Example 6-XYZ Company
XYZ Company on Nov, 2021
- Mr. A , owner, bought computer $500 for personal use
- Service are performed to client B $15,000 by cash and $5,000 on credit
- Received invoice $18,000 for utilities expense. At end of Oct, company estimated this bill $2,000
- Purchase office supplies cash paid $2,100
- Received cash from client B $5,000 and allowed discount $20 for bill on Nov, 9
- Company performed service to client A $9,800 in cash
- Paid interest on note payable 1% ( $5,000 as principal)
- Salary and wage for cost of service $2,000
- Paid office rental $1,000
- Paid salary expense $3,000
- Materials for cost of service 15,000
Additional information
- Assume office supplied used $900 during Nov
- Insurance expense per month is $100
- Utilities expense are estimated $2,000 on Nov (Utilities included cost of service$700)
- After Closing Trial Balance
| After Closing Trial Balance | ||
| 30 Oct, 2021 | ||
| Debit | Credit | |
| Cash | 72,330 | |
| Cash at bank | 43,500 | |
| Photography Equipment (note 1) | 20,000 | |
| Prepaid Insurance | 2,200 | |
| Account Receivable | 10,000 | |
| Office Supply | 300 | |
| Office Equipment (note 2) | 19,100 | |
| Accumulated Depreciation | 1,250 | |
| Account Payable | 1,100 | |
| Note Payable | 5,000 | |
| Accrued Utilities | 2,000 | |
| Ending Equity | 158,080 | |
| Total | 167,430 | 167,430 |
The following note:
- Note 1 : assume Photography Equipment above has useful life 5 years, Depreciation Expense included cost of service
- Note 2: Assume office equipment above has useful life 3 years.
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