ACC120 - Principles of Financial Accounting 2020 Mid-Term Problem Information Janet Stevens began her tax business,...

ACC120 - Principles of Financial Accounting 2020 Mid-Term Problem Information Janet Stevens began her tax business, Stevens Tax Service, on February 1, 2020. Below is the Chart of Accounts for the company: Acct # Account Title 11 Cash 12 Accounts receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 23 Unearned Fees 31 Janet Stevens, Capital 32 Janet Stevens, Drawing 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense After closing the books at the end of March, Stevens Tax Service had the following post-closing trial balance: Stevens Tax Service Post-Closing Trial Balance March 31, 2020 Acct # Account Title Debit Credit 11 Cash 12,800 12 Accounts Receivable 9,750 14 Supplies 725 15 Prepaid Rent 5,000 16 Prepaid Insurance 2,250 18 Office Equipment 10,500 19 Accumulated Depreciation 700 21 Accounts Payable 1,510 23 Unearned Fees 1,800 31 Janet Stevens, Capital 37,015 Totals 41,025 41,025 2 During the month of April, 2020, Stevens Tax Service entered into the following transactions: Apr. 3. Received cash from clients as advance payments for services to be provided and recorded it as unearned fees, $4,500.

5. Received cash from clients on account, $5,550.

8. Paid cash for an online advertisement for $600.

10. Paid Office Depot on account, $1,000.

12. Recorded services provided on account for the period of April 1-15, $9,450.

14. Paid receptionist for two weeks’ salary $1,500.

15. Recorded cash from cash clients for fees earned during the period of April 1-15, $8,300.

16. Purchased office supplies on account, $1,500.

20. Paid telephone bill, $500.

21. Paid electricity bill, $720.

25. Recorded cash received from clients on account, $6,200.

28. Paid receptionist for two weeks’ pay, $1,500.

30. Recorded cash from cash clients for fees earned for the period March 16-30, $8,900.

30. Recorded services on account for February 16-30, $10,600. 30. Janet withdrew $9,000 for personal use. Instructions:

1. Journalize each of the April transactions in the two-column journal provided. Record transactions for April 1-15 on page 5 of the journal. Record transactions for April 16-30 on page 6 of the journal. Only use accounts listed in the Chart of Accounts.

2. Post the transactions from the journal to the general ledger accounts.

3. Prepare an unadjusted trial balance on the worksheet provided.

4. At the end of April, the following adjustment data were assembled. Analyze and use this data to prepare and journalize the adjusting journal entries in journal page 7: a. Insurance expired during April, $250. b. Supplies on hand on April 30, $l,250. c. Depreciation on office equipment for April, $350. d. Rent expired during April, $500. e. Unearned fees on April 30, $3,400.

5. Enter the adjusting entries on the worksheet and complete all ten columns of the worksheet.

6. Post the adjusting journal entries in the general ledger accounts.

7. Prepare an income statement, statement of owner’s equity, and classified balance sheet.

8. Prepare and journalize the closing entries on page 8 of the journal.

9. Post the closing entries in the general ledger accounts.

10. Prepare a post-closing trial balance as of April 30, 2020.

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Expert Solution

	Steven Tax service
	Journal entries
	For the month of April 2020
Date	Particular	Debit ($)	Credit($)
Apr-03	Cash	4500
	To unearned fees		4500
Apr-05	Cash	5550
	To accounts receivable		5550
Apr-08	Miscellaneous expenses	600
	To Cash		600
Apr-10	Accounts payable	1000
	To Cash		1000
Apr-12	Accounts receivable	9450
	To service revenue		9450
Apr-14	Salaries expenses	1500
	To cash		1500
Apr-15	Cash	8300
	To service revenue		8300

Apr-16	Supplies	1500
	To accounts payable		1500
Apr-20	Miscellaneous expenses	500
	To Cash		500
Apr-21	Miscellaneous expenses	720
	To Cash		720
Apr-25	Cash	6200
	To Accounts receivable		6200
Apr-28	Salaries expenses	1500
	To Cash		1500
Apr-30	Cash	8900
	To service revenue		8900
Apr-30	Accounts receivable	10600
	To service revenue		10600
Apr-30	Drawings	9000
	To Cash		9000

Steven Tax service
General Ledger
Cash
Particular	Debit($)	Particular	Credit($)
To balance	12800	By miscellaneous	1820
To unearned fees	4500	(600+500+720)
To accounts receivable	11750	By accounts payable	1000
(5550+6200)		By drawings	9000
To service revenue	17200	To salary expenses	3000
(8300+8900)		(1500+1500)
		By balance	31430
	46250		46250

Accounts receivable
Particular	Debit($)	Particular	Credit($)
To balance	9750	By cash	11750
To service revenue	20050	(5550+6200)
(9450 + 10600)		By balance	18050
	29800		29800

Supplies
Particular	Debit($)	Particular	Credit($)
To balance	725	By balance	2225
To accounts payable	1500
	2225		2225

Accounts payable
Particular	Debit($)	Particular	Credit($)
To cash	1000	By balance	1510
	2010	By supplies	1500
	3010		3010

Unearned fees
Particular	Debit($)	Particular	Credit($)
To balance	6300	By balance	1800
		By cash	4500
	6300		6300

Service revenue
Particular	Debit($)	Particular	Credit($)
To balance	37250	By cash	17200
		(8300+8900)
		By accounts receivable	20050
		(9450 + 10600)
	37250		37250

Miscellaneous expenses
Particular	Debit($)	Particular	Credit($)
To cash		By balance	1820
Advertisment	600
Electricity	720
Telephone	500

Salary Expense
Particular	Debit($)	Particular	Credit($)
To cash	3000	By balance	3000
(1500+1500)

Steven Tax service
Unadjusted Trial Balance
Particular	Debit ($)	Credit($)
Cash	31430
acconts receivable	18050
supplies	2225
prepaid rent	5000
prepaid insurance	2250
office equipment	10500
accumulated depreciation		700
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ACC120 - Principles of Financial Accounting 2020 Mid-Term Problem Information Janet Stevens began her tax business,...

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