Question

All information is included in the scanned pages of the assignment.

Sassafras Sis, Inc Chart of Accounts Income Statement Accounts Crede D Debut Debit 5 Expenses 51 Expenses Debit Balance Sheet Accounts 1 Assets 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Office Equipment 16 Accum. Depreciation Office 2 bits 21 Accounts Payable 22 Accr e spa 23 Unand Revenue Debit Credit Credit 3 Stockholders' Equity 31 Common Stock Credit 2 Retained Earnings Credit 33 Dividends Debit Sassafras S ine is a pool design firm based in Osona, Fonda. Based on the following fact pattern complete the entire accounting cycle case study for May 2006 Record the following entries for the month of May in the General Journal (6) Page 1 and 2 May 1 invested $25,000 cash in exhange for Common Stod 1 Paid cash $1,200 for 12 month insurance policy 3 Pd cash for various expenses $3.000 5 Purchased supplies $2.000 on count, 10 Pad cash for office equipment S1600 I can | | 20 Revenue from design w al pools $12.000 Received 59.000 cash renderon account 22 Received $300 cash from customer for future work 24 Received $1.000 cash from customer paying down count 25 Social media kesexceed 5000 Marketing anticipates a sales bump of Si per like 30 Board of Directors declared and paid cash Didend $1,000 EXCLUDE THE DESCRIPTION ALWAYS LEAVE A SPACE BETWEEN SEPARATE TRANSACTIONS 2 Post to General Ledger GL) 3 Produce the adsted Trial Balance 4 Record Adjusting Entries on Journal Page 3 Entry Type 31 Supplies on hand at month and $250 Periodic inventory expense 31 Office Equipment Depreciates starighet inne over 3 years Estimated Expense 31 Record insurance expense for month end Deferred Expense (You Prepaid an expensel 31 Earned $300 of Uncanned Revenue Deferred Revenue (Customer Prepaid you 31 hours design work on long term contract, 5100 per hour Accrued Revenue 31 Record tax expense Tax rate 60% Acorand Expense Post Austings to the Gold ) 6 Produce the Adjusted Trial Balance 7 Produce an Income Statement, Retained Earnings Statement and Balance Sheet 8 Record on Journal Page 4 the closing of a temporary accounts directly into Retained Earnings 10 Post to General Ledger GLI 11 Produce the Post Closing Trial Balance May

Answer 1

Particulars	Debit	Credit
Cash	$25,000
Common Stock		$25,000
Investment of Cash in exchange of common stock
Particulars	Debit	Credit
Pre Paid Insurance	$1,200
Cash		$1,200
Paid for 12 months insurance policy in advance
Particulars	Debit	Credit
Expenses	$3,000
Cash		$3,000
Various expenses made in cash
Particulars	Debit	Credit
Supplies	$2,000
Accounts payable		$2,000
Purchase of supplies on account.
Particulars	Debit	Credit
Office Equipment	$3,600
Cash		$3,600
Purchase of office equipment in cash
Particulars	Debit	Credit
Accounts Payable	$1,000
Cash		$1,000
Cash Payment to creditor.
Particulars	Debit	Credit
Cash	$7,000
Account Receivable	$5,000
Revenue		$12,000
Particulars	Debit	Credit
Cash	$900
Un-earned Revenue		$900
Advance received from Customer for future work
Particulars	Debit	Credit
Cash	$1,000
Account Receivable		$1,000
Particulars	Debit	Credit
"No entry Required for market anticipations"
Particulars	Debit	Credit
Dividend	$1,000
Cash		$1,000
Un Adjusted Trial Balance As on
Ledger	Debit	Credit
Cash	$23,100
Account Receivable	$5,000
Supplies	$2,000
Pre Paid Insurance	$1,200
Office Equipment	$3,600
Accumulated Depreciation -Office Equipment
Accounts Payable		$1,000
Accruals
Un-earned Revenue		$900
Common Stock		$25,000
Retained Earnings
Dividends	$1,000
Revenue		$12,000
Expenses	$3,000
Total	$38,900	$38,900

Adjusting Entries
Particulars	Debit	Credit
Expenses	$1,750
Supplies		$1,750
Supplies Purchased	$2,000
Closing supplies	$250
Net Supplies used during the month and needs to be accounted as expenses	$1,750
Particulars	Debit	Credit
Expenses	$100
Accumulated Depreciation -Office Equipment		$100
Office Equipment Cost	$3,600
Depreciation Per Month on straight line basis (3600/3/12)	$100
Particulars	Debit	Credit
Expenses	$100
Pre Paid Insurance		$100
Insurance expenses per month -1200/12 = 100
Particulars	Debit	Credit
Un-earned Revenue	$300
Revenue		$300
Particulars	Debit	Credit
Accrued Revenue	$500
revenue		$500
Particulars	Debit	Credit
Income tax expense
Income tax expense Payable		$0
Adjusted Trial Balance
Ledger	Debit	Credit
Cash	$23,100
Account Receivable	$5,000
Supplies	$250
Pre Paid Insurance	$1,100
Office Equipment	$3,600
Accumulated Depreciation -Office Equipment		$100
Accounts Payable		$1,000
Accruals	$500
Un-earned Revenue		$600
Common Stock		$25,000
Retained Earnings
Dividends	$1,000
Revenue		$12,800
Expenses	$4,950
Total	$39,500	$39,500

Debit $0 $25,000 Cash Opening Balance Common Stock Pre Paid Insurance Expenses Office Equipment Accounts Payable Sales Un-earned Revenue Dividend Balance Credit Debit/(Credit $0 $25,000 $1,200 $23,800 $3,000 $20,800 $3,600 $17,200 $1,000 $16,200 $23.2001 $24,100 $1,000 $23,100 $7,000 $900 Common Stock Opening Balance Cash Debit sol Balance Credit Debit/Credit $0 $25,000 -$25,000 Credit Balance Debit/Credit Pre Paid Insurance Opening Balance Cash Debit $0 $1,2001 $0 $1,200 Credit Expenses Opening Balance Cash Supplies Accumulated Depreciation Office Equipmen Pre Paid Insurance Debit $0 $3,000 $1,750 $100 $100 Balance Debit/(Credit $0 $3,000 $4,750 $4,850 $4,950 Balance Debit/Credit Credit Supplies Opening Balance Accounts payable Expenses Debit $0 $2,000 $0 $2,000 $250 1750 Balance Debit/(Credit Debit | Credit $0 s01 Accounts Payable Opening Balance Supplies Cash $2,000 $2,000 -$1,000 $1,000

Debit Balance Debit/Credit Credit Office Equipment Opening Balance Cash $0 $0 $3,600 $3,600 Credit Balance Debit/Credit Accounts Receivable Opening Balance Sales Debit $0 $5,000 $0 $5,000 Balance Debit/Credit Debit Credit $0 $0 Revenue Opening Balance Cash Account Receivable Un-earned Revenue Accrued Revenue L $7,000 5000 300 500 -$7,000 -$12,000 -$12,300 -$12,800 Credit Balance Debit/Credit $0 Un-earned Revenue Opening Balance Cash Revenue Debit $0 T 300 T $900 -$9001 -$600 Credit Dividend Opening Balance Cash Debit $0 $1,000 Balance Debit/(Credit $0 $1,000 Income Statement Revenue Less: Operating Expenses Income from Operation Less: Tax Expenses Net Income transferred to Retained earnings $12.800 - $4,950 $7,850 $3,140 $4,710

Retained Earnings Statement Begging Retained Earnings Add: Net Income for the period $4,710 Less: Dividends Ending Retained earnings -$1,000 $3.710 Balance Sheet Assets Cash Account Receivable $23,100 $5,000 Supplies Pre Paid Insurance Office Equipment Accruals $250 $1,100 $3,600 $500 $33,550 Total Assets Liabilities Accumulated Depreciation -Office Equipmen Accounts Payable Un-earned Revenue Accruals Total Assets Liabilities $100 $1,000 $600 $3,140 $4,840 Shareholders Equity Common Stock Retained Earnings $25,000 $3,710 $28,710 Total Liabilities and Shareholders eq_$33,550