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Freelance Writing

Recording Business Transactions according to US GAAP. Consider a hypothetical firm with unadjusted trial balance at December 31as shown below:

 

Unadjusted trial balance Feb 28

Cash= 20700

Accounts receivable =3000

Land =20000

Building= 40000

Furniture= 6000

Computer = 2400

Note payable = 55000

Accounts payable = 5000

Cap stock = 30000

Revenue = 4600

Electricity expense= 500

Salary expense= 2000

TOTAL

94600

94600

At December 31, the company has to record the following transactions

Revenues obtained during the las 10 months: $250,000.00 all paid in cash

All expenses of the company during the last 10 months for $58,000

The $55,000 note payable has been issued on January 1 and  bears 10% interest rate. Interests are paid every 1st of January. No repayment of the principal has been made

The building has a useful life of 30 years, an estimated salvage value of $5,000

Students are requested to:

Prepare the last entries of the year on the journal (revenues and expenses, adjusting entries)
Prepare the closing entries.
The balance sheet of the company closed at December 31.

 

Formalities:

Format: An Excel document

 

This task assesses the following learning outcomes:

Recording business transactions according to US GAAP
Assessing the Journal.
Assessing the Balance sheet.
Assessing the firm’s result.

Recording Business Transactions according to US GAAP. Consider a hypothetical firm with unadjusted trial balance at December 31as shown below:
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