a. Prepare journal entries for the transactions listed above and adjusting entries.

1) Cash
Share Capital - Preference
Share Premium - Preference

2) Cash
Share Capital - Ordinary
Share Premium - Ordinary

3) Accounts Receivable
Service Revenue

4) Cash
Unearned Service Revenue

5) Cash
Accounts Receivable

6) Supplies
Accounts Payable

7) Accounts Payable
Cash

8) Treasury Shares
Cash

9) Other Operating Expenses

Cash

10) Cash Dividends (1,800+25,250)

Dividends Payable
(30,000x6%=1,800 , 50,900x0,5=25,450 , 25,450-(400x0,5)=25,250)

11) Allowance for Doubtful Accounts

Accounts Receivable

Adjusting Entries

1) Supplies Expense (4,400+26,100-5,900)

Supplies

2) Unearned Service Revenue

Service Revenue (36,100x9/12)
3) Bad Debt Expense [3,500-(1,500-1,300)]
Allowance for Doubtful Accounts

4) Depreciation Expense
Accumulated Depreciation - Buildings
(130,000-10,000)/30

5) Income Tax Expense

Income Taxes Payable

b. Prepare an adjusted trial balance at December 31, 2020.

Voltaire Corporation
Adjusted Trial Balance
December 31, 2020.
Accounts Debit Credit
Cash 143,300
Accounts Receivable 53,200
Allowance for Doubtful Acc. 3,500
Supplies 5,900
Land 40,000
Buildings 130,000
Accum.Dep.-Buildings 24,000
Accounts Payable 19,500
Income Taxes Payable 24,870
Unearned Service Revenue 9,000
Dividends Payable 27,050
Share Capital - Preference 30,000
Share Premium - Preference 3,000
Share Capital - Ordinary 50,900
Share Premium - Ordinary 5,400
Retained Earnings 147,400
Cash Dividends 27,050
Treasury Shares 3,200
Service Revenue 303,000
Bad Debt Expense 3,300
Depreciation Expense 4,000
Supplies Expense 24,600
Other Operating Expense 188,200
Income Tax Expense 24,870
Total $ 647,620.00 $ 647,620.00
 Cash
Bal. 24,600 32,300
33,000 3,200
6,300 188,200
36,000
267,000
Bal. 143,300

Accounts Payable
32,300 25,600 Bal.
26,100

19,500 Bal.

Unearned Service Revenue

27,000 36,000

9,000 Bal.

Land
Bal. 40,000

Bal. 40,000

Buildings
Bal. 130,000

Bal. 130,000

Bad Debt Expense

3,300
 3,300

Retained Earnings
147,400

147,400

Treasury Shares
3,200

3,200

c. Prepare an income statement and a retained earnings statement for the year ending De

Voltaire Corporation
Income Statement
December 31, 2020.
Sales Revenue 303,000
Operating Expenses
Supplies Expense 24,600
Depreciation Expense 4,000
Bad Debt Expense 3,300
Other Operating Expense 188,200
Total Operating Expenses 220,100
Income before income taxes 82,900
Income tax expense 24,870
Net Income $ 58,030.00

Voltaire Corporation
Statement of Financial Position
December 31, 2020.
Assets
Current Assets
Cash 143,300
Supplies 5,900
Accounts Receivable 53,200
Allowance for Doubtful Accounts 3,500
Total Current Assets 198,900
Property, Plant , and Equipment
Land 40,000
 Buildings 130,000
Less Accum.Dep.-Buildings 24,000
Total Plant Assets 146,000
Total Assets $ 344,900.00

Liabilities and Stockholder's Equity

Current Liabilities
Accounts Payable 19,500
Income Tax Payable 24,870
Dividends Payable 27,050
Unearned Service Revenue 9,000
Total Current Liabilities 80,420
Stockholder's Equity
Share capital - premium 30,000
Share capital - ordinary 50,900
Share premium - preference 3,000
Share premium - ordinary 5,400
Retained Earnings 178,380
Less: Treasury Stock 3,200
Total Liabilities and Stockholder's Equity $ 344,900.00
bove and adjusting entries.

Dr Cr
33,000
30,000
3,000

6,300
900
5,400

276,000
276,000

36,000
36,000

267,000
267,000

26,100
26,100

32,200
32,200

3,200
3,200

188,200
188,200

27,050
27,050
=25,250)

1,300
1,300

24,600
24,600

27,000
27,000
 3,300
3,300

4,000
4,000

24,870
24,870

Trial Balance Adjusment

Accounts
Dr Cr Dr Cr
Cash 24,600 118,700
Accounts Receivable 45,500 7,700
Allowance for Doubtful Acc. 1,500 2,000
Supplies 4,400 1,500
Land 40,000
Buildings 130,000
Accum.Dep.-Buildings 20,000 4,000
Accounts Payable 25,600 6,100
Income Taxes Payable 24,870
Unearned Service Revenue 9,000
Dividends Payable 27,050
Share Capital - Preference 30,000
Share Premium - Preference 3,000
Share Capital - Ordinary 50,000 900
Share Premium - Ordinary 5,400
Retained Earnings 147,400
Cash Dividends 27,050
Treasury Shares 3,200
Service Revenue 303,000
Bad Debt Expense 3,300
Depreciation Expense 4,000
Supplies Expense 24,600
Other Operating Expense 188,200
Income Tax Expense 24,870
Total $ 244,500.00 $ 244,500.00 $ 409,220.00 $ 409,220.00

Voltaire Corporation
T-Accounts
 Accum.Depreciation - Building
20,000 Bal. Bal.
4,000

24,000 Bal. Bal.

Income Taxes Payable

24,870 Bal.

24,870 Bal.

Supplies
Bal. 4,400 24,600
26,100

Bal. 5,900

Share Capital - Preference

30,000

30,000

Share Capital - Ordinary

50,000 Bal.
900

50,900 Bal.

Depreciation Expense
4,000
 4,000

Other Operating Expense

188,200

188,200

Service Revenue
276,000
27,000

303,000 Bal.

ment for the year ending December 31, 2020, and a classified statement of financial position as of December 31, 2020.

Voltaire Corporat
Retained Earnings Stat
December 31, 2020.
Retained Earnings 1/1/2020 $ 147,400.00
Add: Net Income 58,030
205,430
Less: Dividends 27,050
Retained Earnings 31/12/2020 $ 178,380.00
Adjusted Trial Balance
Dr Cr
143,300
53,200
3,500
5,900
40,000
130,000
24,000
19,500
24,870
9,000
27,050
30,000
3,000
50,900
5,400
147,400
27,050
3,200
303,000
3,300
4,000
24,600
188,200
24,870
$ 647,620.00 $ 647,620.00
 Accounts Receivable
45,500 267,000
276,000 1,300

53,200

Allowance for Doubtful Accounts

1,300 1,500 Bal.
3,300

3,500 Bal.

Dividends Payable
27,050

27,050

Share Premium - Preference

3,000

3,000

Share Premium - Ordinary

5,400

5,400

Supplies Expense
24,600
 24,600

Income Tax Expense

24,870

24,870

Cash Dividends
27,050

27,050

on as of December 31, 2020.