Cumulative Comprehension Problem Echo Systems Assignment

Assignment Task

This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the Chapter 2 segment has not Chapter 2 Because of its length, this problem been completed, the assignment can begin at this point. You need to use the facts presented in is most easily solved if you use the Working Papers that accompany this book. 

After the success of its first two months, Mary Graham has decided to continue operating Echo Systems. The transactions Page 233 Chapter 2. Before proceeding in December, Graham adds these new that occurred in these months are described in accounts to the chart of accounts for the ledger:

Required

1. Prepare journal entries to record each of the following transactions for Echo Systems. Post the entries to the accounts in the ledger.
Dec.

• 3 Paid $2.100 to the Lakeshore Mall for the company's share of mall advertising costs.
• 3 Paid $1.200 to repair the company's computer.
• 4 Received $7,500 from Alamo Engineering Co. for the receivable from the prior month.
• 10 Paid Carly Smith for six days' work at the rate of $200 per day.
• 14 Notified by Alamo Engineering Co. that Echo's bid of $12,000 on a proposed project was accepted. Alamo paid an
• advance of $3,000.
• 17 Purchased $2.310 of computer supplies on credit from Abbott Office Products.
• 18 Sent a reminder to Fostek Co. to pay the fee for services originally recorded on November 8.
• 20 Completed a project for Elite Corporation and received $11.250 cash.
• 24-28 Took the week off for the holidays.
• 31 Received $5,700 from Fostek Co. on its receivable.
• 31 Reimbursed Mary Graham's business automobile expenses of 600 kilometres at $1.00 per kilometre.
• 31 Graham withdrew $3,600 cash from the business.

2. Prepare adjusting entries to record the following additional information collected on December 31, 2020. Post the entries to the accounts in the ledger.

a. The December 31 inventory of computer supplies was $1.440.

b. Three months have passed since the annual insurance premium was paid.

c. As of the end of the year, Carly Smith has not been paid for four days of work at the rate of $200 per day.

d. The computer is expected to have a four-year life with no residual value.

e. The office equipment is expected to have a three-year life with no residual value.

f. Prepaid rent for three of the four months has expired.

3. Prepare an adjusted trial balance as of December 31, 2020.

4. Prepare an income statement and statement of changes in equity for the three months ended

5. Prepare a balance sheet as of December 31, 2020.

This Accounting has been solved by our PhD Experts at My Uni Paper.