The following information is pertinent:
All insurance was paid in January for year policies that are now expired
The credit manager estimates that $ of Accounts Receivable will be uncollectible
Depreciation for has not yet been adjusted. The current year depreciation is calculated to
be $
The commissions are paid to independent contractors, not employees
No investments or withdraws were made by owners during the year
Some of the supplies and office supplies were specific to a certain project, were used
immediately, and were originally charged to expense accounts
A physical count of ordinary office supplies indicated that $ worth of office supplies were still
present
Client Expense includes items such as permits, inspections, etc. that were paid by the business
for specific clients
The client has elected to omit substantially all notes and disclosures that would normally
accompany a financial statement
Directions:
Prepare journal entries to post the adjustments.
Prepare a Balance Sheet as of December and related statements of Income and Equity
for the year then ended a worksheet may be helpful
Draft a cover letter forwarding these statements to your client All Seasons Service and guiding
them in making adjustments and closing entries.
The statements must be in a professional typed format.
