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, 2019, 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 Consulting entered into the following transactions during April:

Required:

1. Journalize each transaction, in chronological order, 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.

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, notice that the unadjusted trial balance amounts have been entered. Enter the adjusting entries and complete the remainder of the worksheet.

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 statement of owner's equity, and a balance sheet.

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.

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

10. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank.

Apr. 1. The following assets were received from Jeff Horton: 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. Provided services on account for the period April 1–12, $21,900. 14. Paid receptionist for two weeks' salary, $1,650.

Explanation / Answer

1. Journal Entries:

2. Ledger Posting:

3. Unadjusted Trial Balance:

4. Closing/Adjusting Entries:

5. Adjusted Trial Balance:

6.

S No Date Account Debit Credit 1 Apr 1 Cash 20000 1 Apr 1 Accounts Receivable 14700 1 Apr 1 Supplies 3300 1 Apr 1 Office Equipment 12000 1 Apr 1 Jeff Horton, Capital 50000 2 Apr 1 Prepaid Rent 6000 2 Apr 1 Cash 6000 3 Apr 2 Prepaid Insurance 4200 3 Apr 2 Cash 4200 4 Apr 4 Cash 9400 4 Apr 4 Unearned Fees 9400 5 Apr 5 Office Equipment 8000 5 Apr 5 Accounts Payable 8000 6 Apr 6 Cash 11700 6 Apr 8 Accounts Receivable 11700 7 Apr 10 Miscellaneous Expense 350 7 Apr 10 Cash 350 8 Apr 12 Accounts Payable 6400 8 Apr 12 Cash 6400 9 Apr 12 Accounts Receivable 21900 9 Apr 12 Fees Earned 21900 10 Apr 14 Salary Expense 16500 10 Apr 14 Cash 16500 11 Apr 17 Cash 6600 11 Apr 17 Fees Earned 6600 12 Apr 18 Supplies 725 12 Apr 18 Cash 725 13 Apr 20 Accounts Receivable 16800 13 Apr 20 Fees Earned 16800 14 Apr 24 Cash 4450 14 Apr 24 Fees Earned 4450 15 Apr 26 Cash 26500 15 Apr 26 Accounts Receivable 26500 16 Apr 27 Salary Expense 1650 16 Apr 27 Cash 1650 17 Apr 29 Miscellaneous Expense 540 17 Apr 29 Cash 540 18 Apr 30 Miscellaneous Expense 760 18 Apr 30 Cash 760 19 Apr 30 Cash 5160 19 Apr 30 Fees Earned 5160 20 Apr 30 Accounts Receivable 2590 20 Apr 30 Fees Earned 2590 21 Apr 30 Jeff Horton, Drawing 18000 21 Apr 30 Cash 18000

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