In: Accounting
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 |
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Expenses: | ||
Total Expenses | ||
If an answer is zero, enter "0".
Rosebud Consulting Retained Earnings Statement For the Month Ended April 30, 2018 |
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Rosebud Consulting Balance Sheet April 30, 2018 |
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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 | |||
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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 |
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Debit Balances | Credit Balances | |
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 | ||||