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