Question

This is a Calculation Assignment, not a Writing Assignment, The Scope of the Question is About Assuming a financial transaction as in the August 2020 Transaction then Analyze it be showing the impact of these transactions on the accounting, then implement the Accounting Cycle ( 9 Steps with the Calculation ) on this transaction. Assume your own Transaction Given and Coverall The business Cycle Transaction Structure for these Transactions. Cover the 9 steps in the Business Cycle. PLEASE DO COVER ALL THE 9 STEPS CORRECTLY as they are all related and I will Upvote for you

The Accounting Cycle Learning Objective 4 State the required steps in the accounting cycle. Share capital Assets=liability to R-E-b sole proprietorship, partnership, Corporation, con calle 1. Analyze business transactions 1000 Buying and selling goat Asse paying rent Ren 9. Prepare a post-closing trial bankogh balance 2. Journalize the transactions Recording the transactions in the general cournai zahook. | Equ Date/ Explanationy Past/oror. G 8. Journalize and post closing cashlors 1000 sele revenue len 1000) entries -Analyzethe dar 3. Post to ledger accounts 2- Determinate til have of accounts RG feur 7. Prepare financial statements 4. Prepare a trial balance 6. Prepare an adjusted trial balance 5. Journalize and post adjusting entries 4-1 Illustration 4-11 Steps in the accounting cycle LO
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Answer 1

:: Solution ::

1 25000 15000 4000 Transactions during August 2020 Aug. 1 Contributed cash in exchange of common stock Aug. 2 Purchase goods for cash Aug. 11 Paid salary expense Aug. 12 Sold goods for cash Aug. 30 Prepaid Paid rent Additional information 1.Salary payable 2. Rent expired 25000 5000 1000 2000 Journal for transactions 2 Date Account Debit Credit 25000) Aug. 1 25000 Cash Common stock Purchase Cash 15000 Aug. 2 15000 4000 Aug. 11 4000 25000 Aug. 12 Salary Cash Cash Sales Prepaid Rent Cash 25000 50001 Aug. 30 5000

3 3 Amount Date Aug 1 Aug. 12 Details Common stock Sales 15000 Cash Account Amount Date Details 25000 Aug.2 Purchase 25000 Aug.11 Salary Aug. 30 Prepaid Rent Aug. 31 End Bal. 50000 Total 4000 5000 26000 50000 Total Common Stock Date Details Amount Date Amount Details Cash Aug. 31 25000) 25000 End Bal. Total 25000 25000 Purchase Date Details Amount 15000 Aug. 2 Amount Date Details 15000 Aug. 31 End Bal. 15000 Total Cash Total 15000 4 Trial Balance as on 31 August 2020 (Before adjustment) Cash 26000 Common stock 25000 Purchase 15000 4000 25000 Salary expense sales Prepaid rent Total 5000 50000 50000

5 Adjusting entries Salary expense Aug. 31 Salary payable 1000 1000 Rent expense 2000 Aug. 31 prepaid Rent 2000 Date Amount Aug. 7 5000) Details Cash Salary payable Total 5000 Date Amount Salary Expense Amount Date Details 4000 Aug. 31 End Bal. 1000 5000 Total Salary payable Amount Date Details 1000 Aug. 31 Salary expense 1000 Prepaid Rent Amount Date Details 5000 Aug. 31 Rent expense End Bal. 5000 Total Details End Bal. Total Aug. 31 1000 1000 Date Amount Details Cash Aug. 30 2000 3000 Total 5000 Rent expense Date Aug. 31 Details Prepaid rent Total Amount Date Details 2000 Aug. 31 End Bal. 2000 Amount 2000 2000

6 Adjusted Trial Balance as on 31 August 2020 Cash 26000 Common stock 25000 15000 Purchase Salary sales 5000 25000 Rent expense 2000 3000 Prepaid rent Salary payable Total 1000 51000 51000 7 Income statement 25000 - 15000 10000 Sales Less Purchases Gross profit Less Operating expenses Rent expenses Salary expense Less Operating expenses Net Income 2000 5000 -7000 3000

Balance sheet Assets Cash 26000 3000 Prepaid rent Total assets 29000 1000 Liabilities Salary payable Equity Common stock Retained earnings net profit Total equity Total Liabilities and equity 25000 3000 28000 29000

Closing entries Revenue 22000 Aug. 31 Purchase 15000 2000 Rent expens Salary expense 5000 25000 Aug. 31 Sales Revenue 25000 30001 Aug. 31 |Revenue Retained earnings 3000 Date Details Revenue Amount Date Details 15000 Aug. 31 Sales 5000) Amount 25000 Aug. 31 Purchase 2000 Salary expense Rent expense Retained earnings Total 3000) 25000 25000 Date Details Sales Amount Date Details 25000 Aug. 12 Cash 25000 Amount 25000 Aug. 31 Revenue Total 25000

Date Amount Aug. 7 Details Cash Salary payable Total Salary Expense Amount Date Details 4000 Aug. 31 Revenue 1000) 5000 Total 5000 5000 Rent expense Date Amount Aug. 31 Details Prepaid rent Total 2000 2000 Details Amount Date Aug. 2 Cash Amount Date Details 2000 Aug. 31 Revenue 2000 Purchase Amount Date Details 15000 Aug. 31 Revenue 15000 Total Retained earnings Amount Date Details 3000 Aug. 31 Revenue 3000 15000 Total 15000 Date Amount Aug. 31 Details End Bal . Total 3000 3000

LO 9 25000 Post closing Trial Balance as on 31 August 2020 Cash 26000 Common stock Prepaid rent 3000 Salary payable Retained earnigs Total 29000 1000 3000 29000