Key each transaction by date. Explanations are not required. 11 marks: 1 marks per correct journal entry including date, debit & credit amounts. 2. Post the transactions to the T-accounts, using transaction dates as posting references. Label the ending balance of each account Bal. 11 marks: 1 mark for each correct balance. 3. Prepare the trial balance of New Pane Windows, at May 31, 2014. 16 marks: 1 mark for each correct statement title, 1 mark for each correct account with correct balance in correct order, 1 mark for correct total Debits, 1 mark for correct total credits.
The manager asks you how much in total resources the business has to work with, how much it owes, and whether May 2014 was profitable (and by how much). Calculate the amounts needed to answer her questions. 3 marks, 1 mark for correct total resources, 1 mark for correct amount owing, 1 mark for correct profit. QUESTION 2 (10 – 20 minutes) a) Details of Prepaid Insurance are shown in the account: Prepaid Insurance Jan-OLL Bal. 400. 00 Mar-ii 3,600. 00 Galloway prepays insurance on March 31 each year. At December 31, $900 is still prepaid.
B) Galloway pays employees each Friday.
The amount of the weekly payroll is $6,000 for a five-day work week. The current accounting period ends on Wednesday. C) Galloway has a note receivable. During the current year, the company has earned accrued interest revenue of $500 that it will receive next year. D) The beginning balance of Supplies was $2,600. During the year, Galloway purchased supplies costing $6,1 00, and at December the cost of supplies on hand is $2,100. E) Galloway is providing financial services for Manitoba Investments Inc. , and the owner of Manitoba paid Galloway $12,000 for its annual service fee. Galloway recorded this amount as Unearned Service Revenue.
Galloway estimates that it has earned one-third of the total fee during the current year. F) Depreciation for the current year includes Office Furniture, $1 5000, and Equipment, $2,700. Make a compound entry Required 1 . Journalize the adjusting entry needed on December 31 , 2014, the end of the current accounting period, for each of the previous independent cases affecting Galloway Corp.. Include an explanation for each entry. 20 marks: 1 mark per correct journal entry (including date, accounts, debit & credit entries), 1 mark for each appropriate description, 8 potential marks for showing calculations and that they are correct.
Cite this Unearned Service Revenue
Unearned Service Revenue. (2018, May 22). Retrieved from https://graduateway.com/assignment-133/