ACC 201 Week 2 P3-43 The problem Haupt Consulting situation The problem continues the Haupt Consulting situation from problem 2-64 of chapter 2. Start from the trial blance and the posted T accounts that Haupt Consulting prepared December 18 as follows: Haupt Consulting Trial Balance December 18, 2010 Balance Account Title Debit Credit Cash 8,100 Accounts Receivable 1,700 Supplies 300 Equipment 2,000 Accumulated Depreciation – Equipment Furniture 3,600 Accumulated Depreciation – Furniture Accounts Payable 3,900 Salary Payable Unearned Service Revenue Carl Haupt, Capital 10,000 Carl Haupt, Withdrawals Service Revenue 2,500 Rent Expense 500 Utilities Expense 200 Salary Expense Depreciation Expense – Equipment Depreciation Expense – Furniture Supplies Expense Total $16,400 $16,400 Later in December, the business completed these transactions as follows: Dec 21 Received $900 in advance for client service to be performed evenly over the next 30 days. Dec 21 Hired secretary to be paid $1,500 on the 20th day of each month. The secretary begins work immediately. Dec 26 Paid $300 on account Dec 28 Collected $600 on account Dec 30 Owner withdrew $1,600 Required: 1. Open these additional T-accounts: Accumulated depreciation-equipment; Accumulated depreciation-furniture; Salary payable; Unearned service revenue; Depreciation expense-equipment; Depreciation expense-furniture; Supplies expense. 2. Journalize the transactions of Dec 21-30. 3. Post to the T-accounts, keying all items by date 4. Prepare a trial balance at December 31. Also set up columns for the adjustments and for the adjusted trial balance. 5. At December 31, the business gathers the following information for the adjusting entries: a. Accrued service revenue, $400 b. Earned $300 of the service revenue collected in advance on December 21 c. Supplies on hand, $100 d. Depreciation expense-equipment, $33; furniture, $60 e. Accrued $700 expense for secretaryâ€™s salary On your work sheet make these adjustments directly in the adjustments columns, and complete the adjusted trial balance at December 31. Throughout the book, to avoid rounding errors, we base adjusting entries on 30-day months and 360-day years. 6. Journalize and post the adjusted entries. In the T-accounts denote each adjusting amount as Adj and an account balance as Bal. 7. Prepare the income statement and the statement of ownerâ€™s equity of Haupt Consulting for the month ended December 31, 2010, and prepare the balance sheet at that date.