Question

In: Accounting

MIKE’S QUALITY REPAIR SERVICES Accounting 101 Term Project In this project, you will use the concepts...

MIKE’S QUALITY REPAIR SERVICES

Accounting 101 Term Project

In this project, you will use the concepts you have learned in Chapters 1 – 6 to complete the accounting functions for a business for a single month. You will start with the initial investment of cash in the business, and end the month by preparing the month-end adjustments and financial statements. The purpose of this project is to bring together the concepts that you have learned so far in this class, and see how all of the pieces fit together.

CHART OF ACCOUNTS

Assets Revenue

111 Cash 411 Income from Services

112 Accounts Receivable

114 Supplies Expenses

116 Prepaid Insurance 511 Advertising Expense

121 Office Equipment 512 Supplies Expense

122 Accum. Depr., Office Equipment 513 Insurance Expense

123 Tools 514 Utilities Expense

124 Accum. Depr., Tools 515 Salaries Expense

125 Truck 516 Truck Expense

521 Depreciation Expense - Office Equipment

Liabilities 522 Depreciation Expense - Tools

211 Accounts Payable

Owner’s Equity

311 Mike Hammer, Capital

312 Mike Hammer, Drawing

330 Income Summary

Instructions

Download the Excel file found in Canvas, Mike’s Quality Repair Services.xlsx. You will complete all work for this assignment in that file, and upload it to Canvas when completed.

Journalize the transactions for the month of January, 2018, beginning on page GJ1. Be sure and list the Debit Account(s) first; Credit Account(s) next. Write a brief explanation for each transaction, and skip a line in-between transactions.

Post the journal entries to the general ledger accounts. Be sure and use the Post Reference #s for each posting. (Hint: the balance of the cash account after all journal entries have been posted should be $9,915).

Prepare the Trial Balance section of the worksheet.

Prepare the Adjustments section of the worksheet.

Compute and record the adjustment for supplies used during the month. An inventory showed supplies on hand of $250.

One month insurance has been used up.

Record the adjustment for depreciation of Office Equipment of $85 for the month.

Record the adjustment for depreciation of Tools of $125 for the month.

Complete the worksheet.

Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet for the month. Be sure to add the date to each financial statement.

Journalize and post the Adjusting entries.

Journalize and post the Closing entries.

Prepare a Post-closing Trial Balance.

Transactions for the month:

You made the following transactions for Mike’s Quality Repair Services during the month of January:

Jan. 1 Invested $15,000 cash, and a truck with a fair market value of $8,500 into the business.

3 Paid $1800 to Liberty Mutual for a 1-year insurance policy. The policy is effective immediately. Ck# 1001

4 Bought tools from Sears on account, $7500, Inv. #X-1357

5 Bought computer system from Ben’s Computer Center, $5000, putting $2500 down and putting the balance on account, Ck. #1002, Inv. #Y-4152.

6 Bought supplies-Office Mart, $850, Ck. #1003.

7 Performed services for cash, $1,650.

10 Performed services on account, $1275.

12 Received and paid telephone bill, $420, ck#1004.

13 Bought supplies on account from Office Mart, $900, Inv. AB1477.

15 Received and paid the utility bill, $600, Ck. #1005.

15 Paid salary for office clerk, 1/1-1/15-$1000, Ck# 1006.

20 Received The Times Review bill for advertising for the month, $410, Inv. #TR198.

(Note that you did not PAY the bill – you only received it).

21 Performed services $7,250, received $2,250 cash, with the balance due in 30 days.

27 Received from clients $1,275, for work completed on January 10.

28 Paid for oil change on truck, $90, ck#1007.

29 Withdrew cash for personal use, $1500, Ck. #1008.

30 Paid salary for office clerk, 1/16-1/30, $1000, ck#1009.

30 Made partial payment of $500 to Office Mart for supplies purchased on January 13th, Ck#1010.

Solutions

Expert Solution

MIKES QUALITY SERVICES
DATE ACCOUNT NAME DEBIT CREDIT
1-Jan CASH $ 15,000.00
TRUCK $    8,500.00
       TO CAPITAL ACCOUNT $ 23,500.00
(RECORDING OF CAPITAL INVESTMENT BY CASH & ASSET)
3-Jan PREPAID INSURANCE $    1,800.00
     TOCASH $    1,800.00
(PAYMENT OF INSURANCE PREMIUME)
4-Jan TOOLS $    7,500.00
     TO SEARS $    7,500.00
(PURCHASE OF ASSETS)
5-Jan OFFICE EQUIPMENT $    5,000.00
    TO CASH $    2,500.00
     TO BENS COMPUTER CENTER $    2,500.00
(PURCHASE OF COMPUTER PARTIAL PAYMENT)
6-Jan SUPPLIES $       850.00
     TO CASH $       850.00
7-Jan CASH $    1,650.00
    TO SERVICE INCOME $    1,650.00
(SERVICE INCOME)
10-Jan DEBTORS $    1,275.00
    TO SERVICE INCOME $    1,275.00
(SERVICE INCOME ON ACCOUNT)
12-Jan TELEPHONE EXPENSES $       420.00
   TO CASH $       420.00
(RECORDING OF TELEPHONE EXPENSES
13-Jan SUPPLIES $       900.00
TO OFFICE MART $       900.00
(PURCHASE OF SUPPLIES ON ACCOUNT)
15-Jan UTIL;ITY EXPENSES $       600.00
   TO CASH $       600.00
(PAYMENT OF UTILITY BILL)
SALARY $    1,000.00
    TO CASH $    1,000.00
(PAYMENT OF SALARY)
20-Jan ADVERTISEMENT $       410.00
TO THE TIMES REVIEW $       410.00
(RECORDING OF BILL FOR PAYMENT ADVERTISING)
21-Jan CASH $    2,250.00
DEBTORS $    5,000.00
   TO SERVICE INCOME $    7,250.00
(RECORDING OF INCOME)
27-Jan CASH $    1,275.00
TO DEBTORS $    1,275.00
(RECEIPT OF TRADE RECEIVABLE)
28-Jan MAINTENANCE EXPENSES $          90.00
   TO CASH $          90.00
(OIL CHANGE)
29-Jan DRAWINGS A/C $    1,500.00
TO CASH $    1,500.00
(DRAWINGS FOR PERSONAL USE)
30-Jan SALARY $    1,000.00
TO CASH $    1,000.00
(OFFICE SALARY)
OFFICE MART $       500.00
TOCASH $       500.00
( CASH PAYMENT TO TRADE PAYABLE)
31-Jan SUPPLIES EXPENSES $    1,500.00
TO SUPPLIES $    1,500.00
ADJUSTENT OF SUPPLIES USED)
INSURANCE $       150.00
TO PREPAID INSURANCE
(USAGE OF INSURANCE)
DEPRECIATION $       210.00
TO OFFICE EQUIPMENT $          85.00
TO TOOLS $       125.00
(BIENG DEPRECIATION)
UTILITY EXPENSES
15-Jan CASH $         600.00 PROFIT AND LOSS $        600.00
SALARY
15-Jan CASH $      1,000.00
28-Jan SLARY $      1,000.00
ADVERTISEMENT EXP
20-Jan THE TIMES REVIEW $         410.00
TRAIL BALANCE
PARTICULARS DEBIT CREDIT
CAPITAL ACCOUNT $   22,000.00
CASH $             9,915.00
TRUCK $             8,500.00
PREPAID INSURANCE $             1,650.00
TOOLS $             7,375.00
SEARS ACCOUNT $      7,500.00
OFFICE EQUIPMENT $             4,915.00
BENS COMPUTER $      2,500.00
CLOSING INVENTORY $                250.00
SERVICE INCOME $   10,175.00
DEBTORS $             5,000.00
TELEPHONE EXPENSES $                420.00
OFFICE MART $         400.00
UTILITY $                600.00
SALARY $             2,000.00
ADVERTISEMENT $                410.00
TIMES REVIEW $         410.00
INSURANCE $                150.00
MAINTANANCE $                   90.00
DEPRECIATION $                210.00
SUPPLIES EXPENSES $             1,500.00
$          42,985.00 $   42,985.00
INCOME STATENT
PARTICLARS AMOUNT PARTICLUARS AMOUNT
TELEPHONE EXPENSES $        420.00 SERVICE INCOME $ 10,175.00
UTILITY $        600.00
SALARY $    2,000.00
ADVERTISEMENT $        410.00
INSURANCE $        150.00
MAINTANANCE $          90.00
DEPRECIATION $        210.00
SUPPLIES EXPENSES $    1,500.00
NET PROFIT $    4,795.00
$ 10,175.00 $ 10,175.00
BALANCE SHEET
LIABILITIES AMOUNT ASSETS AMOUNT
CAPITAL ACCOUNT $ 22,000.00 CASH $    9,915.00
FIXED ASSETS
REAINED EARNINGS $    4,795.00 TRUCK $    8,500.00
TRADE PAYABLES TOOLS $    7,375.00
SEARS ACCOUNT $    7,500.00 OFFICE EQUIPMENT $    4,915.00
BENS COMPUTER $    2,500.00 CLOSING INVENTORY $        250.00
OFFICE MART $        400.00 DEBTORS $    5,000.00
TIMES REVIEW $        410.00 PREPAID INSURANCE $    1,650.00
$ 37,605.00 $ 37,605.00

Related Solutions

What concepts have you learned in managerial accounting course? Specifically, how can you use these concepts...
What concepts have you learned in managerial accounting course? Specifically, how can you use these concepts in future courses and in your career?
Hello! I have a question regarding accounting 101 for a group project, I need to find...
Hello! I have a question regarding accounting 101 for a group project, I need to find the financial statements for JcPenney for the fiscal year of 2019. So far, when I look up the financial statements for 2019, all I seem to find are NON-GAAP financial reports for the company's fiscal year of 2019. I need GAAP financial reports for JcPenny and the statements I need are: Income statement, Statement of stockholders' equity, balance sheet, and statement of cash flow....
What concepts have you learned in this managerial accounting course? Specifically, how can you use these...
What concepts have you learned in this managerial accounting course? Specifically, how can you use these concepts in future courses and in your career?
Explain how can project quality will be managed?. How can we use quality planning, quality assurance,...
Explain how can project quality will be managed?. How can we use quality planning, quality assurance, quality control, and continuous improvement? What system will be used to ensure quality and continuous improvement throughout the project? Discuss how you will manage project risk for your project. What exactly can be done to reduce risk? How can risk be controlled? Explain why do some of the projects fail? Specific things that can be done to reduce project failure rates?
Demand Estimation Project Fred’s Accounting & Tax services is new but a locally well-known accounting firm...
Demand Estimation Project Fred’s Accounting & Tax services is new but a locally well-known accounting firm in San Angelo, TX that completes TAX returns for individuals. Every year firms like Fred’s decide how much to charge to complete an individual return. The price determines how many tax returns firms complete each year. Suppose you are the NEW OFFICE manager at Fred’s who is tasked to determine what your office should charge next year for tax returns. Since this is all...
Show the effect of the following transactions of Avis Services on the accounting equation. Use “+”...
Show the effect of the following transactions of Avis Services on the accounting equation. Use “+” to denote an increase, “–” to denote a decrease and “0” to denote no change to the elements of the equation. Copy the table in your answer book and follow the example given. The business uses the periodic inventory system. ■ Assume that the bank balance is favourable at all times. Example: Paid the insurance premium by cheque, R500 ASSETS EQUITY LIABILITIES No. Equipment...
You are requested to use your assumed business to prepare an accounting cycle project which include...
You are requested to use your assumed business to prepare an accounting cycle project which include the 9 steps with transactions and workings i want all steps of accounting cycles with assumed business transactions with working step 1 till step 9
The AMS technical services department has embarked on a quality improvement effort. Its first project relates...
The AMS technical services department has embarked on a quality improvement effort. Its first project relates to maintaining the target upload speed for its Internet service subscribers. Upload speeds are measured on a standard scale which the target value is 1.0. Data collected over the past year indicate that the upload speed is approximately normally distributed, with a mean of 1.005 and a standard deviation of 0.10. Each day, one upload speed is measured. The upload speed is considered acceptable...
1. The employees of Mauve Accounting Services are permitted to use the copy machine for personal...
1. The employees of Mauve Accounting Services are permitted to use the copy machine for personal purposes, provided the privilege is not abused. Ed, an employee of Mauve, is also the president of a civic organization and uses the copier to make several copies of the organization’s agenda for its meetings. The copies made during the year would have cost $150 at a local office supply. a. Ed must include $150 in his gross income. b. Ed may exclude the...
basic accounting course: QUESTION 4: Accounting Concepts (10 marks) You are employed as a graduate accountant...
basic accounting course: QUESTION 4: Accounting Concepts You are employed as a graduate accountant in a mid-tier accounting firm.  One of the partners has asked you to review the following cases where a client has violated at least one of the assumptions, concepts or definitions you studied at university.  The partner has asked for a written report in your own words (using references where appropriate), to please explain: a)which concept or assumption has been violated, and; b)what the correct treatment should be....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT