Question

Part 1 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)   In the spreadsheet, prepare the adjusted trial balance. 4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during April is $350. b. Supplies on hand on April 30 are $1,225. c. Depreciation of office equipment for April is $400. d. Accrued receptionist salary on April 30 is $275. e. Rent expired during April is $2,000. f. Unearned fees on April 30 are $2,350. 8. 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 CONSULTING
Income Statement
for the month ended April30, 2018
Fees Earned	64550
Expenses:
Salary Expense	3500
Supplies Expense	2800
Depreciation Expense	400
Rent Expense	2000
Insurance Expense	350
Miscellaneous Expense	1650
Total Expenses	10700
Net Income	53850
ROSEBUD CONSULTING
Statement of Retained Earnings
for the month ended April30, 2018
Balance as at April 1, 2018	0
Add: Net income for the month	53850
Less: Dividend paid	18000
Balance as at April 30, 2018	35850

ROSEBUD CONSULTING
Balance Sheet
as at April 30, 2018
Assets			Liabilities
Current Assets:			Currenr Liabilities
Cash		46125	Accounts Payable		1600
Accounts Receivable		15200	Unearned Fees		2350
Supplies		1225	Salary Payable		200
Prepaid Rent		4000
Prepaid Insurance		3850
Current Assets		70400	Total Liabilities		4150
Property, Plant and Equipment:			Stockholders' Equity
Ofice Equipment	20000		Common Stock		50000
Accumulated Depreciation - Office Equipment	400		Retained Earnings		35850
Total Property, Plant and Equipment		19600	Total Stockholders' Equity		85850
Total Assets		90000	Total Liabilities and Stockholders' Equity		90000

Working:

ROSEBUD CONSULTING
Worksheet for the month ending April 30, 2018
	Transactions		Unadjusted		Adjustments		Adjusted
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	86400	40275	46125				46125
Accounts Receivable	53400	38200	15200				15200
Supplies	4025		4025			2800	1225
Prepaid Rent	6000		6000			2000	4000
Prepaid Insurance	4200		4200			350	3850
Ofice Equipment	20000		20000				20000
Accumulated Depreciation - Office Equipment						400		400
Accounts Payable	6400	8000		1600				1600
Unearned Fees		9400		9400	7050			2350
Salary Payable						200		200
Common Stock		50000		50000				50000
Dividend	18000		18000				18000
Fees Earned		57500		57500		7050		64550
Salary Expense	3300		3300		200		3500
Supplies Expense					2800		2800
Depreciation Expense					400		400
Rent Expense					2000		2000
Insurance Expense					350		350
Miscellaneous Expense	1650		1650				1650
Total	203375	203375	118500	118500	12800	12800	119100	119100