Question

.

Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.

1-Dec

Began business by depositing $9500 in a bank account in the name of the company in exchange for

950 shares of $10 per share common stock.

1-Dec

Paid the rent for the current month, $850 .

1-Dec

Paid the premium on a one-year insurance policy, $1320 .

1-Dec

Purchased Equipment for $4200 cash.

5-Dec

Purchased office supplies from XYZ Company on account, $300 .

15-Dec

Provided services to customers for $6800 cash.

16-Dec

Provided service to customers ABC Inc. on account, $4600 .

21-Dec

Received $2200 cash from ABC Inc., customer on account.

23-Dec

Paid $170 to XYZ company for supplies purchased on account on December 5 .

28-Dec

Paid wages for the period December 1 through December 28, $5040 .

30-Dec

Declared and paid dividend to stockholders $200 .

#2.

Post all of the December transactions from the “General Journal” tab to the T-accounts under the “T-Accounts” tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts.

#3.

Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31.

#4.

Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" .

Provide the total of the credit column from the Unadjusted Trial Balance

#5.

Record the following four transactions as adjusting entries under the “General Journal” tab.

31-Dec

One month’s insurance has been used by the company $110.

31-Dec

The remaining inventory of unused office supplies is $90.

31-Dec

The estimated depreciation on equipment is $70.

31-Dec

Wages incurred from December 29 to December 31 but not yet paid or recorded total $540.

#6.

Post all of the adjusting entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31.

#7.

Prepare the adjusted trial balance under the “Adjusted Trial Balance” tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" .

Provide the following accounts balances from the Adjusted Trial Balance:

Cash

Accounts Receivable

Supplies

Prepaid Insurance

Equipment

Accumulated Depreciation

Accounts Payable

Wages Payable

Common Stock

Retained Earnings

#8.

Prepare Income Statement, Statement of Stockholder’s Equity, and Classified Balance Sheet under the “Financial Statements” tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx".

Provide the following amount from the Income Statement:

Service Revenue

Depreciation Expense

Wages Expense

Supplies Expense

Rent Expense

Insurance Expense

Net Income

Provide the following account balance from the Statement of Stockholders' Equity:

Dividends

Provide the following account balances from the Balance Sheet:

Current Assets

Long-Term Assets

Total Liabilities

Total Stockholder’s Equity

Cash

#9.

Record the closing entries under the “General Journal” tab.

#10.

Post all of the closing entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted.

Provide the ending balance of Cash at December 31 from the T-account

Provide the balance of the Retained Earnings T-account after closing entries have been posted.

Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet?

Check Point: Total Assets

$ 14,550.00

200 points   

Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Answer 1

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1-Dec	Cash	9,500.00
	Commom Stock		9,500.00
	(record the issue of common stock)
1-Dec	Rent Expense	850.00
	Cash		850.00
	(Record the rent expense)
1-Dec	Prepaid Insurance	1,320.00
	Cash		1,320.00
	(Record the Insurance paid)
1-Dec	Equipment	4,200.00
	Cash		4,200.00
	(record the equipment purchased)
5-Dec	Supplies	300.00
	Accounts Payable		300.00
	(Record the purchase of supplies on account)
15-Dec	Cash	6,800.00
	Service Revenue		6,800.00
	(Record the service revenue)
16-Dec	Accounts Receivable	4,600.00
	Service Revenue		4,600.00
	(Record the service revenue)
21-Dec	Cash	2,200.00
	Accounts Receivable		2,200.00
	(record the cash recd
23-Dec	Accounts Payable	170.00
	Cash		170.00
	(record the cash paid)
28-Dec	Wages Expense	5,040.00
	Cash		5,040.00
	(Record the wages paid)
30-Dec	Dividends	200.00
	Cash		200.00
	(record the dividends paid)

Answer 2 & 3.
Cash					Accounts Receivable					Supplies
Beg. Bal.	-	850.00	1-Dec		Beg. Bal.	-	2,200.00	21-Dec		Beg. Bal.	-
1-Dec	9,500.00	1,320.00	1-Dec		16-Dec	4,600.00				5-Dec	300.00
15-Dec	6,800.00	4,200.00	1-Dec
21-Dec	2,200.00	170.00	23-Dec
		5,040.00	28-Dec
		200.00	30-Dec
End. Bal.	6,720.00				End. Bal.	2,400.00				End. Bal.	300.00
Prepaid Insurance					Equipment					Accumulated Depreciation
Beg. Bal.	-				Beg. Bal.		-			Beg. Bal.		-
1-Dec	1,320.00				1-Dec	4,200.00
End. Bal.	1,320.00				End. Bal.	4,200.00				End. Bal.		-
Accounts Payable					Wages Payable					Common Stock
Beg. Bal.		-			Beg. Bal.		-			Beg. Bal.		-
23-Dec	170.00	300.00	5-Dec									9,500.00	1-Dec
End. Bal.		130.00			End. Bal.		-			End. Bal.		9,500.00
Retained Earnings					Dividends					Service Revenue
					30-Dec	200.00						6,800.00	15-Dec
												4,600.00	16-Dec
End. Bal.	-				End. Bal.	200.00				End. Bal.		11,400.00
Depreciation Expense					Wages Expense					Supplies Expense
					28-Dec	5,040.00
End. Bal.	-				End. Bal.	5,040.00				End. Bal.	-
Rent Expense					Insurance Expense
1-Dec	850.00
End. Bal.	850.00				End. Bal.	-

Answer 4.
Trial Balance
Accounts Title	Debits	Credits
Cash	6,720.00
Accounts Receivable	2,400.00
Supplies	300.00
Prepaid Insurance	1,320.00
Service Revenue		11,400.00
Equipment	4,200.00
Accumulated Depreciation		-
Accounts Payable		130.00
Wages Payable		-
Common Stock		9,500.00
Retained Earnings		-
Dividends	200.00
Depreciation Expense	-
Wages Expense	5,040.00
Supplies Expense	-
Rent Expense	850.00
Insurance Expense	-
Total	21,030.00	21,030.00