Complete Accounting Cycle For the past several years, Jeff Horton has operated a

Question

Complete Accounting Cycle

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

Required:

1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. If there is more than one entry on the same date, be sure to enter the transactions in the exact order as presented in the data. (Do not insert the account numbers in the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.

You will use the attached spreadsheet to complete several of the remaining parts of this problem. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

2. Post the transactions from part 1 to the general ledger in the attached spreadsheet. The posting must be in chronological order. Be sure to go back and enter the appropriate posting references in the journal.

Feedback

1. Identify what account is used and then what type of account is used for each transaction. Remember that each transaction will have at least one debit and one credit.

2. Remember as you prepare your 4-column accounts: For each debit and each credit recorded in the journal, identify what account is used and transfer the amount from the journal to the appropriate ledger account.

Learning Objective 4, Learning Objective 5.

3. In the spreadsheet, prepare an unadjusted trial balance.

4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during April is $350.
b. Supplies on hand on April 30 are $1,225.
c. Depreciation of office equipment for April is $400.
d. Accrued receptionist salary on April 30 is $275.
e. Rent expired during April is $2,000.
f. Unearned fees on April 30 are $2,350.

5. (Optional) In the spreadsheet, enter the unadjusted trial balance on the end-of-period work sheet and complete the work sheet.

6. Journalize the adjusting entries on Page 3 of the journal. (Do not insert the account numbers in the journal at this time.) Post the adjusting entries to the general ledger in the spreadsheet. The posting must be in chronological order. Then go back and enter the appropriate posting references in the journal.

7. In the spreadsheet, prepare the adjusted trial balance.

8. Prepare an income statement, a retained earnings statement, and a balance sheet.

If an answer is zero, enter "0".

9. Journalize the closing entries on Page 4 of the journal. (Do not insert the account numbers in the journal at this time.) Post the closing entries to the general ledger in the spreadsheet. Then go back and enter the appropriate posting references in the journal. (Income Summary is account #34 in the chart of accounts.)

For a compound transaction, if an amount box does not require an entry, leave it blank.

10. Prepare a post-closing trial balance. List the accounts in order by type: Assets, Liablities, Capital, Dividends, Revenue, and Expenses. If an amount box does not require an entry, leave it blank.

Apr. 1. The following assets were received from Jeff Horton in exchange for common stock: cash, $20,000; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. There were no liabilities received. 1. Paid three months’ rent on a lease rental contract, $6,000. 2. Paid the premiums on property and casualty insurance policies, $4,200. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400. 5. Purchased additional office equipment on account from Smith Office Supply Co., $8,000. 6. Received cash from clients on account, $11,700. 10. Paid cash for a newspaper advertisement, $350. 12. Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400. 12. Recorded services provided on account for the period April 1–12, $21,900. 14. Paid receptionist for two weeks’ salary, $1,650.

Explanation / Answer

1. Journalize each transaction in a two-column journal starting on Page 1, JOURNAL PAGE 1 Date Account Title Post. Ref. Debit Credit 2018 April. 1 Cash 20000 Accounts Receivable 14700 Supplies 3300 Office Equipment 12000 Common Stock 50000 april. 1 Prepaid Rent 6000 Cash 6000 april. 2 Prepaid Insurance 4200 Cash 4200 April. 4 Cash 9400 Unearned Fees 9400 April. 5 Office Equipment 8000 Accounts Payable 8000 April. 6 Cash 11700 Accounts Receivable 11700 April.10 Miscellaneous Expense 350 Cash 350 April.12 Accounts Payable 6400 Cash 6400 April.12 Accounts Receivable 21900 Fees Earned 21900 April.14 Salary Expense 1650 Cash 1650 JOURNAL PAGE 2 Date Account Title Post. Ref. Debit Credit 2018 April.17 Cash 6600 Fees Earned 6600 April.18 Supplies 725 Cash 725 April.20 Accounts Receivable 16800 Fees Earned 16800 April.24 Cash 4450 Fees Earned 4450 April.26 Cash 26500 Accounts Receivable 26500 April.27 Salary Expense 1650 Cash 1650 April.29 Miscellaneous Expense 540 Cash 540 April.30 Miscellaneous Expense 760 Cash 760 April.30 Cash 5160 Fees Earned 5160 April.30 Accounts Receivable 2590 Fees Earned 2590 April.30 Dividends 18000 Cash 18000 2. Post the transactions from part 1 to the general ledger in the attached spreadsheet. Cash Date Account Debit Credit Balance April. 1 20000 20000 April. 1 6000 14000 April. 2 4200 9800 April. 4 9400 19200 April. 6 11700 30900 April.10 350 30550 April.12 6400 24150 April.14 1650 22500 April.17 6600 29100 April.18 725 28375 April.24 4450 32825 April.26 26500 59325 April.27 1650 57675 April.29 540 57135 April.30 760 56375 April.30 5160 61535 April.30 18000 43535 Accounts Receivable Date Account Debit Credit Balance April. 1 14700 14700 April. 6 11700 3000 April.12 21900 24900 April.20 16800 41700 April.26 26500 15200 April.30 2590 17790 Supplies Date Account Debit Credit Balance April. 1 3300 3300 April.18 725 4025 Prepaid rent Date Account Debit Credit Balance April. 1 6000 6000 Prepaid Insurance Date Account Debit Credit Balance April. 2 4200 4200 Office Equipment Date Account Debit Credit Balance April. 1 12000 12000 April. 5 8000 20000 Accumulated Depreciation Date Account Debit Credit Balance Accounts Payable Date Account Debit Credit Balance April. 5 8000 8000 April.12 6400 1600 Salaries Payable Date Account Debit Credit Balance Unearned Fees Date Account Debit Credit Balance April. 4 9400 9400 Common Stock Date Account Debit Credit Balance April. 1 50000 50000 Retained Earnings Date Account Debit Credit Balance Dividends Date Account Debit Credit Balance April.30 18000 18000 Fees Earned Date Account Debit Credit Balance April.12 21900 21900 April.17 6600 28500 April.20 16800 45300 April.24 4450 49750 April.30 5160 54910 April.30 2590 57500 Salary Expense Date Account Debit Credit Balance April.14 1650 1650 April.27 1650 3300 Supplies Expense Date Account Debit Credit Balance Rent expense Date Account Debit Credit Balance Depreciation Expense Date Account Debit Credit Balance Insurance expense Date Account Debit Credit Balance Miscellaneous Expense Date Account Debit Credit Balance April.10 350 350 April.29 540 890 April.30 760 1650 3. In the spreadsheet, prepare an unadjusted trial balance Account Debit Credit Cash 43535 Accounts Receivable 17790 Supplies 4025 Prepaid rent 6000 Prepaid Insurance 4200 Office Equipment 20000 Accumulated Depreciation Accounts Payable 1600 Salaries Payable Unearned Fees 9400 Common Stock 50000 Retained Earnings Dividends 18000 Fees Earned 57500 Salary Expense 3300 Supplies Expense Rent expense Depreciation Expense Insurance expense Miscellaneous Expense 1650 Total 118500 118500 4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). GENERAL JOURNAL PAGE 3 Date Account Title Post.Ref. Debit Credit 2018 Adjusting Entries a. Apr. 30 Insurance Expense 350 Prepaid Insurance 350 b. Apr. 30 Supplies expense 2800        Supplies 2800 c. Apr. 30 Depreciation Expense 400 Accumulated Depreciation 400 d. Apr. 30 Salary expense 275 Salary Payable 275 e. Apr. 30 Rent expense 2000 Prepaid rent 2000 f. Apr. 30 Unearned fees 7050 Fees earned 7050 Note: For remaining parts of this assignment, please submit a fresh request.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.