Question

COMPREHENSIVE PROBLEM Sam started Samuel Technology Service in February, 2015. The following transactions occurred in March, 2015: Mar 1 Received cash from customers on account, $ 3,500. 2 Paid cash for advertising on a local website, $ 600. 3 Received cash from customers as an advance payment for technical support services to be provided in the future, $ 5,000. 6 Paid technician $ 1,500 in salary, including the amount owed at the end of February. 8 Paid $ 800 on account. 12 Billed customers for services provided on account, $ 12,200. 16 Received $ 7,750 cash for fees earned for jobs completed. 17 Paid technician $ 1,500 in salary. 18 Purchased supplies on account, $ 800. 20 Received $ 16,400 cash for fees earned for jobs completed. 21 Billed customers for services provided on account, $ 6,400. 23 Received cash from customers on account, $ 19,000. 26 Paid phone bill for the month, $ 240. 28 Paid electricity bill for the month, $ 580. 30 Billed customers for services provided on account, $ 7,800. 31 Received cash from customers on account, $ 10,200. 31 Sam withdrew $16,000 for personal use. INSTRUCTIONS: 1. The chart of accounts and the post-closing trial balance as of February 28, 2015 are given. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the ledger. Date the balances March 1, 2015, and place a check mark ( ✓ ) in the Posting Reference column. 2. Journalize each of the March transactions in the journal provided using Samuel Technology Service’s chart of accounts. (Do not insert the account numbers in the journal at this time). 3. Post the journal to the ledger. (Enter posting references now). 4. Prepare an unadjusted trial balance. 5. At the end of March, the following adjustment data were assembled. Use this data to complete instructions ( 5 ) and ( 6 ): a. Supplies on hand were $ 1,200. b. Rent expired during the month was $ 3,200. c. Unearned fees at the end of the month were $ 4,000. d. Insurance expired during the month was $ 600. e. Accrued salaries payable were $ 480. f. Depreciation on equipment during the month was $ 660. 6. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet/worksheet and complete the worksheet. (extra credit +5 points if completed & correct). 7. Journalize and post the adjusting entries. 8. Prepare an adjusted trial balance. 9. Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet. 10. Record and post the closing entries. Indicate closed accounts in the ledger by inserting a line in both of the Balance columns opposite each closing entry. 10.Prepare a post-closing trial balance. SAMUEL TECHNOLOGY SERVICE CHART OF ACCOUNTS 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Ren t 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Sam OlinCapital 32 Sam Olin, Drawing 41 Fees Earned 51 Salaries Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense SAMUEL TECHNOLOGY SERVICE POST-CLOSING TRIAL BALANCE FEBRUARY 28, 2015 DEBIT CREDIT Cash 44,200 Accounts Receivable 6,800 Supplies 2,700 Prepaid Rent 6,400 Prepaid Insurance 3,000 Office Equipment 29,000 Accumulated Depreciation 660 Accounts Payable 1,600 Salaries Payable 240 Unearned Fees 5,000 Sam Olin, Capital 84,600 Total 92,100 92,100

LOOKING FOR BALANCE SHEET AND INCOME STATEMENT

Answer 1

Post closing Trial Balance February 28, 2015
	Post Closing Trial Balance		March Transactions		March Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$44,200		40,630				$84,830
Accounts Receivable	$6,800		(6,300)				$500
Supplies	$2,700		800			2,300	$1,200
Prepaid rent	$6,400					3,200	$3,200
Prepaid Insurance	$3,000					600	$2,400
Office Equipment	$29,000						$29,000
Accumulated Depreciation		$660				660		$1,320
Accounts Payable		$1,600		-				$1,600
Salaries Payable		$240	240			480		$480
Unearned Fees		$5,000		5,000	6,000			$4,000
Sam Olin, Capital		$84,600						$84,600
Sam Olin, Drawings			16,000				$16,000
Service Revenue				50,550		6,000		$56,550
Advertisement Expense			600				$600
Salaries Expenses			2,760		480		$3,240
Telephone Expense			240				$240
Utility Expense			580				$580
Supplies Expense					2,300		$2,300
Rent Expense					3,200		$3,200
Depreciation-Equipment					660		$660
Insurance Expense					600		$600
Total	$92,100	$92,100	$55,550	$55,550	$13,240	$13,240	$148,550	$148,550
Income Statement
For the year ended March 31, 2015
	Amount
Service Revenue		$56,550
Operating Expenses:
Advertisement Expense	$600
Salaries Expenses	$3,240
Telephone Expense	$240
Utility Expense	$580
Supplies Expense	$2,300
Rent Expense	$3,200
Depreciation-Equipment	$660
Insurance Expense	$600
Total Expenses		$11,420
Net Profit		$45,130
Balance Sheet
as of March 31, 2015
ASSETS	Amount
Current Assets:
Cash	$84,830
Accounts Receivable	$500
Supplies	$1,200
Prepaid rent	$3,200
Prepaid Insurance	$2,400
Total Current Assets		$92,130
Office Equipment	$29,000
Accumulated Depreciation	($1,320)	$27,680
Total Assets		$119,810
LIABILITIES AND EQUITY
Current Liabilities:.
Accounts Payable	$1,600
Salaries Payable	$480
Unearned Fees	$4,000
Total Current Liabilities		$6,080
Equity:
Sam Olin, Capital	$84,600
Sam Olin, Drawings	($16,000)
Retained Earnings	$45,130
Total Equity		$113,730
Total Liabilities and Equity		$119,810