Question

1, Journailize A-G

2, prepare trial balance

4, Prepare the Unadjusted Trial Balance in the Worksheet

5. Prepare Adjusted Trial Balance including Income Statement and Balance sheet sections.

6. Journailize Adjustments H-J and Post.

7. Prepare Financial Statements.

Transaction Ref:	Yr: 2018	External Entries included in Trial Balance
A	1-Jun	Dan Evans invests (contributes) $20,000 cash and $2,000 of supplies in business: Evans Consulting.
B	2-Jun	Evans pays seven month's rent in advance totaling $8,500 Ck # 101
C	10-Jun	Evans provides services of $20,000 on account to a customer, Aatrix Corp.
D	11-Jun	Evans purchases equipment for $28,800 with Check # 102 for $13,000 with the balance "on account" payable from Home Depot Inv #27487
		Useful life of the equipment is 5 years. $4,000 salvage value.
E	16-Jun	Evans collects $5,000 of the Accounts Receivable from Aatrix Corp.
F	18-Jun	Dan Evans takes a $2,500 draw Ck # 103
G	20-Jun	Evans purchased office supplies for $2,000 Inv# 12345 Ck #104 from Office Depot
		Adjusting Entries
H	30-Jun	June Rent Used
i	30-Jun	Equipment depreciated for one month.
J	30-Jun	Took physical Inventory of Supplies totalling $4,000
		Closing Entries
K, L		See page 161 27e Remember Explanation required: K. Closing, L. Closing, etc

Answer 1

1) The required journal entries for the given transactions are shown as follows:-

Journal Entries (Amounts in $)

No	Date	Account Titles and Explanations	Debit	Credit
A	1-Jun	Cash	20,000
		Supplies	2,000
		Dan Evans, Capital		22,000
		(To record the investment by owner)
B	2-Jun	Prepaid Rent	8,500
		Cash		8,500
		(To record the prepaid rent)
C	10-Jun	Accounts Receivable	20,000
		Service Revenue		20,000
		(To record the service on account)
D	11-Jun	Equipment	28,800
		Cash		13,000
		Accounts Payable (28,800-13,000)		15,800
		(To record the purchase of Equipment)
E	16-Jun	Cash	5,000
		Accounts Receivable		5,000
		(To record the cash received from customers)
F	18-Jun	Dan Evans, Withdrawals	2,500
		Cash		2,500
		(To record the withdrawals by owner)
G	20-Jun	Supplies	2,000
		Accounts Payable		2,000
		(To record the supplies purchased)

2) The trial balance is shown as follows:- (Amounts in $)

Account Titles	Debit	Credit
Cash (20,000-8,500-13,000+5,000-2,500)	1,000
Supplies (2,000+2,000)	4,000
Dan Evans, Capital		22,000
Prepaid Rent	8,500
Accounts Receivable (20,000-5,000)	15,000
Service Revenue		20,000
Equipment	28,800
Accounts Payable (15,800+2,000)		17,800
Dan Evans, Withdrawals	2,500
Total	59,800	59,800

4 & 5) The worksheet is shown as follows:- (Amounts in $)

Worksheet
June 30, 2018
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Acct. Title	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	1,000				1,000				1,000
Acct. receivable	15,000				15,000				15,000
Supplies	4,000				4,000				4,000
Prepaid Rent	8,500			1,214	7,286				7,286
Equipment	28,800				28,800				28,800
A/D-Equip.				413		413				413
Acct. Payable		17,800				17,800				17,800
Dan Evans, capital.		22,000				22,000				22,000
Dan Evans, W/D	2,500				2,500				2,500
Service Revenue		20,000				20,000		20,000
Rent Exp.			1,214		1,214		1,214
Depr. Exp.			413		413		413
Total	59,800	59,800	1,627	1,627	60,213	60,213	1,627	20,000	58,586	40,213
Net Income or Loss							18,373			18,373
							20,000	20,000	58,586	58,586

Working Notes:-

1) Depreciation per year = (Cost - Residual Value)/Useful Life

= ($28,800-$4,000)/5 yrs = $4,960 per year

Depreciation for June = $4,960/12 months = $413 per month

2) Rent per month = Total prepaid rent/Time period

= $8,500/7 months = $1,214 per month

3) Total supplies was $4,000 and supplies as per physical inventory count was also $4,000. Therefore no supplies are used up to June 30, 2018 and hence no adjustment needed for supplies.