SOS Please please please help on this problem!!!!!!!!!!!!!!!!!!!!!! .pdf
- 1. SOS Please please please help on this problem!!!!!!!!!!!!!!!!!!!!!! :) Closing Entries and the Postclosing Trial Balance 192 CHAPTER 6 Mini-Practice Set 1 Service Business Accounting Cycle Eli's Consulting Services ing principles and This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Eli's Consulting Services for the month o January 2020. Assume that you are the chief accountant for Eli's Consulting Services, During January, the busi ness will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Eli's Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January. INTRODUCTION Eli's Consulting Services Chart of Accounts Revenue 401 Fees Income Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated Depreciation Equipment Liabilities 202 Accounts Payable Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation Expense-Equipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone Expense 535 Insurance Expense Owner's Equity 301 Trayton Eli, Capital 302 Trayton Eli, Drawing 309 Income Summary INSTRUCTIONS 1. Open the general ledger accounts and enter the balances for January 1, 2020. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 2019, which appears in Figure 6.3. 2. Analyze each transaction and record it in the general journal. Use page 3 to begin January's transactions. 3. Post the transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet. 5. Prepare the Adjustments section of the worksheet. a. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. b. Compute and record the adjustment for expired insurance for the month. c. Record the adjustment for one month of expired rent of $4,000. d. Record the adjustment for depreciation of $183 on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February, 6. Complete the worksheet. 7. Prepare an income statement for the month. 8. Prepare a statement of owner's equity. Solution Journal Entries Date Account Title Debit Credit
- 2. 2-Jan Supplies 7000 Cash 7000 7-Jan Cash 20000 Accounts receivable 5000 Fees Income 25000 2-Jan Insurance expense 8400 Cash 8400 12-Jan Cash 4000 Accounts receivable 4000 Advertising expense 3600 Cash 3600 Cash 20700 Accounts receivable 2300 Fees Income 23000 13-Jan Cash 4500 Accounts receivable
- 3. 4500 14-Jan Cash 750 Supplies 750 20-Jan Supplies 5000 Accounts Payable 5000 20-Jan Cash 12500 Accounts receivable 3500 Fees Income 16000 20-Jan Cash 5600 Accounts receivable 5600 21-Jan Maintenance expense 7065 Cash 7065 22-Jan Advertising expense 3600 Cash 3600 23-Jan Telephone expense 1025
- 4. Cash 1025 26-Jan Cash 1600 Accounts Receivables 1600 27-Jan Account payable 3000 Cash 3000 28-Jan Utilities Expense 2675 Cash 2675 29-Jan Cash 19000 Accounts receivable 2750 Fees Income 21750 31-Jan Salaries expense 32800 Cash 32800 Trayton Eli,Drawings 12000 Cash 12000 Maintenance expense 4150 Cash
- 5. 4150 Equipment 15000 Cash 10000 Account payable 5000 Cash 7600 Accounts Receiavble 1620 Fees Income 9220 Adjusting Entries Supplies expense 6050 Supplies 6050 (7000+5000-750-5200) Prepaid Insurance 7700 Insurance Expense 7700 8400-(8400/12) Rent expense 4000 Accounts payable 4000 Depreciation expense 183 Accumulated depreciation-Equipment 183 234668 234668 NET LEDGER BALANCE LEDGER ACCOUNTS
- 6. Debit Credit Debit Credit 27-Jan Account payable 3000 31-Jan Account payable 5000 20-Jan Accounts Payable 5000 31-Jan Accounts payable 4000 11000 31-Jan Accounts Receiavble 1620 7-Jan Accounts receivable 5000 12-Jan Accounts receivable 4000 12-Jan Accounts receivable 2300 13-Jan Accounts receivable 4500 20-Jan Accounts receivable 3500 20-Jan
- 7. Accounts receivable 5600 29-Jan Accounts receivable 2750 26-Jan Accounts Receivables 1600 -530 31-Jan Accumulated depreciation-Equipment 183 183 12-Jan Advertising expense 3600 22-Jan Advertising expense 3600 7200 2-Jan Cash 7000 7-Jan Cash 20000 2-Jan Cash 8400 12-Jan Cash 4000 12-Jan Cash 3600 12-Jan
- 9. Cash 32800 31-Jan Cash 12000 31-Jan Cash 4150 31-Jan Cash 10000 31-Jan Cash 7600 935 31-Jan Depreciation expense 183 183 31-Jan Equipment 15000 15000 7-Jan Fees Income 25000 12-Jan Fees Income 23000 20-Jan Fees Income 16000 29-Jan Fees Income 21750 31-Jan
- 10. Fees Income 9220 94970 2-Jan Insurance expense 8400 31-Jan Insurance Expense 7700 700 21-Jan Maintenance expense 7065 31-Jan Maintenance expense 4150 11215 31-Jan Prepaid Insurance 7700 7700 31-Jan Rent expense 4000 4000 31-Jan Salaries expense 32800 32800 2-Jan Supplies 7000 14-Jan Supplies 750 20-Jan
- 11. Supplies 5000 31-Jan Supplies 6050 5200 31-Jan Supplies expense 6050 6050 23-Jan Telephone expense 1025 1025 31-Jan Trayton Eli,Drawings 12000 12000 28-Jan Utilities Expense 2675 2675 234668 234668 106153 106153 Trial balance Debit Credit Cash 935 Accounts Receiavble 530 Prepaid Insurance 7700 Supplies
- 12. 5200 Account payable 11000 Equipment 15000 Accumulated depreciation-Equipment 183 Trayton Eli,Drawings 12000 Fees Income 94970 Advertising expense 7200 Depreciation expense 183 Insurance expense 700 Maintenance expense 11215 Rent expense 4000 Salaries expense 32800 Supplies expense 6050 Telephone expense 1025 Utilities Expense 2675 106683 106683 Income statement Fees Income 94970 Less: Operating expenses: Advertising expense
- 13. 7200 Depreciation expense 183 Insurance expense 700 Maintenance expense 11215 Rent expense 4000 Salaries expense 32800 Supplies expense 6050 Telephone expense 1025 Utilities Expense 2675 65848 Operating Income 29122 Balance sheet Current assets Cash 935 Accounts Receiavble -530 Prepaid Insurance 7700 Supplies 5200 13305 Fixed assets Equipment 15000 Less: Accumulated depreciation-Equipment 183
- 14. 14817 Total assets 28122 Liabilities & Equity Current laibilities Accounts payable 11000 Equity Opg.income 29122 Less: Trayton Eli,Drawings -12000 17122 Total Liabilities & Equity 28122 Statement of Owner's Equity Current year Operating income 29122 Less: Trayton Eli,Drawings -12000 Net Equity balance 17122 Journal Entries Date Account Title Debit Credit 2-Jan Supplies 7000 Cash 7000 7-Jan Cash 20000 Accounts receivable
- 15. 5000 Fees Income 25000 2-Jan Insurance expense 8400 Cash 8400 12-Jan Cash 4000 Accounts receivable 4000 Advertising expense 3600 Cash 3600 Cash 20700 Accounts receivable 2300 Fees Income 23000 13-Jan Cash 4500 Accounts receivable 4500 14-Jan Cash 750 Supplies 750 20-Jan Supplies 5000
- 16. Accounts Payable 5000 20-Jan Cash 12500 Accounts receivable 3500 Fees Income 16000 20-Jan Cash 5600 Accounts receivable 5600 21-Jan Maintenance expense 7065 Cash 7065 22-Jan Advertising expense 3600 Cash 3600 23-Jan Telephone expense 1025 Cash 1025 26-Jan Cash 1600 Accounts Receivables 1600 27-Jan Account payable
- 17. 3000 Cash 3000 28-Jan Utilities Expense 2675 Cash 2675 29-Jan Cash 19000 Accounts receivable 2750 Fees Income 21750 31-Jan Salaries expense 32800 Cash 32800 Trayton Eli,Drawings 12000 Cash 12000 Maintenance expense 4150 Cash 4150 Equipment 15000 Cash 10000 Account payable 5000 Cash 7600
- 18. Accounts Receiavble 1620 Fees Income 9220 Adjusting Entries Supplies expense 6050 Supplies 6050 (7000+5000-750-5200) Prepaid Insurance 7700 Insurance Expense 7700 8400-(8400/12) Rent expense 4000 Accounts payable 4000 Depreciation expense 183 Accumulated depreciation-Equipment 183 234668 234668