Lee Technology Corporation_Completing the Accounting Cycle
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Lee Technology Corporation Unadjusted Trial Balance December 31, 2014 |
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Cash |
$ 35,572 |
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Accounts Receivable |
59,680 |
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Office Supplies |
2,443 |
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Prepaid Rent |
2,400 |
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Office Equipment |
14,300 |
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Accumulated Depreciation – Office Equipment |
$ 3,200 |
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Accounts Payable |
2,640 |
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Notes Payable |
15,000 |
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Unearned Service Revenue |
5,650 |
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Common Stock |
30,000 |
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Retained Earnings |
58,705 |
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Dividends |
15,000 |
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Service Revenue |
89,000 |
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Salaries Expense |
58,000 |
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Utilities Expense |
3,600 |
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Rent Expense |
13,200 |
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Total |
$ 204,195 |
$ 204,195 |
The following information is also available:
a. Ending inventory of office supplies, $ 538
b. Prepaid rent expired, $ 1,200
c. Depreciation of office equipment for the period, $ 800
d. Interest accrued on the note payable, $ 750
e. Salaries accrued at the end of the period, $ 800
f. Service revenue still unearned at the end of the period, $ 3,675
g. Service revenue earned but not billed, $ 1,800
h. Estimated federal income taxes for the period, $ 5,940
Requirements:
1. Prepare the adjusting entries.
2. Prepare an adjusted trial balance.
3. Prepare the financial statements: Income Statement, Statement of Retained Earnings, and the Balance Sheet.
4. Prepare the closing entries.
5. Prepare a post-closing trial balance.
Adjusting Entries
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a |
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b |
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c |
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d |
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e |
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f |
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g |
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h |
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Adjusted Trial Balance
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Lee Technology Corporation Adjusted Trial Balance December 31, 2014 |
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Cash |
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Accounts Receivable |
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Office Supplies |
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Prepaid Rent |
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Office Equipment |
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Accumulated Depreciation – Office Equipment |
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Accounts Payable |
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Interest Payable |
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Salaries Payable |
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Notes Payable |
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Unearned Service Revenue |
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Income Taxes Payable |
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Common Stock |
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Retained Earnings |
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Dividends |
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Service Revenue |
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Salaries Expense |
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Utilities Expense |
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Rent Expense |
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Office Supplies Expense |
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Depreciation Expense – Office Equipment |
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Interest Expense |
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Income Tax Expense |
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Total |
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Financial Statements
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Lee Technology Corporation Income Statement For the Year ending December 31, 2014 |
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Lee Technology Corporation Statement of Retained Earnings For the Year ending December 31, 2014 |
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Lee Technology Corporation Balance Sheet December 31, 2014 |
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Closing Entries
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R |
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E |
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I |
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D |
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Post-closing Trial Balance
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Lee Technology Corporation Post-closing Trial Balance December 31, 2014 |
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Cash |
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Accounts Receivable |
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Office Supplies |
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Prepaid Rent |
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Office Equipment |
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Accumulated Depreciation – Office Equipment |
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Accounts Payable |
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Interest Payable |
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Salaries Payable |
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Notes Payable |
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Unearned Service Revenue |
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Income Taxes Payable |
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Common Stock |
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Retained Earnings |
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Total |
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Lee Technology Corporation Worksheet December 31, 2014 |
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Account Name |
Unadjusted Trial Balance |
Adjustments |
Adjusted Trial Balance |
Income Statement |
Balance Sheet |
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debit |
credit |
debit |
credit |
debit |
credit |
debit |
credit |
debit |
credit |
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Cash |
35,572 |
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Accounts Receivable |
59,680 |
g |
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Office Supplies |
2,443 |
a |
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Prepaid Rent |
2,400 |
b |
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Office Equipment |
14,300 |
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Accumulated Depreciation – Office Equipment |
3,200 |
c |
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Accounts Payable |
2,640 |
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Notes Payable |
15,000 |
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Unearned Service Revenue |
5,650 |
f |
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Interest Payable |
d |
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Salaries Payable |
e |
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Income Tax Payable |
h |
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Common Stock |
30,000 |
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Retained Earnings |
58,705 |
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Dividends |
15,000 |
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Service Revenue |
89,000 |
f g |
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Salaries Expense |
58,000 |
e |
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Utilities Expense |
3,600 |
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Rent Expense |
13,200 |
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b |
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Office Supplies Expense |
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a |
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Depreciation Expense- Office Equipment |
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c |
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Interest Expense |
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d |
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Income Tax Expense |
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h |
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Total |
204,195 |
204,195 |
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15,170 |
15,170 |
214,285 |
214,285 |
86,195 |
92,775 |
113,090 |
113,090 |
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Net Income |
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Total |
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92,775 |
92,775 |
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-
Rating:
/5
Solution: Lee Technology Corporation_Completing the Accounting Cycle