Question

QUESTION 1 Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.

1-Dec Began business by depositing $10000 in a bank account in the name of the company in exchange for 1000 shares of $10 per share common stock.

1-Dec Paid the rent for the current month, $1400 .

1-Dec Paid the premium on a one-year insurance policy, $1200 .

1-Dec Purchased Equipment for $3600 cash.

5-Dec Purchased office supplies from XYZ Company on account, $300 .

15-Dec Provided services to customers for $9000 cash.

16-Dec Provided service to customers ABC Inc. on account, $7900 .

21-Dec Received $3300 cash from ABC Inc., customer on account.

23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 .

28-Dec Paid wages for the period December 1 through December 28, $4760 .

30-Dec Declared and paid dividend to stockholders $200 .

#2. Post all of the December transactions from the “General Journal” tab to the T-accounts under the “T-Accounts” tab in the excel template file "Accounting Cycle Excel Template.xlsx".

Assume there are no beginning balances in any of the accounts.

#3. Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31.

#4. Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the total of the credit column from the Unadjusted Trial Balance #5.

Record the following four transactions as adjusting entries under the “General Journal” tab. 31-Dec One month’s insurance has been used by the company $100. 31-Dec The remaining inventory of unused office supplies is $90. 31-Dec The estimated depreciation on equipment is $60. 31-Dec Wages incurred from December 29 to December 31 but not yet paid or recorded total $510. #6. Post all of the adjusting entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31. #7. Prepare the adjusted trial balance under the “Adjusted Trial Balance” tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the following accounts balances from the Adjusted Trial Balance: Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings #8. Prepare Income Statement, Statement of Stockholder’s Equity, and Classified Balance Sheet under the “Financial Statements” tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx". Provide the following amount from the Income Statement: Service Revenue Depreciation Expense Wages Expense Supplies Expense Rent Expense Insurance Expense Net Income Provide the following account balance from the Statement of Stockholders' Equity: Dividends Provide the following account balances from the Balance Sheet: Current Assets Long-Term Assets Total Liabilities Total Stockholder’s Equity Cash #9. Record the closing entries under the “General Journal” tab. #10. Post all of the closing entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted. Provide the ending balance of Cash at December 31 from the T-account Provide the balance of the Retained Earnings T-account after closing entries have been posted. Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet?

Check Point: Total Assets $ 20,300.00

Answer 1

Journal entries Req1 Date Account 1-Dec Cash Common Stock Credit Calculation Debit $ 10,000 $ 10,000 $ 1,400 1-Dec Rent expense Cash $ 1,400 $ 1,200 1-Dec Prepaid Insurance Cash $ 1,200 $ 3,600 1-Dec Equipment Cash $ 3,600 $ 300 5-Dec Supplies Accounts Payable $ 300 $ 9,000 15-Dec Cash Service Revenue $ 9,000 $ 7,900 16-Dec Accounts Receivable Service Revenue $ 7,900 $ 3,300 21-Dec Cash Accounts Receivable $ 3,300 $ 170 23-Dec Accounts Payable Cash $ 170 $ 4,760 28-Dec Wages expense Cash $ 4,760 $ 200 $ 200 30-Dec Dividends Cash Req5 Adjusting entries 31-Dec Insurance expense Prepaid Insurance $ 100 $ 100 $ 210 =300-90 31-Dec Supplies expense Supplies $ 210 $ 60 31-Dec Depreciation expense Accumulated Depreciation $ 60 $ 510 $ 510 31-Dec Wages expense Wages Payable Req9 Closing entries 31-Dec Service Revenue Income Summary $ 16,900 $ 16,900 $ 7,040 31-Dec Income Summary Depreciation expense Wages expense Supplies expense Rent expense Insurance expense $ $ $ $ $ 60 5,270 210 1,400 100 $ 9,860 31-Dec Income Summary Retained Earnings $ 9,860 $ 200 31-Dec Retained Earnings Dividends $ 200

Date Date Date Debit Date Credit Accounts Receivable 16-Dec $ 7,900 21-Dec $ 3,300 5-Dec Reg 2, 3, 6 & 10 T Accounts Date Debit Date Credit Cash 1-Dec $10,000 1-Dec $ 1,400 15-Dec $ 9,000 1-Dec $ 1,200 21-Dec $ 3,300 1-Dec $ 3,600 23-Dec $ 170 28-Dec $ 4,760 30-Dec $ 200 Debit Date Credit Supplies $ 300 31-Dec $ 210 Debit Date Credit Prepaid Insurance $ 1,200 31-Dec $ 100 1-Dec Bal. Bal. $ 10,970 Equipment $3,600 $ 4,600 Accumulated Depreciation 31-Dec $ Bal. $ 90 Accounts Payable 23-Dec $ 170 5-Dec $ 1,100 Wages Payable 31-Dec $ 1-Dec 60 $ 300 510 Bal. 130 $ 3,600 Common Stock 1-Dec Bal. $ 60 Retained Earnings 31-Dec $ 200 31-Dec $ 9,860 Bal. $ Dividends 200 31-Dec $ Bal. $ 510 Income Summary 31-Dec $ 7,040 31-Dec $ 16,900 31-Dec $ 9,860 $10,000 30-Dec $ 200 Bal. $ 10,000 Service Revenue 15-Dec $ 9,000 31-Dec $ 16,900 16-Dec $ 7,900 Bal. $ Depreciation expense 31-Dec $ 60 31-Dec $ 9,660 Bal. $ . Wages expense 28-Dec $ 4,760 60 31-Dec $ 510 31-Dec $ 5,270 Bal. $ Supplies expense 31-Dec $ 210 31-Dec $ 210 - Bal. S - Bal. Bal. $ Rent expense $ 1,400 31-Dec $ Bal. $ . Insurance expense 31-Dec $ 100 31-Dec $ 1-Dec 1,400 100 Bal. $ Bal. $ .

Req7 Adjusted TB Debit Credit 10,970 Req4 Unadjusted TB Debit Credit 10,970 4,600 300 1,200 3,600 4,600 90 1,100 3,600 130 130 510 Company Account Names Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings Dividends Service Revenue Depreciation expense Wages expense Supplies expense Rent expense Insurance expense Totals Check 10,000 10,000 200 200 16,900 16,900 60 4,760 5,270 1,400 210 1,400 100 27,600 27,030 27,030 27,600 Req4 Total of credit column from Unadjusted Trial Balance 27,030

16,900 Income Statement For the Month Ended Dec 31, 20XX Service Revenue Expenses Depreciation expense Wages expense Supplies expense Rent expense Insurance expense Total Expenses Net Income 60 5,270 210 1,400 100 7,040 9,860

Statement of Stockholders Equity For the Month Ended Dec 31, 20XX Common Stock Retained Earnings Total Equity Balance on Dec 1, 20XX Issue of new shares 10,000 10,000 Net Income 9,860 9,860 Dividends (200) (200) Balance on Dec 31, 20XX 10,000 9,660 19,660 Ending cash balance from T Retained Earnings balance from T Does RE from T match with BS? 10,970 9,660 Yes

Balance Sheet As of Dec 31, 20XX Assets Current Assets Cash Accounts Receivable Supplies Prepaid Insurance Total Current Assets Liabilities & Stockholders Equity Liabilities 10,970 Accounts Payable 4,600 Wages Payable 90 1,100 16,760 Total Liabilities 130 510 640 Long-term Assets Equipment Accumulated Depreciation Total Long-term Assets Stockholders Equity 3,600 Common Stock (60) Retained earnings 3,540 Total Stockholders Equity 10,000 9,660 19,660 Total Assets 20,300 Total Liabilities & Stockholders Equity 20,300