Question

During November, the first month of operations, the following transactions occurred: Date Event 1-Nov Paid $7,200 for 12 months rent on office space 2-Nov Purchased office furniture for $8,950. 3-Nov Purchased $11,354 of additional office supplies on account. 8-Nov Borrowed 20,000 from the bank for operating cash. The note has a 3% interest rate (simple interest) and is to be paid back in 4 years 15-Nov Received $10,800 from Fortuna Inc. for work to be performed over the next 12 months. 20-Nov Paid $1,560 for utilities. 21-Nov Performed services for various customers for $13,200 cash and another $18,100 on account. 25-Nov Paid $8,650 for purchases of supplies previously made on account. 27-Nov Paid salaries to employees totaling $5,200 for 1 week. 30-Nov Collected $12,300 as payment for amounts previously billed. 30-Nov Dividends of $3,000 were declared and paid. At the end of November, the following additional information is available to help determine what adjustments are needed: 30-Nov One month of the prepaid rent has been used up 30-Nov Supplies on hand are $8,150. 30-Nov One month of interest has accrued on the note payable for the bank loan. 30-Nov One month of the services for the Fortuna Inc. has been performed (see above). 30-Nov Salaries of $5,200 are paid every Friday (for a 5 day work week). November 30, 2017 was a Thursday. 30-Nov Additional work for customers of $9,580 has been performed during the last week of November but not yet billed 30-Nov Depreciation expense for the computer equipment is $140 and for the office furniture is $120 SUGGESTED STEPS FOR COMPLETION OF THE PROJECT: 1 Prepare journal entries to record the November transactions given. Please refer to the Worksheet tab for Account Titles you may need. 2 Add the November journal entry information to the Worksheet in the November columns. You can do this in one of 2 ways - (1) Post the journal entries to ledger accounts using T-accounts to represent ledger accounts and then use those totals to post to the worksheet or (2) use excel to add all entries for a particular account into the correct column in the worksheet (ie., add all cash debits from the journal entries into the cash debit column for November entries). There is a tab to use for T Accounts if you want but they are NOT required 3 Prepare an unadjusted trial balance as of November 30, 2017. This will be part of the Worksheet you prepare. There is a tab in this file that you will use for this. Excel formulas must be used throughout the project to obtain full credit. 4 Prepare adjusting entries for the month of November given the information provided. 5 Post the adjusting entries to the Adjusting entries columns on the worksheet 6 Prepare an adjusted trial balance as of November 30, 2017. This will be part of the Worksheet you prepare. There is a tab in this file that you will use for this. 7 Prepare financial statements for the month ending November 30, 2017. (Income Statement, Statement of Retained Earnings, Classified Balance Sheet ). Formatting is important and will be graded so be sure you use dollar signs and underlines as appropriate. Also be sure you have headings and proper column usage for all statements. There is a tab for these statements. Heading are PARTIALLY completed for the 3 statements. 8 Prepare closing entries for the end of the period 9 Copy the Worksheet from the Worksheet tab to the Worksheet formulas tab and the Financial Statements from the Financial Statements tab to the Financial Statements tab. Highlight the entire worksheet/financial statements area respecively and press the "ctrl" key and the "~" key. This will cause the formulas used to display instead of the numbers. Save your file with the formulas displayed.

Answer 1

	Journal Entries
	November 30th
Date	Particular	Amount (DR)	Amount(Cr)
1-Nov	Prepaid Rent	$            7,200.00
	To Cash		$                        7,200.00
	(Being amount of Rent Paid for 12 months )
2-Nov	Office Furniture	$            8,953.00
	To Cash		$                        8,953.00
	(Being amount paid for Office Furniture)
3-Nov	Office Supplies	$         11,354.00
	To Accounts Payable		$                      11,354.00
	(Being amount of purchase of office supplies on account)
8-Nov	Cash	$         20,000.00
	To 3% Note Payable		$                      20,000.00
	(Being amount borrowed from bank)
15-Nov	Cash	$         10,800.00
	To Unearnd Service Revenue		$                      10,800.00
	(Being amount received in advance from Fortuna for work to be performed in 12 months)
20-Nov	Utilities	$            1,560.00
	To Cash		$                        1,560.00
	(Being amount of Utilities expenses paid in cash)
21-Nov	Cash	$         13,200.00
	Accounts Receivable	$         18,100.00
	To Service Revenue		$                      31,300.00
	(Being amount of Service Revenue)
25-Nov	Accounts Payable	$            8,650.00
	To Cash		$                        8,650.00
	(Being amount paid for office supplies purchased on Nov 3rd)
27-Nov	Salaries	$            5,200.00
	To Cash		$                        5,200.00
	(Being amount paid to employees for 1 week)
30-Nov	Cash	$         12,300.00
	To Accounts Receivable		$                      12,300.00
	(Being amount of cash received from customer)
30-Nov	Dividend	$            3,000.00
	To Cash		$                        3,000.00
	(Being amount of Dividend declared and paid)
30-Nov	Rent A/c=($7200/12)	$               600.00
	To Prepaid Rent		$                            600.00
	(Being amount of Rent Expenses for Nov)
30-Nov	Supplies Expenses=($11354-$8150)	$            3,204.00
	To Supplis		$                        3,204.00
	(Being amount of Supples Expenses)
30-Nov	Interest A/c=($20000*3%*1/12)	$                  50.00
	To Interest Payable		$                              50.00
	(Being amount of Interest due on Note Payble)
30-Nov	Unearned Service Revenue=($10800/12)	$               900.00
	To Service Revenue		$                            900.00
	(Being amount of Service performed for one month of the amount received as advance from Fortuna Inc.)
30-Nov	Salaries	$            5,200.00
	To Salaries Payable		$                        5,200.00
	(Being amount of Salaries Payable)
30-Nov	Unbilled Accounts Receivable	$            9,580.00
	To Service Revenue		$                        9,580.00
	(Being amount of service performed but not billed)
	Cash A/c
	Particular	Amount(DR)	Particular	Amount (CR)
	To Note Payable	$         20,000.00	By Prepaid Rent	$      7,200.00
	To Unearned Service Revenue	$         10,800.00	By Office Furniture	$      8,953.00
	To Service Revenue	$         13,200.00	By Utilites	$      1,560.00
	To Accounts Receivable	$         12,300.00	By Accounts Payable	$      8,650.00
			By Salaries	$      5,200.00
			By Dividend	$      3,000.00
			By Bal C/d	$   21,737.00
	Total	$         56,300.00	Total	$   56,300.00
	Accounts Receivable A/c
	Particular	Amount(DR)	Particular	Amount (CR)
	To Service Revenue	$         18,100.00	By Cash	$   12,300.00
			By Balance C/d	$      5,800.00
	Total	$         18,100.00	Total	$   18,100.00
	Office Supplies A/c
	Particular	Amount(DR)	Particular	Amount (CR)
	To Accounts Payable	$         11,354.00	By Supplies Expenses	$      3,204.00
			By Balance c/d	$      8,150.00
	Total	$         11,354.00	Total	$   11,354.00
	Prepaid Rent A/c
	Particular	Amount(DR)	Particular	Amount (CR)
	To Cash	$            7,200.00	By Rent A/c	$         600.00
			By Balance c/d	$      6,600.00
	Total		Total	$      7,200.00
	Office Furniture A/c
	Particular	Amount(DR)	Particular	Amount (CR)
	To Cash	$            8,953.00	By Balance C/d	$      8,953.00
	Total		Total
	3% Note Payable
	Particular	Amount(DR)	Particular	Amount (CR)
	By Balance c/d	$         20,000.00	By Caah	$   20,000.00
	Total	$         20,000.00	Total	$   20,000.00
	Accumulated Depreciation-Computer Equipment
	Particular	Amount(DR)	Particular	Amount (CR)
	To Balance C/d	$               140.00	By Depreciation	$         140.00
	Total	$               140.00	Total	$         140.00
	Accumulated Depreciation-Office Furniture
	Particular	Amount(DR)	Particular	Amount (CR)
	To Balance C/d	$               120.00	By Depreciation	$         120.00
	Total		Total
	Accounts Payable
	Particular	Amount(DR)	Particular	Amount (CR)
	To Cash	$            8,650.00	By Office Supplies	$   11,354.00
	To Balance C/d	$            2,704.00
	Total	$         11,354.00	Total	$   11,354.00
	Salaries Payable
	Particular	Amount(DR)	Particular	Amount (CR)
	To Balance B/d	$            5,200.00	By Salaries	$      5,200.00
	Total	$            5,200.00	Total	$      5,200.00
	Unearned Service Revenue
	Particular	Amount(DR)	Particular	Amount (CR)
	To Accounts Receivable	$               900.00	By Cash	$   10,800.00
	To Balance C/d	$            9,900.00
	Total	$         10,800.00	Total	$   10,800.00
	Service Revenue
	Particular	Amount(DR)	Particular	Amount (CR)
	To Balance C/d	$         41,780.00	By Cash	$   13,200.00
			By Accounts Receivable	$   18,100.00
			By Unearned Service Revenue	$         900.00
			By Unbilled accounts Receivable	$      9,580.00
	Total	$         41,780.00	Total	$   41,780.00
	Depreciation Expense-Computer Equipment
	Particular	Amount(DR)	Particular	Amount (CR)
	To Accumulated Depreciation	$               140.00	By Balance C/d	$         140.00
	Total		Total
	Depreciation Expense-Office Furniture
	Particular	Amount(DR)	Particular	Amount (CR)
	To Accumulated Depreciation	$               120.00	By Balance C/d	$         120.00
	Total		Total
	Salaries Expenses
	Particular	Amount(DR)	Particular	Amount (CR)
	To Cash	$            5,200.00	By Balance C/d	$   10,400.00
	To Salary Payable	$            5,200.00
	Total	$         10,400.00	Total	$   10,400.00
	Rent Expenses
	Particular	Amount(DR)	Particular	Amount (CR)
	To Prepaid Rent	$               600.00	By Balance C/d	$         600.00
	Total		Total
	Utilities Expenses
	Particular	Amount(DR)	Particular	Amount (CR)
	To Cash	$            1,560.00	By Balance C/d	$      1,560.00
	Total	$            1,560.00	Total	$      1,560.00
	Interest Expenses
	Particular	Amount(DR)	Particular	Amount (CR)
	To Interest Payable	$                  50.00	By Balance C/d	$            50.00
	Total	$                  50.00	Total	$            50.00
	Interest Payable
	Particular	Amount(DR)	Particular	Amount (CR)
	To Balance C/d	$                  50.00	By Interest	$            50.00
	Total	$                  50.00	Total	$            50.00
	Trial Balance
	Trial Balance November 30th
	Accounts Title	Debit	Credit
	Cash	$         21,737.00
	Accounts Receivable	$            5,800.00
	Office Supplies	$            8,150.00
	Prepaid Rent	$            6,600.00
	Unbilled Accounts Receivable	$            9,580.00
	3% Note Payable		$                      20,000.00
	Accumulated Depreciation-Computer Equipment		$                            140.00
	Accumulated Depreciation-Office Furniture		$                            120.00
	Office Furniture	$            8,953.00
	Accounts Payable		$                        2,704.00
	Salaries Payable		$                        5,200.00
	Unearned Service Revenue		$                        9,900.00
	Dividend	$            3,000.00
	Service Revenue		$                      41,780.00
	supplies Expenses	$            3,204.00
	Depreciation Expenses-Computer	$               140.00
	Depreciation Expenses-Office Furniture	$               120.00
	Salaries Expenses	$         10,400.00
	Rent Expenses	$               600.00
	Interest Expenses	$                  50.00
	Interest Payable		$                              50.00
	Utilities Expenses	$            1,560.00
	Total	$         79,894.00	$                      79,894.00