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b.
540
,
000$
40,000$
Consultin
g
fees earned
Ex
p
enses:
PROBLEM 5.5B
NEXT JOB, INC. (continued)
Revenues:
NEXT JOB, INC.
For the Year Ended December 31, 201
5
Income Statement
Retained earnings (1/1/15)
For the Year Ended December 31, 2015
NEXT JOB, INC.
Statement of Retained Earnings
b. (cont'd)
Asset
s
$ 276
,
500
115
,
000
300
2
,
400
Pre
p
aid rent
PROBLEM 5.5B
NEXT JOB, INC. (continued)
Accounts receivabl
e
Office su
pp
lies
NEXT JOB, INC.
December 31, 201
5
Balance Shee
t
Cash
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
c.
Dec. 31 540
,
000
Income Summar
y
540
,
000
Consultin
g
Services Revenu
e
To close A
g
enc
y
Fees Earned.
PROBLEM 5.5B
NEXT JOB, INC.
December 31, 201
5
(1)
NEXT JOB, INC. (continued)
General Journal
d.
276
,
500$ 115
,
000 300
NEXT JOB, INC.
December 31, 201
5
After-Closing Trial Balanc
e
Office su
pp
lies
Cash
Accounts receivabl
e
PROBLEM 5.5B
NEXT JOB, INC. (continued)
f.
15
,
900
$
8
,
400
(
at
$
1
,
200/mo.
)
PROBLEM 5.5B
Less: Total rent ex
p
ense June throu
g
h December
NEXT JOB, INC. (concluded)
Rent ex
p
ense incurred in 2015
TOUCHTONE TALENT AGENC
Y
General Journal
(1)
PROBLEM 5.6B
TOUCHTONE TALENT AGENC
Y
70 Minutes, Strong
December 31, 201
5
To record income taxes expense accrued in December.
a.
1.
2.
7.
8.
9.
The company’s adjusted trial balance dated December 31, 2015, appears on the following page.
$3,900 total expense - $3,200 (per trial balance) = $700 accrued in December.
$6,000 (note payable per trial balance) x 9% x 1/12 = $45 int. expense per mo.
$750 initial prepayment/6 mo. = $125 ins. expense incurred in December.
PROBLEM 5.6B
TOUCHTONE TALENT AGENCY (continued
)
(continued)
Unearned agency fees reduced by the $2,500 amount earned in December.
Computations for each of the adjusting journal entries:
$15,000 (office equipment per trial balance)/60 months = $250 per month.
14
,
950$ 38
,
300 600 250 530
Retained earnin
g
s10
,
800
Dividends 800
A
g
enc
y
fees earne
d
52
,
000
Tele
p
hone ex
p
ense 480
Office su
pp
l
y
ex
p
ense 1
,
500
Interest ex
p
ense 45
Total 113
,
355$ 113
,
355$
PROBLEM 5.6B
TOUCHTONE TALENT AGENCY (continued
)
TOUCHTONE TALENT AGENC
Y
December 31, 201
5
Adjusted Trial Balanc
e
Fees receivabl
e
a. (cont'd.)
Cash
Pre
p
aid rent
b.
52
,
000$
Ex
p
enses:
PROBLEM 5.6B
TOUCHTONE TALENT AGENCY (continued
)
Revenues:
TOUCHTONE TALENT AGENC
Y
For the Year Ended December 31, 201
5
A
g
enc
y
fees earne
d
Income Statement
b. (cont'd.)
Asset
s
14
,
950$ 38
,
300 600 250 530
PROBLEM 5.6B
TOUCHTONE TALENT AGENC
Y
TOUCHTONE TALENT AGENCY (continued
)
Fees receivabl
e
Balance Shee
t
Cash
December 31, 201
5
