Question

Unit 2 Assignment: Management Tools Application For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2013, Dustin decided to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into the following transactions during June:

June 1. The following assets were received from Dustin Larkin: cash, $10,000; accounts receivable, $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received.

June 1. Paid three months' rent on a lease rental contract, $4,500.

June 2. Paid the premiums on property and casualty insurance policies, $1,800.

June 4. Received cash from clients as an advance payment for services to be provided (Record it as unearned fees), $3,000.

June 5. Purchased additional office equipment on account from Crawford Company, $1,800.

June 6. Received cash from clients on account, $800.

June 10. Paid cash for a newspaper advertisement to run during June, $120.

June 12. Paid Crawford Company for part of the debt incurred on June 5, $800.

June 12. Recorded services provided on account for the period June 1 to June 12, $2,250.

June 14. Paid part-time receptionist for 2 weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).

June 17. Recorded cash from cash clients for fees earned during the period June 1-16, $3,175.

June 18. Paid cash for supplies, $750.

June 20. Recorded services provided on account for the period June 13-20, $1,100.

June 24. Recorded cash from cash clients for fees earned for the period June 17-24, $1,850.

June 26. Received cash from clients on account, $1,600.

June 27. Paid part-time receptionist for two weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).

June 29. Paid telephone bill for June, $130. Unit 2 [AC499: Bachelor’s Capstone in Accounting]

June 30. Paid electricity bill for June, $200.

June 30. Recorded cash from cash clients for fees earned for the period June 25-30, $2,050.

June 30. Recorded services provided on account for the remainder of June, $1,000.

June 30. Dustin withdrew $4,500 for personal use.

Instructions-Use the Excel template provided in the class titled “Unit 2 and 3 Management Tools Assignment” to complete the following 3 requirements for Unit 2: 1. Journalize each transaction in the two-column journal tab, referring to the following chart of accounts in selecting the accounts to be debited and credited. 11-Cash 31-Dustin Larkin, Capital 12-Accounts Receivable 32-Dustin Larkin, Drawing 14-Supplies 41-Fees Earned 15-Prepaid Rent 51-Salary Expense 16-Prepaid Insurance 52-Rent Expense 18-Office Equipment 53-Supplies Expense 19-Accumulated Depreciation 54-Depreciation Expense 21-Accounts Payable 55-Insurance Expense 22-Salaries Payable 59-Miscellaneous Expense 23-Unearned Fees 2. Post the journal to a ledger of four-column accounts, see the Excel tab labeled accordingly. 3. Prepare a trial balance as of June 30, 2013 – using the tab in the Excel workbook labeled accordingly. Be sure and save your work, you will complete the accounting cycle in Unit 3 using the same Excel Template and information. Unit 2 [AC499: Bachelor’s Capstone in Accounting] Notes: 1) Proper Journal Entry Formatting is absolutely mandatory. a. Debit Account Descriptions are to be fully left-justified in the line. b. Credit Account Descriptions are to be indented in the cell. c. A short description is required for every journal entry. 2) You will be required to create at least ONE additional general Ledger Account to accommodate a few Journal Entries. 3) You may need to add the “Miscellaneous Expense" account to the GeneralLedger. 4) Or, you may create 2 or 3 new G/L accounts. For example "Utilities." 5) Be sure that you use proper formatting when you create the Financial Statements. For example: a. Add required underlining, b. "$" signs must be properly formatted. 6) The templates are NOT fully “pre-formatted.” You must re-format them for proper presentation in a number of places. Remember, if you have any questions, concerns, or doubts about any of the instructions, please contact your instructor in the Virtual Office as soon as possible.

Answer 1

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Date	Accounts	Debit	Credit
Jun 1	Cash	$ 10,000
	Accounts Receivable	$    1,500
	Supplies	$    1,250
	Office Equipment	$    7,500
	Dustin Larkin, Capital		$ 20,250
Jun 1	Prepaid Rent	$    4,500
	Cash		$    4,500
Jun 2	Prepaid Insurance	$    1,800
	Cash		$    1,800
Jun 4	Cash	$    3,000
	Unearned Fee		$    3,000
Jun 5	Office Equipment	$    1,800
	Accounts Payable		$    1,800
Jun 6	Cash	$        800
	Accounts Receivable		$        800
Jun 10	Miscellaneous Expense	$        120
	Cash		$        120
Jun 12	Accounts Payable	$        800
	Cash		$        800
Jun 12	Accounts Receivable	$    2,250
	Fees Earned		$    2,250
Jun 14	Salary Expense	$        400
	Cash		$        400
Jun 17	Cash	$    3,175
	Fees Earned		$    3,175
Jun 18	Supplies	$        750
	Cash		$        750
Jun 20	Accounts Receivable	$    1,100
	Fees Earned		$    1,100
Jun 24	Cash	$    1,850
	Fees Earned		$    1,850
Jun 26	Cash	$    1,600
	Accounts Receivable		$    1,600
Jun 27	Salary Expense	$        400
	Cash		$        400
Jun 29	Miscellaneous Expense	$        130
	Cash		$        130
Jun 30	Cash	$    2,050
	Fees Earned		$    2,050
Jun 30	Accounts Receivable	$    1,000
	Fees Earned		$    1,000
Jun 30	Dustin Larkin, Drawing	$    4,500
	Cash		$    4,500

Trial Balance
Account	Debit	Credit
Cash	$    9,075
Accounts Receivable	$    3,450
Prepaid Rent	$    4,500
Prepaid Insurance	$    1,800
Supplies	$    2,000
Office Equipment	$    9,300
Accounts Payable		$    1,000
Unearned Fee		$    3,000
Dustin Larkin, Capital		$ 20,250
Dustin Larkin, Drawing	$    4,500
Fees Earned		$ 11,425
Salary Expense	$        800
Miscellaneous Expense	$        250
Total	$ 35,675	$ 35,675

Accounts	Date	Debit	Credit	Balance
Accounts Payable	Jun 5		1800	1800
Accounts Payable	Jun 12	800		1000
Accounts Receivable	Jun 1	1500		1500
	Jun 6		800	700
	Jun 12	2250		2950
	Jun 20	1100		4050
	Jun 26		1600	2450
	Jun 30	1000		3450
Cash	Jun 1	10000	4500	5500
	Jun 2		1800	3700
	Jun 4	3000		6700
	Jun 6	800		7500
	Jun 10		120	7380
	Jun 12		800	6580
	Jun 14		400	6180
	Jun 17	3175		9355
	Jun 18		750	8605
	Jun 24	1850		10455
	Jun 26	1600		12055
	Jun 27		400	11655
	Jun 29		130	11525
	Jun 30	2050	4500	9075
Dustin Larkin, Capital	Jun 1		20250	20250
Dustin Larkin, Drawing	Jun 30	4500		4500
Fees Earned	Jun 12		2250	2250
	Jun 17		3175	5425
	Jun 20		1100	6525
	Jun 24		1850	8375
	Jun 30		3050	11425
Miscellaneous Expense	Jun 10	120		120
	Jun 29	130		250
Office Equipment	Jun 1	7500		7500
	Jun 5	1800		9300
Prepaid Insurance	Jun 2	1800		1800
Prepaid Rent	Jun 1	4500		4500
Salary Expense	Jun 14	400		400
	Jun 27	400		800
Supplies	Jun 1	1250		1250
	Jun 18	750		2000
Unearned Fee	Jun 4		3000	3000