Complete the Following for Wickers Restoration Services

question 150

Essay

Complete the following for Wickers Restoration Services.(a) Record the following selected transactions for May in a two-column journal, identifying each entry by number. Explanations may be omitted.(b) Prepare T accounts for each account used and post the journal entries to these accounts, placing the appropriate number to the left of each amount to identify the transactions.(c) Prepare an unadjusted trial balance as of May 31.(d) Determine the net income for May.(e) Determine the retained earnings at the end of May, assuming this was the first month of business.(1)Received $48,000 from sale of common stock.(2)Paid rent on office for the month, $880.(3)Purchased supplies on account, $1,750.(4)Earned fees, receiving cash, $12,600.(5)Paid creditor on account, $1,000.(6)Paid automobile expenses for month, $375, and miscellaneous expenses, $250.(7)Paid office salaries for the month, $3,900.(8)Earned fees which the customer will pay next month, $2,400.(9)Determined that the cost of supplies used was $280.(10)Paid dividends, $2,400.

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Definitions:

IFRS

Stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide companies in preparing financial statements on a global basis.

U.S.GAAP

United States Generally Accepted Accounting Principles, which are accounting standards used in the U.S. to prepare, present, and report financial statements.

Profitability

A rephrasing of profitability analysis, it refers to a company's ability to generate profit from its operations relative to its costs.

Productivity

A measure of efficiency that shows the amount of output produced per unit of input.