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In: Accounting

Instructions: 1. Analyze, journalize, and post daily transactions. (Daily transaction data included below.) 2. Prepare an...

Instructions:
1. Analyze, journalize, and post daily transactions. (Daily transaction data included below.)
2. Prepare an unadjusted trial balance (general ledger balances after daily transactions have been posted but before adjusting entries are posted).
3. Analyze, journalize, and post adjusting entries. (Adjustment data included below.)
4. Prepare an adjusted trial balance (general ledger balances after adjusting entries have been posted but before closing entries are posted).
5. Prepare the financial statements: income statement, statement of owner's equity, and balance sheet.
6. Analyze, journalize, and post closing entries.
7. Prepare the post-closing trial balance.
Note 1: All forms are provided, including (in order of listing) General Journal, Unadjusted Trial Balance, Adjusted Trial Balance, Income Statement,
Statement of Owner's Equity, Balance Sheet, and Post-Closing Trial Balance. Be sure to use the following account names in the Chart of Accounts
(exactly as they are listed).
Note 2: General ledger accounts for posting begin at cell B24. Remember, when preparing the trial balances, the amounts come from the general ledger.
Be sure to:
1. Post only the daily transactions and then prepare the unadjusted trial balance.
2. Prepare the adjusted trial balance immediately after posting the adjusting entries.
3. Prepare the post-closing trial balance after posting the closing entries.
Acct.
No. Chart of Accounts
101 Cash
106 Accounts Receivable
124 Supplies
128 Prepaid Rent
167 Equipment
168 Accumulated Depreciation
201 Accounts Payable
209 Salaries Payable
301 Happy, Capital
302 Happy, Withdrawals
405 Fees Earned
612 Depreciation Expense
622 Salaries Expense
637 Insurance Expense
640 Rent Expense
650 Supplies Expense
901 Income Summary
Transactions for April:
YOU'VE DONE IT!
General Journal
Date Account Titles Trans. No. Debit Credit
Apr. 1 Owner invested cash of $50,000 and equipment of $150,000.
1
2 Paid rent for six months, $24,000 ($4,000 per month for 6 months). (Check #1)
2
3 Purchased supplies for cash of $7,000. (Check #2)
3
8 Paid insurance for April, $2,000. (Check #4)
4
10 Performed tax services for clients, receiving cash of $20,000 immediately.
5
12 Paid employee salary of $1,000 for April 1-12. (Check #5)
6
15 Performed tax services for clients on account, $15,000.
7
20 Collected $5,000 from clients on account for services performed and
recorded on April 15. Balance to be collected in May.
10
26 Paid employee salary of $1,000 for April 15-26. (Check #6)
8
28 Purchased equipment on account, $30,000.
9
29 Paid $10,000 for equipment purchased on account on April 28. Balance to be
paid in May and June. (Check #7)
10
30 Owner withdrew $8,000 for personal use. (Check #8)
11
Reminder: Stop here and post the daily transactions to the general ledger.
Then prepare the unadjusted trial balance.
Adjusting Entries
Apr. 30 Adjust for expired rent for month.
12
30 Adjust for supplies used. Ending supplies inventory is $4,400.
13
30 Adjust for monthly depreciation of equipment, $3,000.
14
30 Adjust for salaries. Salary accrued but unpaid is $400.
15
30 Accrued fees earned from clients are $9,000.
16
Reminder: Stop here and post the adjusting entries to the general ledger.
Then prepare the adjusted trial balance and financial statements.
Closing Entries
Apr. 30 Closing entry #1
17
30 Closing entry #2
18
30 Closing entry #3
19
30 Closing entry #4
20
Reminder: Stop here and post the closing entries to the general ledger.
Then prepare the post-closing trial balance.
YOU'VE DONE IT!
Unadjusted Trial Balance
April 30, 2007
Account Titles Debits Credits
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Happy, Capital
Happy, Withdrawals
Fees Earned
Depreciation Expense
Salaries Expense
Insurance Expense
Rent Expense
Supplies Expense
Totals
YOU'VE DONE IT!
Adjusted Trial Balance
April 30, 2007
Account Titles Debits Credits
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Happy, Capital
Happy, Withdrawals
Fees Earned
Depreciation Expense
Salaries Expense
Insurance Expense
Rent Expense
Supplies Expense
Totals
YOU'VE DONE IT!
Income Statement
For Month Ended April 30, 2005
Revenues:
   Fees earned
Expenses:
   Depreciation expense
   Salaries expense
   Insurance expense
   Rent expense
   Supplies expense
   Total expenses
Net income
YOU'VE DONE IT!
Statement of Owner's Equity
For Month Ended April 30, 2007
Happy, Capital, April 1, 2007
Plus: Investment by owner
         Net income
Total
Less withdrawals
Happy, Capital, April 30, 2007
YOU'VE DONE IT!
Balance Sheet
April 30, 2007
Assets
Cash
Accounts receivable
Supplies
Prepaid rent
Equipment
Accumulated depreciation
Total assets
Liabilities
Accounts payable
Salaries payable
Total liabilities
Owner's Equity
Happy, Capital
Total liabilities and equity
YOU'VE DONE IT!
Post-Closing Trial Balance
April 30, 2007
Account Titles Debits Credits
Cash
Accounts receivable
Supplies
Prepaid rent
Equipment
Accumulated depreciation
Accounts payable
Salaries payable
Happy, Capital
Totals
YOU'VE DONE IT!
General Ledger
Cash Account No. 101
Date Explanation Trans. No. Debit Credit Balance
Apr 1 Daily 1
2 Daily 2
3 Daily 3
8 Daily 4
10 Daily 5
12 Daily 6
20 Daily 8
26 Daily 9
29 Daily 11
30 Daily 12
Accounts Receivable Account No. 106
Date Explanation Trans. No. Debit Credit Balance
Apr. 15 Daily 7
20 Daily 8
30 Adjusting 17
Supplies Account No. 124
Date Explanation Trans. No. Debit Credit Balance
Apr. 3 Daily 3
30 Adjusting 14
Prepaid Rent Account No. 128
Date Explanation Trans. No. Debit Credit Balance
Apr. 2 Daily 2
30 Adjusting 13
Equipment Account No. 167
Date Explanation Trans. No. Debit Credit Balance
Apr. 1 Daily 1
28 Daily 10
Accumulated Depreciation Account No. 168
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Adjusting 15
Accounts Payable Account No. 209
Date Explanation Trans. No. Debit Credit Balance
Apr. 28 Daily 10
29 Daily 11
Salaries Payable Account No. 209
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Adjusting 16
Happy, Capital Account No. 301
Date Explanation Trans. No. Debit Credit Balance
Apr. 1 Daily 1
30 Closing 20
30 Closing 21
Happy, Withdrawals Account No. 302
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Daily 12
30 Closing 21
Fees Earned Account No. 405
Date Explanation Trans. No. Debit Credit Balance
Apr. 10 Daily 5
15 Daily 7
30 Adjusting 17
30 Closing 18
Depreciation Expense Account No. 612
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Adjusting 15
30 Closing 19
Salaries Expense Account No. 622
Date Explanation Trans. No. Debit Credit Balance
Apr. 12 Daily 6
26 Daily 9
30 Adjusting 16
30 Closing 19
.
Insurance Expense Account No. 637
Date Explanation Trans. No. Debit Credit Balance
Apr. 8 Adjusting 4
30 Closing 19
Rent Expense Account No. 640
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Adjusting 13
30 Closing 19
Supplies Expense Account No. 650
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Adjusting 14
30 Closing 19
Income Summary Account No. 901
Date Explanation Trans. No. Debit Credit Balance
Apr. 30 Closing 18
30 Closing 19
30 Closing 20

Solutions

Expert Solution

General Journal
Date Account title Trans.No. Debit Credit
Apr.1 Cash 1 50000
Equipment 150000
Happy, Capital 200000
(Investment made by owner)
Apr.2 Prepaid Rent 2 24000
Cash 24000
(Rent paid for 6 months   Check #1)
Apr.3 Supplies 3 7000
Cash 7000
(Supplies purchased for cash Check# 2)
Apr.8 Insurance Expense 4 2000
Cash 2000
(Insurance paid for April Check #4)
Apr.10 Cash 5 20000
Fee Earned 20000
(Cash received for service performed)
Apr.12 Salary Expense 6 1000
Cash 1000
(Salary paid check #5)
Apr.15 Accounts Receivable 7 15000
Fee Earned 15000
(Services performed on account )
Apr.20 Cash 5000
Accounts Receivable 5000
(Collected on account from clients)
Apr.26 Salary Expense 8 1000
Cash 1000
(Salary paid check #6)
Apr.28 Equipment 9 30000
Accounts Payable 30000
(Purchase of equipment on account)
Apr.29 Accounts Payable 10 10000
Cash 10000
(Part payment made for equipment Ch# 7)
Apr.30 Happy, Withdrawals
Cash 11 8000
(Cash withdrawn by the owner) 8000
Adjusting Entries
Date Account title Trans.No. Debit Credit
Apr.30 Rent Expense 12 4000
Prepaid Rent 4000
(Expired rent acounted)
Apr.30 Supplies Expense 13 2600
supplies 2600
(Supplies used recorded. Bal. Of supplies 4,400)
Apr.30 Depreciation expense 14 3000
Accumulatd Depreciation - equipment 3000
(Depreciation on equipment for April)
Apr.30 Salaries Expense 15 400
Salaries Payable 400
(Accrued and unpaid salaries)
Apr.30 Accounts Receivable 16 9000
Fee earned 9000
(Accrued fee earned from clients)
Trial Balance as at April 30
Unadjusted Adjustments Adjusted
Debit Credit Debit Credit Debit Credit
Cash 22000 22000
Accounts Receivable 10000 9000 19000
Supplies 7000 2600 4400
Prepaid Rent 24000 4000 20000
Equipment 180000 180000
Accumulated Depreciation - Equipment 3000 3000
Accounts Payable 20000 20000
Salaries Payable 400 400
Happy, Capital 200000 200000
Happy, Withdrawals 8000 8000
Fee Earned 35000 9000 44000
Depreciation Expense 3000 3000
Salaries Expense 2000 400 2400
Insurance Expense 2000 2000
Rent Expense 4000 4000
Supplies Expense 2600 2600
T o t a l 255000 255000 19000 19000 267400 267400
Closing Entries
Date Account title Trans.No. Debit Credit
Apr.30 Fee Earned 17 44000
Income Summary 44000
(Closing of Fee earned to income summary)
Apr.30 Income Summary 18 14000
Depreciation expense 3000
Salary expense 2400
Insurance expense 2000
Rent Expense 4000
Supplies expense 2600
Apr.30 Income Summary 19 30000
Happy, Capital 30000
(Income summary closed to owner's capital account)
Apr.30 Happy, Capital 20 8000
Happy, withdrawals 8000
Trial Balance as at April 30
Post Closing
Debit Credit
Cash 22000
Accounts Receivable 19000
Supplies 4400
Prepaid Rent 20000
Equipment 180000
Accumulated Depreciation - Equipment 3000
Accounts Payable 20000
Salaries Payable 400
Happy, Capital 222000
Happy, Withdrawals 8000
Fee Earned
Depreciation Expense
Salaries Expense
Insurance Expense
Rent Expense
Supplies Expense
T o t a l 253400 245400

General Ledger

Cash Accounts Receivable
Date Explanation Trans.no. Debit Credit Balance Date Explanation Trans.no. Debit Credit Balance
Apr.1 Daily 1 50000 50000 Apr.15 Daily 7 15000 15000
Apr.2 Daily 2 24000 26000 Apr.20 Daily 5000 10000
Apr.3 Daily 3 7000 19000 Apr.30 Adj. 16 9000 19000
Apr.8 Daily 4 2000 17000
Apr.10 Daily 5 20000 37000 Prepaid Rent
Apr.12 Daily 6 1000 36000 Date Explanation Trans.no. Debit Credit Balance
Apr.20 Daily 5000 41000 Apr.2 Daily 2 24000 24000
Apr.26 Daily 8 1000 40000 Apr.30 Adj. 12 4000 20000
Apr.29 Daily 10 10000 30000
Apr.30 Daily 11 8000 22000 Accumulated Depreciation - Equipment
Date Explanation Trans.no. Debit Credit Balance
Supplies Apr.30 Adj. 14 3000 3000
Date Explanation Trans.no. Debit Credit Balance
Apr.3 Daily 3 7000 7000 Accounts Payable
Apr.30 Adj. 13 2600 4400 Date Explanation Trans.no. Debit Credit Balance
Apr.28 Daily 9 30000 30000
Equipment Apr.29 Daily 10 10000 20000
Date Explanation Trans.no. Debit Credit Balance
Apr.1 Daily 1 150000 150000 salaries Payable
Apr.28 Daily 9 30000 180000 Date Explanation Trans.no. Debit Credit Balance
Apr.30 Adj. 15 400 400
Happy, capital
Date Explanation Trans.no. Debit Credit Balance Happy,withdrawals
Apr.1 Daily 1 200000 200000 Date Explanation Trans.no. Debit Credit Balance
Apr.30 Closing 19 30000 230000 Apr.30 Daily 11 8000 8000
Apr.30 Closing 20 8000 222000 Apr.30 Closing 20 8000 0
Fee Earned
Date Explanation Trans.no. Debit Credit Balance Depreciation expense
Apr.10 Daily 5 20000 20000 Date Explanation Trans.no. Debit Credit Balance
Apr.15 Daily 7 15000 35000 Apr.30 Adj. 14 3000 3000
Apr.30 Adl 16 9000 44000 Apr.30 Closing 18 3000 0
Apr.30 Closing 17 44000 0
Salaries Expense Insurance Expense
Date Explanation Trans.no. Debit Credit Balance Date Explanation Trans.no. Debit Credit Balance
Apr.12 Daily 6 1000 1000 Apr.8 Daily 4 2000 2000
Apr.26 Daily 8 1000 2000 Apr.30 Closing 18 2000 0
Apr.30 Adj. 15 400 2400
Apr.30 Closing 18 2400 0 Supplies Expense
Date Explanation Trans.no. Debit Credit Balance
Rent Expense Apr.30 Adj. 13 2600 2600
Date Explanation Trans.no. Debit Credit Balance Apr.30 Closing 18 2600 0
Apr.30 Adj. 12 4000 4000
Apr.30 Closing 18 4000 0
Income Summary
Date Explanation Trans.no. Debit Credit Balance
Apr.30 Closing 17 44000 44000
Apr.30 Closing 18 14000 30000
Apr.30 Closing 19 30000 0

ekkarill92 answered 10 months ago
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