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Picard and Company: Prepare journal entries and complete the adjusted trial balance

See attached file.

PROBLEM #4

The following trial balance existed at 12/31/2250 for Picard and Company, a consulting company...

Required:

1. Prepare the journal entries for the above adjustments, record them in the appropriate columns and calculate the new balances in the adjusted trial balance.

2. What is the net income for the period?

Please see attachment for full question.

Attachments

Solution Preview

refer to the attached file.

PROBLEM #4
(15 Points)

The following trial balance existed at 12/31/2250 for Picard and Company, a consulting company.

Trial Balance Adjustments Adjusted Trial Balance
Account Dr Cr Dr Cr Dr Cr

Cash 90,000 90,000
A/R 30,000 25,000 55,000
Inventory 25,000 25,000
Prepaid Rent 24,000 6,000 18,000
Equipment 90,000 90,000
Accumulated Depr 45,000 9,000 54,000
Accounts Payable 23,000 ...

Solution Summary

The solution prepares all the necessary journal entries and posts them to the document provided in the attachment. The column are extended and balanced.

$2.19