Actg 201 Comprehensive Project
Knopfler Corporation’s balance sheet at December 31, 2011, included the following information:
Knopfler Corporation
Balance Sheet
At December 31, 2011
Cash
$ 24,600
Accounts Payable
$25,600
Accounts Receivable
45,500
Allow. for Doubtful Accounts
(1,500)
Common Stock ($10 Par)
50,000
Supplies
4,400
PIC- in Excess of Par Common
30,000
Land
40,000
Retained Earnings
127,400
Building
142,000
Accumulated Depreciation
(22,000)
Total Assets
$233,000
Total Liabilities & Equity
$233,000
The following transactions occurred during 2012:
Knopfler performed services for $288,000 on account.
On August 1, Knopfler collected fees of $48,000 in advance for services to be performed evenly between September 1, 2012 and September 1, 2013.
Knopfler collected cash of $275,000 from customers on account.
Knopfler purchased $30,100 of supplies on account.
Knopfler paid $34,500 to suppliers on account.
Knopfler paid $192,200 for operating expenses.
On December 15, 2012, Knopfler declared the annual dividend of $1.50 per share on the outstanding common stock. The dividends will be paid on January 15, 2013.
An accounts receivable of $1,600 was written off as uncollectible.
December 31, 2012 - Adjustment data:
A count of supplies indicated that $6,900 of supplies remain unused at year end.
Calculated and recorded the revenue earned from transaction #2 above.
The allowance for doubtful accounts was estimated to be 5 percent of accounts receivable (round to the nearest dollar).
Depreciation on the building was calculated on the straight-line basis based on an estimated 20 year life and an estimated $10,000 salvage value.
Required:
Prepare the necessary journal entries for the transactions listed above (omit explanations).
Post the numbers from the journal to the ledger.
Prepare the trial balance (unadjusted) dated December 31, 2012.
Prepare the required adjusting journal entries from the adjustment data.
Post the numbers from the journal to the ledger.
Prepare the adjusted trial balance dated December 31, 2012.
Prepare Knopfler’s required income statement, statement of retained earnings, and balance sheet (all in good form) for 2012.
Prepare the necessary closing entries in the Journal.
Post the closing entries to the Ledger
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