Question

JOURNAL				PAGE 1
Date	Account Title	Post. Ref.	Debit	Credit
2018
Apr. 1	Cash		20000
	Accounts receivable		14700
	Supplies		3300
	Office equipment		12000
	Common stock			50000
	(To record common stock issued)
Apr. 1	Prepaid rent		6000
	Cash			6000
	(To record rent prepaid)
Apr. 2	Prepaid insurance		4200
	Cash			4200
	(To record insurance prepaid)
Apr. 4	Cash		9400
	Unearned fees			9400
	(To record advance collected from customers)
Apr. 5	Office equipment		8000
	Accounts payable			8000
	(To record office equipment purchased on account)
Apr. 6	Cash		11700
	Accounts receivable			11700
	(To record collection on account)
Apr. 10	Miscellaneous expense		350
	Cash			350
	(To record advertising expense paid)
Apr. 12	Accounts payable		6400
	Cash			6400
	(To record collection on account)
Apr. 12	Accounts receivable		21900
	Fees earned			21900
	(To record fees earned on account)
Apr. 14	Salary expense		1650
	Cash			1650
	(To record salary paid)

JOURNAL				PAGE 2
Date	Account Title	Post. Ref.	Debit	Credit
2018
Apr. 17	Cash		6600
	Fees earned			6600
	(To record cash fees earned)
Apr. 18	Supplies		725
	Cash			725
	(To record purchase of supplies)
Apr. 20	Accounts receivable		16800
	Fees earned			16800
	(To record fees earned on account)
Apr. 24	Cash		4450
	Fees earned			4450
	(To record cash fees earned)
Apr. 26	Cash		26500
	Accounts receivable			26500
	(To record collection on account)
Apr. 27	Salary expense		1650
	Cash			1650
	(To record salary paid)
Apr. 29	Miscellaneous expense		540
	Cash			540
	(To record telephone bill paid)
Apr. 30	Miscellaneous expense		760
	Cash			760
	(To record electricity bill paid)
Apr. 30	Cash		5160
	Fees earned			5160
	(To record cash fees earned)
Apr. 30	Accounts receivable		2590
	Fees earned			2590
	(To record fees earned on account)
Apr. 30	Dividends		18000
	Cash			18000
	(To record dividends paid)

Note: The advertising, telephone, and electricity expenses are debited to miscellaneous expense since there are no separate expense accounts provided for the same.

GENERAL JOURNAL				PAGE 3
Date	Account Title	Post. Ref.	Debit	Credit
2018	Adjusting Entries
a. Apr. 30	Insurance expense		350
	Prepaid insurance			350
	(To record expired insurance)
b. Apr. 30	Supplies expense		2800
	Supplies (3300 + 725 -1225)			2800
	(To record supplies used)
c. Apr. 30	Depreciation expense		400
	Accumulated depreciation			400
	(To record depreciation expense)
d. Apr. 30	Salary expense		275
	Salaries payable			275
	(To record salary accrued)
e. Apr. 30	Rent expense		2000
	Prepaid rent			2000
	(To record expired rent)
f. Apr. 30	Unearned fees		7050
	Fees earned (9400 - 2350)			7050
	(To record fees earned)

Prepare an income statement, a retained earnings statement, and a balance sheet.

Rosebud Consulting Income Statement For the Month Ended April 30, 2018
Expenses:
Total Expenses

If an answer is zero, enter "0".

Rosebud Consulting Retained Earnings Statement For the Month Ended April 30, 2018

Rosebud Consulting Balance Sheet April 30, 2018
Assets			Liabilities
Current assets:			Current liabilities:
			Total liabilities
Total current assets
Property, plant and equipment:			Stockholders' Equity
Total property, plant and equipment			Total stockholders' equity
Total assets			Total liabilities and stockholders' equity

9. Journalize the closing entries on Page 4 of the journal. (Do not insert the account numbers in the journal at this time.) Post the closing entries to the general ledger in the spreadsheet. Then go back and enter the appropriate posting references in the journal. (Income Summary is account #34 in the chart of accounts.)

For a compound transaction, if an amount box does not require an entry, leave it blank.

GENERAL JOURNAL				PAGE 4
Date	Description	Post.Ref.	Debit	Credit
2018	Closing Entries

10. Prepare a post-closing trial balance. List the accounts in order by type: Assets, Liablities, Capital, Dividends, Revenue, and Expenses. If an amount box does not require an entry, leave it blank.

Rosebud Consulting Post-Closing Trial Balance April 30, 2018
	Debit Balances	Credit Balances

Answer 1

	Rosebud Company
	T-Accounts
	Cash A/c
	Particular	Amount	Particular	Amount
	To Common Stock	$      20,000.00	By Prepaid Rent	$      6,000.00
	To Unearned Fees	$        9,400.00	By Prepaid Insurance	$      4,200.00
	To Accounts Receivable	$      11,700.00	By Miscellaneous expenses	$         350.00
	To Fees Earned	$        6,600.00	By Accounts Payable	$      6,400.00
	To Fees Earned	$        4,450.00	By Salary Expenses	$      1,650.00
	To Accounts Receivable	$      26,500.00	By Supplies	$         725.00
	To Fees Earned	$        5,160.00	By Salary Expenses	$      1,650.00
			By Miscellaneous expenses	$         540.00
			By Miscellaneous expenses	$         760.00
			By Dividend	$   18,000.00
			By Balance C/d	$   43,535.00
	Total	$      83,810.00	Total	$   83,810.00
	Accounts Receivable
	Particular	Amount	Particular	Amount
	To Common Stock	$      14,700.00	By Cash	$   11,700.00
	To Fees Earned	$      21,900.00	By Cash	$   26,500.00
	To Fees Earned	$      16,800.00	By Bal C/d	$   17,790.00
	To Fees Earned	$        2,590.00
	Total	$      55,990.00	Total	$   55,990.00
	Accounts Payable
	Particular	Amount	Particular	Amount
	To Cash	$        6,400.00	By Office Equipment	$      8,000.00
	To Bal C/d	$        1,600.00
		$        8,000.00		$      8,000.00
	Office Equipment
	Particular	Amount	Particular	Amount
	To Common Stock	$      12,000.00	By Bal c/d	$   20,000.00
	To Accounts Payable	$        8,000.00
	Total	$      20,000.00	Total	$   20,000.00
	Prepaid Rent
	Particular	Amount	Particular	Amount
	To Cash	$        6,000.00	By Rent	$      2,000.00
			By Bal C/d	$      4,000.00
	Total	$        6,000.00	Total	$      6,000.00
	Prepaid Insurance
	Particular	Amount	Particular	Amount
	To Cash	$        4,200.00	By Insurance	$         350.00
			By Bal C/d	$      3,850.00
	Total	$        4,200.00	Total	$      4,200.00
	Salary Expenses
	Particular	Amount	Particular	Amount
	To Cash	$        1,650.00	By Balance C/d	$      3,575.00
	To Cash	$        1,650.00
	To Salary Payble	$            275.00
	Total	$        3,575.00	Total	$      3,575.00
	Insurance
	Particular	Amount	Particular	Amount
	To Prepaid Insurance	$            350.00	By Bal b/d	$         350.00
	Total	$            350.00	Total	$         350.00
	Miscellaneous Expenses
	Particular	Amount	Particular	Amount
	To Cash	$            350.00	By Balance C/d	$      1,650.00
	To Cash	$            540.00
	To Cash	$            760.00
	Total	$        1,650.00	Total	$      1,650.00
	Salary Payable
	Particular	Amount	Particular	Amount
	To Bal C/d	$            275.00	By Salary Expenses	$         275.00
	Total	$            275.00	Total	$         275.00
	Unearned Fees
	Particular	Amount	Particular	Amount
	To Fees Earned	$        7,050.00	By Cash	$      9,400.00
	To Balance C/d	$        2,350.00
	Total	$        9,400.00	Total	$      9,400.00
	Supplies A/c
	Particular	Amount	Particular	Amount
	To Common Stock	$        3,300.00	By Supplies Expenses	$      2,800.00
	To cash	$            725.00	By Balance C/d	$      1,225.00
	Total	$        4,025.00	Total	$      4,025.00
	Supplies ExpensesA/c
	Particular	Amount	Particular	Amount
	To supplies	$        2,800.00	By Balance C/d	$      2,800.00
	Total	$        2,800.00	Total	$      2,800.00
	Depreciation
	Particular	Amount	Particular	Amount
	To Accumulated Depreciation	$            400.00	By Balance C/d	$         400.00
	Total	$            400.00	Total	$         400.00
	Accumulated Depreciation
	Particular	Amount	Particular	Amount
	To Balance C/d	$            400.00	By Depreciation	$         400.00
	Total	$            400.00	Total	$         400.00
	Fees Earned
	Particular	Amount	Particular	Amount
	To Balance C/d	$      64,550.00	By Accounts receivable	$   21,900.00
			By Cash	$      6,600.00
			By Accounts receivable	$   16,800.00
			By Cash	$      4,450.00
			By Cash	$      5,160.00
			By Accounts receivable	$      2,590.00
			By Unearned Fees	$      7,050.00
	Total	$      64,550.00	Total	$   64,550.00
	Dividend
	Particular	Amount	Particular	Amount
	To Cash	$      18,000.00	By Balance C/d	$   18,000.00
	Total	$      18,000.00		$   18,000.00
	Adjusted Trial Balance
	Heads	Debit	Credit
	Cash	$      43,535.00
	Accounts Receivable	$      17,790.00
	Supplies	$        1,225.00
	Prepaid Insurance	$        3,850.00
	Prepaid Rent	$        4,000.00
	Equipment	$      20,000.00
	Accumulated Depreciation- Equipment		$                                    400.00
	Accounts Payable		$                                1,600.00
	Salary Payable		$                                    275.00
	Unearned Fees		$                                2,350.00
	Common Stock		$                              50,000.00
	Serive Revenue		$                              64,550.00
	Salary Expenses	$        3,575.00
	Rent Expenses	$        2,000.00
	Insurance Expenses	$            350.00
	Supplies Expenses	$        2,800.00
	Miscellaneous	$        1,650.00
	Depreciation Expenses	$            400.00
	Dividend	$      18,000.00
	Total	$    119,175.00	$                            119,175.00
	Rosebud Company
	Income Statement
	For the Month Ended April30th,2018
	Revenue
	Fees Earned		$                              64,550.00
	Expenses:
	Salaries	$        3,575.00
	Insurance	$            350.00
	Rent	$        2,000.00
	Depreciation-Office Equipment	$            400.00
	Supplies Expenses	$        2,800.00
	Miscellaneous Expenses	$        1,650.00
	Total Expenses		$                              10,775.00
	Net Income		$                              53,775.00
	Rosebud Company
	Statement of Retained Earnings
	Beginning Retained Earnings	$                     -
	Add: Net Income	$      53,775.00
	Less: dividend Paid	$      18,000.00
	Ending Retained Earnings	$      35,775.00
	Rosebud Company
	Balance Sheet
	April 30th,2018
	Liabilities	Amount	Assets	Amount
	Accounts Payable	$        1,600.00	Cash	$   43,535.00
	Salary Payable	$            275.00	Accounts Receivable	$   17,790.00
	Unearned Service Revenue	$        2,350.00	supplies	$      1,225.00
	Accumulated Depreciation-Office Equipment	$            400.00	Prepaid Rent	$      3,850.00
	Common Stock	$      50,000.00	Prepaid Insurance	$      4,000.00
	Retained Earnings	$      35,775.00	Office Equipment	$   20,000.00
	Total	$      90,400.00		$   90,400.00