Question

Applying the Entire Accounting Cycle Rhoades Tax Services began business on December 1, 2018. Its December transactions are as follows. Dec. 1 Rhoades invested $20,000 in the business in exchange for common stock. 2 Paid $1,200 cash for December rent to Bomba Realty 2 Purchased $1,080 of supplies on account. 3 Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. 8 Paid $1,080 cash on account for supplies purchased December 2. 14 Paid $900 cash for assistant's wages for 2 weeks' work. 20 Performed consulting services for $3,000 cash. 28 Paid $900 cash for assistant's wages for 2 weeks' work. 30 Billed clients $7,200 for December consulting services. 31 Paid $1,800 cash for dividends. Required a (1). Record these transactions using the financial statement effects template. (Adjusting entries will be recorded in Part B - a (2).) Balance Sheet Income Statement Cash Noncash Contributed Earned Transaction Asset + Assets = Liabilities + Capital + Capital Revenues - Expenses = Net Income 12/1 0 $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 12/2 a 12/2 b 12/3 12/8 12/14 12/20 12/28 12/30 12/31 Totals ooooooooooo ooooooooooo

Answer 1

Rhoades Tax Service Non cash assets = Balance Sheet Liabilites + Contributed Capital 20,000 Income Statement + Earned Capital Revenues - Expenses = Net Income + (1,200) 1,200 (1,200) Rent expense 1,080 9,500 = = 1,080 + 4,800 + (1,080) + Transaction Cash + 1-Dec 20,000 + 12/2 (a) (1,200) + 12/2(b) 3-Dec (4,700) + 8-Dec (1,080) + 14-Dec (900) + 20-Dec 3,000 + 28-Dec (900) + 30-Dec 31-Dec (1,800) + Totals 12,420 + 900 + + 3,000 - 900 + (900) 3,000 (900) 7,200 (1,800) 5,400 (900) Wages expense 3,000 Service Revenue (900) Wages expense 7,200 Consulting Revenue - Dividends 7,200 7,200 = + 7,200 - + 17,780 = 4,800 + 20,000 + 10,200 - 3,000 =

Rhoades Tax Service Journal entries Date Account 1-Dec Cash Common Stock Debit $ 20,000 $ 20,000 12/2 (a) $ 1,200 Rent Expense Cash $ 1,200 12/2(b) $ 1,080 Supplies Accounts Payable $ 1,080 $ 9,500 3-Dec Office Equipment Cash Accounts Payable $ $ 4,700 4,800 $ 1,080 8-Dec Accounts Payable Cash $ 1,080 $ 900 14-Dec Wages Expense Cash $ 900 $ 3,000 20-Dec Cash Consulting Revenue $ 3,000 $ 900 28-Dec Wages Expense Cash $ 900 $ 7,200 30-Dec Fees Receivable Consulting Revenue $ 7,200 $ 1,800 31-Dec Retained Earnings Cash $ 1,800

Credit Credit Date Debit Date Fees Receivable 30-Dec $ 7,200 Date Debit Date Supplies 2-Dec $ 1,080 Date Debit Date Credit Office Equipment 3-Dec $ 9,500 Rhoades Tax Service T Accounts Date Debit Date Credit Cash 1-Dec $ 20,000 2-Dec $ 1,200 20-Dec $ 3,000 3-Dec $ 4,700 8-Dec $ 1,080 14-Dec $ 900 28-Dec $ 900 31-Dec $ 1,800 Unadj Bal. $ 9,500 Unadj Bal. $ 12,420 Accounts Payable 8-Dec $ 1,080 2-Dec $ 1,080 3-Dec $ 4,800 Unadj Bal. $ 7,200 Common Stock 1-Dec $ 20,000 Unadj Bal. $ 1,080 Retained Earnings 31-Dec $ 1,800 Unadj Bal. $ 4,800 Comsulting Service Revenue 20-Dec $ 3,000 30-Dec $ 7,200 Unadj Bal. $ 20,000 Wages expense 14-Dec $ 900 28-Dec $ 900 Unadj Bal. $ 1,800 Rent expense 2-Dec $ 1,200 Unadj Bal. $ 10,200 Unadj Bal. $ 1,800 Unadj Bal. $ 1,200

Rhoades Tax Service Account Cash Fees Receivable Supplies Office Equipment Accounts Payable Common Stock Retained Earnings Consulting Revenue Rent Expense Wages Expense Totals UnAdjusted TB Debit Credit 12,420 7,200 1,080 9,500 4,800 20,000 1,800 10,200 1,200 1,800 35,000 35,000