On April 1st John Milton open Milton company the company provides services to a

Question

On April 1st John Milton open Milton company the company provides services to a variety of clients the company was organized as a corporation and has a monthly accounting period,The following transactions occurred during April. April 1st Milton invested $50,000 cash in the company in exchange for its common stock. April 1st the company paid $1,500 cash to rent office space for April. April 1st the company paid $720 cash for the premium on a six-month insurance policy coverage begins on April 1st. April 4th the company perform services for a client and received $3,800 cash. April 7th the company purchased $1,780 of supplies on account. April 14th the company paid $980 cash for salary earned by an employee. April 24th the company perform services for a client and receive $5,400 cash. April 28th the company paid $980 cash for salary earned by an employee. April 30th the company paid $480 cash for this month's utility bill. April 30th the company paid $900 cash in dividends. The companies chart of accounts follows:

complete the entire accounting cycle for Milton company the nine steps are listed below steps 1 through 3 take place daily these three steps should be repeated in order each time a transaction takes place during the period. steps for through 9 take place at the end of the period These steps should be completed in order after the period is over.

ASSETS REVENUES Cash Supplies Prepaid Insurance Service Revenue EXPENSES Salary Expense Rent Expense Supplies Expense Utilities Expense insurance Expense LIABILITIES Accounts Payable salary Payable EQUITY Common Stock Retained Earnings CLEARING Income Summary DIVIDENDS Dividends Adjustment Data 1. As of April 30, $120 of insurance coverage has expired. 2. As of April 30, the company has $849 of supplies remaining. 3. As of April 30, the company has incurred $140 of unpaid and unrecorded salary.

Explanation / Answer

1)journal

2)Unadjusted Trial Balance

3)ADJUSTING ENTRIES

4)

5)FINANCIAL STATEMENTS

NOTE:RENT FOR THE MONTH HAS BEEN PAID ON APRIL 1 FOR MONTH OF APRIL IS PREPAID RENT.

AS ADJUSTMENT DATA DIDNT HAVE THE REQUIREMENT OF RECOGNIZING THE RENT , SAME HAS BEEN KEPT AS PREPAID RENT.

YOU CAN RECOGNIZE RENT FOR THE MONTH OF APRIL AND DO CHANGES ACCORDINGLY

Date Accounts and explanation Debit Credit april 1 cash $50,000 Paid In Capital $50,000 (invested $50,000 cash in the company in exchange for its common stock) april 1 prepaid rent $1,500 cash $1,500 (cash paid for rent for office space for April) april 1 prepaid insurance $720 cash $720 (cash for the premium on a six-month insurance policy ) April 4 Cash $3,800 Revenue-Sale of Services $3,800 (company perform services for a client and received $3,800 cash.) April 7 Office Supplies $1,780 Accounts Payable $1,780 (company purchased $1,780 of supplies on account) April14 Salary Expenses $980 Cash $980 (company paid $980 cash for salary earned by an employee) April 24 Cash $5,400 Revenue-Sale of Services $5,400 (Company perform services for a client and receive $5,400 cash) April 28 Salary Expense $980 cash $980 (the company paid $980 cash for salary earned by an employee.) April 30 Utility Expense $480 cash $480 (the company paid $480 cash for this month's utility bill) April 30 Dividend Expenses $900 cash $900 (the company paid $900 cash in dividends)

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