BAT4M Unit 1 Activity 8 Assignment #1
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BAT4M
Unit 1 Activity 8
Assignment #1 – Teleki Consulting
Kristian Teleki operates a consulting service for businesses wanting to open stores in new locations. The business's general ledger had the following balances for the fiscal year ended April 30, 2015.
Debit Credit
Bank
Accounts Receivable
Allowance for Doubtful Acc.
Prepaid Insurance
Prepaid Copier Rental
Supplies
Land
Building
Accumulated Amortization-Building
Office Furniture
Accumulated Amortization -Office Furniture Equipment
Accumulated Amortization -Equipment Line of Credit
Accounts Payable
Loan Payable
Mortgage Payable
K. Teleki, Capital
K. Teleki, Drawings Consulting Fees Business Taxes Utilities
Office Expense
Copier Rental Expense
Salaries
22,720
13,200
510
5,150
720
3,670
15,000
85,000
8,000
26,700
10,000
20,000
14,200
10,500
9,200
15,700
82,000
17,520
24,000
75,900
1,800
1,470
6,700
960
16,440
243,530 243,530
Additional information:
1) Prepaid insurance is a one year policy purchased on November 1, 2014.
2) Supplies were counted April 30. The cost value of the inventory was $360.
3) The building was purchased May 1, 2010. Its estimated useful life is 40 years and salvage value is $5000. Teleki uses straight-line amortization for the building.
4) The office furniture was purchased May 1, 2010. Its estimated useful life is 10 years and salvage value is $1700. Teleki uses straight-line amortization for the furniture.
5) The equipment is being amortized using declining balance method and a 30% rate.
6) The copier is rented from a company which requires six months rent in advance. The $700 rent was paid on March 1.
7) Uncollectible accounts are estimated at 5% of accounts receivable.
REQUIRED:
Prepare the worksheet.
Record the adjusting entries and closing entries in the General Journal.
2023-04-10
Teleki Consulting