Accounting help please?

Answers:5   |   LastUpdateAt:2018-02-05 11:57:08  

Asked at 2012-07-30 11:04:04
Hi there can anyone help me with this accounting problem please. Thank you?
George Jarvis Purchase a trailer Park on January 1 0007. It is now March 31. George has no accounting training but has kept a record of his cash receipts and cash payments for the three months.

Cash Reciepts Cash Payments
Jarvis Investment for a trailer 100,000

Land 168,000

Building 216,000

Office Equipment 8,000

Mortgage Payable 350,000

Insurance 4,800

Wages 4,500

Maintenance 400

office Supplies 300

utilities 900

property taxes 6,000

Jarvis Salary 10,500

Rental sales Revenue 60,000

Morgage Interest Expense 4,667

Mortgage Principal payments Jan. and Feb 20000

As Mr. Jarvis accountant, you discovered the following additional information

a. The building has an estimated life of 20 years and a straight line deppreciaton is used

b. The office equiplment has a five year life with a trade in value of $500

c. The insurance was prepaid on January 1 for the entire year

d. The wages are for the maintenance worker who worked but has not yet been paid for five years during the period ending March 31.0007. The wage is 9.95 per hour and the work day is 8 hours

e. An Invoice for grounds maintenance expense of $80 has not yet been paid

F. There are $100 in office supplies remaining in inventory

g. The March Utility bill has not yet been recieved. It is estimated to be $400

h. The property taxes were paid in January for the entire Year.

i. A rental tenant whose rent is $200 has not yet paid for March.

j. Included in the $60,000 dollars recieved for rental Income to date is the amount for tenant who has prepaid for the entire year.The rent is $ 175 per month.

k. No Interest Principal has been paid on the Mortgage for March. Interest for March is $2,333. Principal Payments for the balance of the year ( including March) are $ 12,000 and should be identified as current mortgage payable. The Balance of the Mortgage is $336,000

l. The Income tax is 25% of operating income and is payable in April. Using accrual based accounting prepare an income statement for the three months ending March 31,0007 and a balance sheet as of March 31,007.
Answer1 Answered at 2017-08-07 13:03:25
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