There is a newly established SERVICE COMPANY as of Jan 01, 2015

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There is a newly established SERVICE COMPANY as of Jan 01, 2015.

You should prepare assignment by considering below items to be recorded to the Journal;

1.      On the 1^st of January, some capital from shareholders (1^st economic event) is transferred to the company.

2.      On the 1^st of January, some loan from the creditors (banks) with 12% annual interest rate is deposited to the company's bank account (2^nd economic event).

3.      During January, you will consider 18 more economic events to be registered to the Journal as directed below:

a. 3 prepaid expenses, 1 unearned revenues

b. 3 accrued expense, 1 accrued revenue

c. 1 purchasing a vehicle in the beginning of January,

d. 1 purchasing equipment in the beginning of January,

e. 1 Freight-in cost for purchasing of equipment,

f. 1 Installation cost for the equipment,

g. 1 Maintenance cost for the equipment,

h. 2 adjustment entries with the bank,

i. 1 month depreciation registration for the Vehicle,

j. 1 month depreciation registration for the equipment,

k. 1 interest registration for the loan borrowed from the bank.

 

4.      Post the above events to the Ledger

5.      At the end of January,

a.      Prepare Trial Balance

b.      Record a djusting Entries

c.      Prepare a djusted Trial Balance

6.      Prepare Income Statement

7.      Prepare Retained Earnings Statement

8.      Prepare Balance Sheet