Silver Lining, Inc

Subject:BusinessPrice: Bought3

Share With

Silver Lining, Inc., provides investment advisory services. The company adjusts its accounts monthly, but performs closing entries annually on December 31. The firm's unadjusted trial balance dated December 31, current year, appears as follows. SILVER LINING, INC. Unadjusted Trial Balance December 31, Current Year Credits Debits $ 51,402 2,400 246 1,440 324 64,800 Cash Accounts receivable Office supplies Prepaid rent Unexpired insurance Office equipment Accumulated depreciation: office equipment Accounts payable Interest payable Income taxes payable Notes payable Unearned consulting services revenue Capital stock Retained earnings Dividends Consulting services revenue office supplies expense Depreciation expense: office equipment Rent expense Insurance expense Salaries expense Interest expense Income taxes expense Totals $ 42,300 1,680 432 2,100 10,800 4,200 36,000 9,600 1,200 72,000 726 9,900 4,230 1,212 32,520 432 8,280 $179, 112 $179, 112 Other Data 1. Accrued but unrecorded and uncollected consulting services revenue totals $1,800 at December 31, current year. 2. The company determined that $3,000 of previously unearned consulting services revenue had been earned at December 31, current year. 3. Office supplies on hand at December 31 total $132. 4. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years (72 months). 5. The company prepaid its six-month rent agreement on October 1, current year. 6. The company prepaid its 12-month insurance policy on March 1, current year. 7. Accrued but unpaid salaries total $2,280 at December 31, current year. 8. On June 1, current year, the company borrowed $10,800 by signing a 9-month, 8 percent note payable. The entire amount, plus interest, is due on March 1, next year. 9. The company's CPA estimates that income taxes expense for the entire year is $9,000. The unpaid portion of this amount is due early in the next year. Required: a-1. Prepare the necessary adjusting journal entries on December 31, current year. a-2. Prepare an adjusted trial balance dated December 31, current year. b-1. From the adjusted trial balance prepared in part a-2, prepare an income statement for the year ended December 31, current year. b-2. From the adjusted trial balance prepared in part a-2, prepare the statement of retained earnings for the year ended December 31, current year. b-3. From the adjusted trial balance prepared in part a-2, prepare the company's balance sheet dated December 31, current year. c. Prepare the necessary year-end closing entries. d. Prepare an after-closing trial balance. e. Compute the company's average monthly insurance expense for January and February of current year. f. Compute the company's average monthly rent expense for January through September of current year. g. If the company purchased all of its office equipment when it first incorporated, for how long has it been in business as of December 31, current year? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req B3 Reqc ReqD ReqE ReqF Req G Prepare the necessary adjusting journal entries on December 31, current year. (If no entry is required for a transaction/event, s journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 8 9 > Record the revenue accrued at the end of December. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record entry Clear entry View general journal Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Reg D ReqE Reg F Reg G Prepare an adjusted trial balance dated December 31, current year. SILVER LINING, INC. Adjusted Trial Balance December 31, Current Year Debits Credits Totals $ 0 $ Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B1 Req B2 Req B3 Reqc ReqD ReqE Reg F Reg G From the adjusted trial balance prepared in part a-2, prepare an income statement for the year ended December 31, current year. SILVER LINING, INC. Income Statement For the Year Ended December 31, Current Year Revenues: Expenses: 0 $ $ $ Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Req D ReqE ReqF Req G From the adjusted trial balance prepared in part a-2, prepare the statement of retained earnings for the year ended December 31, current year. SILVER LINING, INC. Statement of Retained Earnings For the Year Ended December 31, Current Year Retained earnings (1/1/Current Year) Retained earnings (12/31/Current Year) 0 Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Reg D Req E ReqF Req G From the adjusted trial balance prepared in part a-2, prepare the company's balance sheet dated December 31, current year. (Amounts to be deducted should be indicated by a minus sign.) SILVER LINING, INC. Balance Sheet December 31, Current Year Assets Office equipment 0 0 Total assets EA $ Liabilities & Stockholders' equity Liabilities $ 0 Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Reg D Reg E Reg F Reg G Prepare the necessary year-end closing entries. (If no entry is required for a transaction/event, select "No journal entry require first account field.) View transaction list Journal entry worksheet 1 2 3 4 Σ Record the entry to close the revenue account. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record entry Clear entry View general journal Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Reg D Reg E Reg F Req G Prepare an after-closing trial balance. SILVER LINING, INC. After-Closing Trial Balance December 31, Current Year Debits Credits Totals $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Reg D Req E Reg F ReqG Compute the company's average monthly insurance expense for January and February of current year. Monthly insurance expense Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req B3 Reqc ReqD Req E ReqF Req G Compute the company's average monthly rent expense for January through September of current year. Monthly rent expense Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req B3 Reqc Req D Req E Reg F Req G If the company purchased all of its office equipment when it first incorporated, for how long has it been in business as of December 31, current year? Total months company has been in operation