Question

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  $8500  in a bank account in the name of the company in exchange for

850 shares of  $10  per share common stock.

1-Dec

Paid the rent for the current month, $750 .

1-Dec

Paid the premium on a one-year insurance policy,  $1080 .

1-Dec

Purchased Equipment for $4800 cash.

5-Dec

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

15-Dec

Provided services to customers for $6400  cash.

16-Dec

Provided service to customers ABC Inc. on account, $4000 .

21-Dec

Received  $2000 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,  $4480 .

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 $90.

31-Dec

The remaining inventory of unused office supplies is $90.

31-Dec

The estimated depreciation on equipment is  $80.

31-Dec

Wages incurred from December 29 to December 31 but not yet paid or recorded total $480.

#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

$ 13,220.00

Answer 1

Journal Entries
01-Dec	Cash	Dr	8000
	To Common Stock			8000
	(Being 800 Common stock issued for $10 per Share)
01-Dec	Rent Expense	Dr	700
	To Cash			700
	(Being Rent Paid for current month)
01-Dec	Insurance Expense	Dr	80
	Prepaid Insurance	Dr	880
	To Cash			960
	(Being Cash paid for insurance and prepaid expense booked)
01-Dec	Equipment	Dr	4200
	To Cash			4200
	(being equipment purchased)
05-Dec	Supplies Expense		300
	To Cash			300
	(Being supplies purchased)
15-Dec	Cash	Dr	16200
	To Services Revenue			16200
	(being services provided)
16-Dec	Accounts receivable	Dr	3700
	To Services Revenue			3700
	(being services provided)
21-Dec	Cash	Dr	1900
	To Accounts Receivable			1900
	(being cash received)
23-Dec	Supplies Expense	Dr	1700
	To cash			1700
	(being cash paid for supplies)
28-Dec	Wage expense	Dr.	4200
	To cash			4200
	(being cash paid for wages)
30-Dec	Dividend	Dr	200
	To Cash			200
	(being cash paid for dividends)

Cash Particulars To Common Stock lo Services Revenue To Accounts Receivable Particulars 8000 Rent Expense 700 80 880 4200 300 1700 4200 200 13840 26100 16200Insurance Expense 1900 Prepaid Insurance Equipment Supplies Expense Supplies Expense Wage expense Dividend Balance Total 26100 Total Common Stock Particulars Balance Particulars 8000 Cash 8000 Rent Expense Particulars Cash Particulars 700 Transfer to income statement 700 Insurance Expnes Particulars Cash Particulars 80 Transfer to income statement 80 Prepaid Insurance Expnes Particulars Cash Particulars 8801 Balance c/f 880

Equipment Particulars Cash Particulars 4200 Balance C/f 4200 Supplies Expense Particulars Cash Cash Particulars 300 Transfer to income statement 1700 2000 Service Revenue Particulars Transfer to income statement Particulars 19900 Cash Cash 16200 3700 Account Receivable Particulars Particulars Service Revenue 3700 Cash 1900 1800 Balance WageExpense Particulars Cash Particulars 4200 Transfer to income statement 4200 Dividend Particulars Cash Particulars 200 Transfer to Retained earning 200

Trial Balance Particulars Cash Common Stock Rent Expense Insurance Expnes Prepaid Insurance Expnes Equipment Supplies Expense Service Revenue Account Receivable WageExpense Dividend Net Income 13840 8000 700 80 880 4200 2000 19900 1800 4200 200 14520

Answer 2

#10

answer:

journal entries to record the December:

date	account title and explanation	debit	credit
dec1	cash	$9,500
	common stock		$9,500
	(to record issue of common stock)
Dec 1	rent expense	$850
	cash		$850
dec1	prepaid insurance	$1320
	cash		$1320
dec 1	equipment	$4200
	cash		$4200
dec 5	office supplies	, $300
	account payable		, $300
dec 15	cash	$6800
	service revenue		$6800