Question

Problem Section: Complete the accounting cycle for the period January 1 to February 28, 2018. We Do Taxes Company started operations as of January 1, 2018 and set up a small office in Edison to prepare tax returns and perform accounting services. Use the information to follow to journalize each transaction on the Journal Sheet Jan 1 Contributed the following assets for common stock. Cash, $15,000; accounts receivable, $1,000; Supplies, $2,000; and office equipment, $12,000. There were no liabilities contributed Jan 1 Paid six months rent on a lease rental contract, $5,400. Jan 3 Paid premiums on property and casualty insurance policies for the year, $1,800. Jan 5 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $6,000. Jan 10 Received cash from clients on account $500. Jan 20 paid cash for advertising in a local newspaper, $350. Jan 21 Purchased a new computer and other office equipment on account from Staples, $3,500. Jan 21 Paid part-time receptionist for two weeks' salary, $1,000. Jan 29 Recorded services provided on account for the period Jan 1-28, $10,300. Jan 30 Received cash from clients for fees earned during period, Jan 1-20, $5,000. Jan 31 Paid Staples for part of the debt incurred on Jan 21, $1,500 Feb 3 Paid part-time receptionist for two weeks' salary, $1,000. Feb 4 Paid cash for supplies, $800. Feb 6 Received cash from clients on account $4,500. Feb 8 Paid for January month of telephone bill, $150. Feb 8 Pair for January month of utilities, $500. Feb 17 Paid part-time receptionist for two weeks' salary, $1,000. Feb 28 Recorded services provided on account for the period Feb 1-28, $8,500. Feb 28 Recorded cash from cash clients for fees earned for the period Feb 1-28, $4,500. Feb 28 Paid dividends, $8,000.

Answer 1

Jocanal Date Jan 1 Description & cash Post reb Sordo Accounorecievance Supplies Dolce 15,500 000 2000 12.00 office equipment To capital (being amount contrbuced) Jan/ 5,400 Rent To cash (being ant 5,400 paid an Rant) Jan 3 1,800 poperty and Insurance policies (prepad To cash (being courance on propesty and castelte paio 1867 Jan 5 Uncarnadyees Cash To Advance fromc/unearned they caverce va fees 6,000 Jan Jo 500 cash TO Alcorent recevable they ant ree 503 Jan 20 350 358 Jana f 3,500 I Advertising Exp TO cash (being ant paid for adventist gtaples office Equipment che to staples credit) Salary al To cash Cheip 2 weeks salary paed 3,500 Jax2 f 1600

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Jocanal Date Jan 1 Description & cash Post reb Sordo Accounorecievance Supplies Dolce 15,500 000 2000 12.00 office equipment To capital (being amount contrbuced) Jan/ 5,400 Rent To cash (being ant 5,400 paid an Rant) Jan 3 1,800 poperty and Insurance policies (prepad To cash (being courance on propesty and castelte paio 1867 Jan 5 Uncarnadyees Cash To Advance fromc/unearned they caverce va fees 6,000 Jan Jo 500 cash TO Alcorent recevable they ant ree 503 Jan 20 350 358 Jana f 3,500 I Advertising Exp TO cash (being ant paid for adventist gtaples office Equipment che to staples credit) Salary al To cash Cheip 2 weeks salary paed 3,500 Jax2 f 1600