Question

Complete Accounting Cycle

Part 1

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond Consulting entered into the following transactions during July:

Jul.	1	The following assets were received from Steffy Lopez in exchange for common stock: cash, $13,500; accounts receivable, $20,800; supplies, $3,200; and office equipment, $7,500. There were no liabilities received.
	1	Paid two months’ rent on a lease rental contract, $4,800.
	2	Paid the annual premiums on property and casualty insurance policies, $4,500.
	4	Received cash from clients as an advance payment for services to be provided, and recorded it as unearned fees, $5,500.
	5	Purchased additional office equipment on account from Office Station Co., $6,500.
	6	Received cash from clients on account, $15,300.
	10	Paid cash for a newspaper advertisement, $400.
	12	Paid Office Station Co. for part of the debt incurred on July 5, $5,200.
	12	Recorded services provided on account for the period July 1–12, $13,300.
	14	Paid receptionist for two weeks’ salary, $1,750.

Record the following transactions on Page 2 of the journal:

Jul.	17	Recorded cash from cash clients for fees earned during the period July 1–17, $9,450.
	18	Paid cash for supplies, $600.
	20	Recorded services provided on account for the period July 13–20, $6,650.
	24	Recorded cash from cash clients for fees earned for the period July 17–24, $4,000.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks’ salary, $1,750.
	29	Paid telephone bill for July, $325.
	31	Paid electricity bill for July, $675.
	31	Recorded cash from cash clients for fees earned for the period July 25–31, $5,200.
	31	Recorded services provided on account for the remainder of July, $3,000.
	31	Paid dividends, $12,500.

	Required:
1.	Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
2.	A. Post the journal to a ledger of four-column accounts.
3.	Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank.
4.	At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). A. Insurance expired during July is $375. B. Supplies on hand on July 31 are $1,525. C. Depreciation of office equipment for July is $750. D. Accrued receptionist salary on July 31 is $175. E. Rent expired during July is $2,400. F. Unearned fees on July 31 are $2,750.

Complete accounting sycie, Part 1 Instructions Chart of Accounts Journal Ledger Unadjusted Trial Balance Instructions For the past several years. Shetty Lope has perteda pastime consulting business from his home. As of July 1, 2016. Swe and to operate the business, which was to be known as Diamond Consulting, on a time basis. Diamond Consulting and during et the following transactions u 1 2 The followings were received from Soy Lopez in exchange for common stock cash $13.500 accounts receivable 520.000 supplies 1.200, and attice equipment. $7.500. There were nobis received Paid two months rent on a lease rental contract. 54,800 Paid the annual premiums on property and casual insurance policies, su Received cash from clients as an advance payment for services to be provided and recorded it as neared to $5.500 Purchased additional office equipment on our Office Station Co. 56.500 Received from conson con $15.300 Pad cash for a newspaper advertisement. 5400 Paid One Swiono for part of the incurred on July 5.5.200 Recorded services provided on account for the period y 1-12.513.300 Paid reception for two weeks 51.750 5 6 10 12 12 14 Record the following a n Page of the journal 17 18 20 24 25 27 29 31 31 31 3 Recorded cash from the clients for frescared during the period July 1-17. $9.450 Pad cash for aplies 5600 Recorded services provided on account for the period July 13-20. 6.650 Recorded cash from cash clients for reseamed for the period July 17-22. 54.000 Received cash from the on , $12.000 Paid receptionist for two weeks'salary: $1750 Paid telephone for July $125 Paid electricity bill for July, 5675 Recorded cash from calents for reseamed for the period 25-31.5.200 Recorded services provided on account for the remainder of July $3.000 Padded $12.500 Required 1. bumale each transaction in a journal artigon Papetering to the chart of account i ng the account to be and credited (Donate the under in the jumalath me.) 2. A Poet the journal a rauc amount • Download the spreadsheet in the Ledgerpanel and save the Excello to your computer. Use the r ise to post they transactions from the journal taler of our com account Beureto save your work in a wi n d to complete the following step in Part 1 of problem as well as in Part 2 prem inu b e included in your recog OW on this problem B. Add the appropriate posting t o main CengapeNOW. 3. Prepare and balance an amount bow does not require an entry 4. At the end of the following users te wees . Any and se c u rements and A Insurance expired during July is $375 B Supplies on and only 31 are $1.525 Depreciation of office equipment for Jy is $750 D. Acred recept y on July 31 $175 E. Resepi $2,400 F. Uneamed fees only 31 are $2.7150 5. Oona On your own per presenter the w o ndered worksheet and comment Find a blank enchor period worksheet in the Excel spreadsheet you previously downloaded

Part 2

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2018, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond Consulting entered into transactions during July. In Part 1 of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance.

Required:

8.

A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.

B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, enter "0".

C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2018. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons (:) on the balance sheet; they will automatically insert where necessary. Negative amount should be indicated by the minus sign.

9.

A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. Refer to the Chart of Accounts for exact wording of account titles.

B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference

Prepare a post-closing trial balance.

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Calibri - 11 - AA BI U DA Autosum * Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells 120 А - fi н к Date Amount(CR) Diamond Consulting Journal Entries July 31st 2018 Particular 01-Jul-18 Cash Accounts Recivable Supplies Office Equipment To Steffy Lopez Capital (Being amount of Assets recived in exchange of common stock) 01-Jul-18 Prepaid Rent To Cash (Being amount paid in advance for two months lease rent) Amount (DR) 13,500.00 $ 20,800.00 $ 3,200.00 $ 7,500.00 $ 45,000.00 $ 4,800.00 $ 4,800.00 $ 4,500.00 $ 4,500.00 02-Jul-18 Prepaid Insurance To Cash (Being amount of premium paid on casualty Insurance in advance) $ 5,500.00 20 04-Jul-18 Cash To Unearned Fees |(Being Amount of fees received in $ 5,500.00 Sheet1 Sheet2 Sheet3 Select destination and press ENTER or choose Paste 0 90 OPA 100% ENG 10:30a 13-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General LE Paste Format Painter Clipboard Calibri - 11 - AA BI U DA - Wrap Text Merge & Center 1 1 Conditional Format - 3 insert Delete Format Autosum * clear ce Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells L20 A fic н к $ 5,500.00 с 04-Jul-18 Cash To Unearned Fees (Being Amount of fees received in advance from client) $ 5,500.00 500.00 05-Jul-18 Office Equipment To Office Station Company (Being amount of Equipment purchased on credit) $ 6,500.00 $ 15,300.00 15,300.00 06-Jul-18 Cash To Accounts Receivable (Being amount of Cash received from client) $ 400.00 $ 400.00 10-Jul-18 Advertisement To Cash (Being amount paid for newspaper advertisement) $ 5,200.00 $ 5,200.00 12-Jul-18 Office Station Company To Cash (Being amount paid to office station company) 38 Sheet1 Sheet2 Sheet3 Ready + OD OPA 100% - ENG u 10:30 13-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U DA Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells L20 A fic н к $ 13,300.00 $ 13,300.00 12-Jul-18 Accounts Receivable To Fees Earned (Being Amount of Services provided on account) $ 1,750.00 $ 1,750.00 14-Jul-18 Salary To Cash (Being amount of two weeks salary paid to receptionist) 9,450.00 17-Jul-18 Cash To Fees Earned (Being amount of fees received) $ 9,450.00 $ 600.00 18-Jul-18 Supplies To Cash $ 600.00 (Being amount of supplies paid in cash) $ 6,650.00 20-Jul-18 Accounts Receivable To Fees Earned (Being amount of fees earned) $ 6,650.00 24-Jul-18 Cash 4,000.00 Sheet1 Sheet2 Sheet3 HE Ready 90 OPA 100% - ENG 0 10:30 13-02-2020

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U DA Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells 120 - fic А C F G H I J K $ 4,000.00 24-Jul-18 Cash To Fees Earned (Being amount of Fees Earned) $ 4,000.00 $ 12,000.00 $ 12,000.00 26-Jul-18 Cash To Accounts Receivable (Being Amount of Cash received from client) $ 1,750.00 $ 1,750.00 27-Jul-18 Salary To Cash (Being amount of two weeks salary paid to receptionist) $ 325.00 $ 325.00 29-Jul-08 Telephone Expenses To Cash (Being amount of telephone expenses paid) $ 675.00 $ 675.00 31-Jul-18 Electricity Expenses To Cash (Being amount of electricity expenses paid) Sheet1 Sheet2 Sheet3 We Ready + OD OP ^ 100% - ENG u 10:30 13-02-2020 D

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U DA Font , Conditional Format Formatting as Table Styles conditional sobre esent Cell Styles Insert Delete Format insert Delete 2 Clear 2 Sort & Find & Filter Select Editing Alignment Number Cells L20 fic А F G H I J K 78 79 $ 5,200.00 $ 5,200.00 31-Jul-18 Cash To Fees Earned (Being amount of fees received from client) 83 $ 3,000.00 $ 3,000.00 31-Jul-18 Accounts Receivable To Fees Earned (Being amount of services provided to client on account) $ 12,500.00 31-Jul-18 Dividend To Cash (Being amount of dividend paid in cash) $ 12,500.00 Cash A/C Amount Particular To Steffy Lopez Capital To Unearned Fees To Accounts Receivable To Fees Earned ITo Fees Earned Sheet1 Sheet2 Sheet3 Particular Amount 13,500.00 By Prepaid Rent $ 5,500.00 By Prepaid Insura $ 15,300.00 By Advertisement $ 9,450.00 By Accounts Payal $ 4.000.00 Bv Salary Expenses 4,800.00 4,500.00 400.00 5,200.00 1.750.00 98 99 K ™ Ready 3O + 100% - ENG 0 10:30 13-02-2020 OPA

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Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U DA Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells fax L20 А E н к 118 Supplies Expenses Amount 119 120 121 122 Particular To Steffy Lopez Capital To Cash Particular By Bal C/d Amount 3,800.00 3,200.00 600.00 $ 123 124 By Bal C/d Total $ $ 3,800.00 3,800.00 Total $ 3,800.00 127 128 129 Accounts Payable Amount Particular To Cash To Bal C/d Particular 5,200.00 By Office Equipm 1,300.00 Amount $ 6,500.00 130 $ 132 Total $ 6,500.00 Total $ 6,500.00 135 Unearned Fees Amount Particular To Bal C/d Total Particular 5,500.00 By Cash 5,500.00 Total Amount $ 5,500.00 $ 5,500.00 $ 137 138 139 140 H » Ready Fees Earned Sheet1 Sheet2 Sheet30 + BOU 100% ve OP ^ ENG 0 10:31 S 13-02-2020

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Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U DA Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells н к Credit 375.00 $ 375.00 2,275.00 $ 2,275.00 L200 ДА B 171 4) Adjusting Journal Entries 172 General Journal Debit 173 a) Insurance Expenses 174 To Prepaid Insurance (Being amount of Insurance Expired during 175 the year) 176 177 b) Supplies Expenses($3800-$1525) 178 To Supplies 179 (Being amount of Supplies Expenses) 180 181 c) Depreciation Equipment 182 To Accumulated Depreciation-Equipment (Being amount of Depreciation on Equipment) 184 Salary Account 186 To Salary Payable 187 (Being amount of Accrued Salaries) 188 189 e) Rent Account 190 To Prepaid Rent 191 (Being amount of Rent Expired during july) 192 193 f) Unearned Fees($5500-$2750) ► Sheet1 Sheet2 Sheet3 Ready 750.00 $ 750.00 183 185 d) 175.00 $ 175.00 2,400.00 $ 2,400.00 2,750.00 90 OP ^ 100% ve ENG 0 10:31 S O 13-02-2020

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