3.11 PROBLEM 3.11The operations of Hempstead Realty consist of obtaining listings of houses being offered for saleby owners, advertising these houses, and showing them to prospective buyers. The company earnsrevenue in the form of commissions. The building and office equipment used in the business weteacquired on January I of the current year and were immediareiy placed in use. Useful life of thebuilding was estimated to be 30 years and that of the office equipment five years. The companycloses its accounts monthly; on March 31 of the cuirent year, the trial balance is as fcilows:End-of-Period Adjusting andGlosing Procedures; PreparingFinancial StatementsLO6,7,9, 10, 11, 12, 13 CHAPTER 3 The Accounting Cycle. Capturing Economic EventsHEMPSTEAD REALTYTrial BalanceMarch 31, 2001$ 9.750Casn7.500Accounts Receivable850Ofice Supplies30.000Land90.000%24BuiaingAccumutated Depreciation: BuildingCffice Equipment50021 00700Accumulated Depreciation: Office EquipmentAccounts Payable14,750136.650M. Valentino, Capital4.500M. Valentino. DrawingCommissions Earned20.000900Advertising ExpenseAutomobile Rental Expense500Salaries Expense7.000Telephone Expense600$172.600 $:72.600InstructionsFrom the trial balance and supplementary data given, prepare the following as of March 31. 2001:a. Adjusting entries for depreciation during March of building and of office equipment.b. Adjusting entry to recognize as expense the cost of office supplies used in March. At the endof March, the supplies on hand are estimated to have a cost of S500.c. Adjusted trial balance.d. Income statement and a statement of owner's equity for the month of March, and a balancesheet at March 31 in report form. Assume no additional investments by owner during March.e. Closing entries.f. After-closing tral balance.

Solution: Adjusting Entries are the journal entries that are made at the end of a given accounting…

The operations of Hempstead Realty consist of obtaining listings of houses being offered for sale by owners, advertising these houses, and showing them to prospective buyers. The company eams revenue in the form of commissions. The building and office equipment used in the business we:e acquired on January I of the current year and were immediareiy placed in use. Useful life of the building was estimated to be 30 years and that of the office equipment five years. The company closes its accounts monthly; on March 31 of the curent year, the trial balance is as feilows:

The operations of Hempstead Realty consist of obtaining listings of houses being offered for sale by owners, advertising these houses, and showing them to prospective buyers. The company eams revenue in the form of commissions. The building and office equipment used in the business we:e acquired on January I of the current year and were immediareiy placed in use. Useful life of the building was estimated to be 30 years and that of the office equipment five years. The company closes its accounts monthly; on March 31 of the curent year, the trial balance is as feilows:

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 22E

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