PR 4-5B Complete accounting cycle Obj. 4, 5 8.Net income: For the past several y

Question

PR 4-5B Complete accounting cycle Obj. 4, 5 8.Net income: For the past several years, Jeff Horton has operated a part-time consulting business from his $53,775 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: Apr. 1. The following assets were recelved from Jeff Horton in exchange for common stock cash, $20,000 accounts recelvable, $14,700 supplies, $3,300, and office equipment, $12,000. There were no lablities recelved BCB TEMPLATE 1. Pald three months' rent on a lease rental contract, $6,000. 2. Pald the premiums on property and casualty insurance policies, $4,200. 4 Recelved cash from clients as an advance payment for services to be provided and recorded it as un earned fees, $9,400. s. Purchased additional office equipment on account from Smith Office Supply Co, $8,000. 6. Recelved cash from clients on account, $11,700. 10. Pald 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 Apnil 1-12, $21,900. 14. Pald receptionist for two weeks'salary, $1,650 Record the following transactions on Page 2 of the journal 17. Recorded cash from cash clients for fees carned during the period April 1-16, $6,600. 18. Pald cash for supplies, $725 20. Recorded services provided on account for the period April 13-20, $16,800. 24. Recorded cash from cash dients for fees earned for the period Apnil 17-24, $4,450. 26. Recelved cash from clients on account, $26,500 27. Pald receptionist for two weeks'salary, $1,650 29. Paid telephone bill for April $540 30. Pald electricity bll for April $760. 30. Recorded cash from cash dients for fees earned for the period Apnil 25-30, $5,10. 30. Recorded services provided on account for the remainder of April $2,590 30- Paid dividends, $18,000. 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. (Do not insert the account numbers in the journal at this time.) 11 Cash 12 Accounts Recelvable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 31 Common Stock 32 Retained Earnings 33 Dividends 41 Fees Earned 1 Salary Expense 52 Supplies Expense 53 Rent Expense 54 Depreclation Expense 5 Insurance Expense 59 cellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. i. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance explred during April is $350. B) Supplies on hand on April 30 are $1,225. C) Depreclation of office equipment for April is $400. D) Accrued receptionist salary on April 30 is $275. Rent expired during April is $2.000. Unearned fees on April 30 are $2,350.

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Apr Cash    20,000.00 Accounts Receivable    14,700.00 Supplies      3,300.00 Office Equipment    12,000.00 Common Stock      50,000.00 1-Apr Prepaid Rent      6,000.00 Cash        6,000.00 2-Apr Prepaid Insurance      4,200.00 Cash        4,200.00 4-Apr Cash      9,400.00 Unearned Service Revenue        9,400.00 5-Apr Office Equipment      8,000.00 Accounts Payable        8,000.00 6-Apr Cash    11,700.00 Accounts Receivable      11,700.00 10-Apr Advertisement Expense          350.00 Cash            350.00 12-Apr Accounts Payable      6,400.00 Cash        6,400.00 12-Apr Accounts Receivable    21,900.00 Service Revenue      21,900.00 14-Apr Salaries Expense      1,650.00    Cash        1,650.00 17-Apr Cash      6,600.00 Service Revenue        6,600.00 18-Apr Supplies          725.00 Cash            725.00 20-Apr Accounts Receivable    16,800.00 Service Revenue      16,800.00 24-Apr Cash      4,450.00 Service Revenue        4,450.00 26-Apr Cash    26,500.00 Accounts Receivable      26,500.00 27-Apr Salaries Expense      1,650.00    Cash        1,650.00 29-Apr Misc Expense          540.00 Cash            540.00 30-Apr Misc Expense          760.00 Cash            760.00 30-Apr Cash      5,160.00 Service Revenue        5,160.00 30-Apr Accounts Receivable      2,590.00 Service Revenue        2,590.00 30-Apr Dividends    18,000.00 Cash      18,000.00 Answer 4. Adjusting Journal Entry Date Particulars Dr. Amt. Cr. Amt. A. Insurance Expense          350.00    Prepaid Insurance            350.00 B. Supplies Expense      2,800.00    Supplies        2,800.00 C. Depreciation Expense          400.00    Accumulated Dep. - Office Equip.            400.00 D. Salaries Expense          275.00    Salaries Payable            275.00 E. Rent Expense      2,000.00    Prepaid Rent        2,000.00 F. Unearned Fees      7,050.00    Service Revenue        7,050.00 Answer 2. Cash Accounts Receivable Date Debit   Credit Balance Date Debit   Credit Balance 1-Apr      20,000.00          20,000.00 Dr. 1-Apr      14,700.00      14,700.00 Dr. 1-Apr            6,000.00          14,000.00 Dr. 6-Apr      11,700.00        3,000.00 Dr. 2-Apr            4,200.00            9,800.00 Dr. 12-Apr      21,900.00      24,900.00 Dr. 4-Apr        9,400.00          19,200.00 Dr. 20-Apr      16,800.00      41,700.00 Dr. 6-Apr      11,700.00          30,900.00 26-Apr      26,500.00      15,200.00 Dr. 10-Apr                350.00          30,550.00 Dr. 30-Apr        2,590.00      17,790.00 Dr. 12-Apr            6,400.00          24,150.00 Dr. 14-Apr            1,650.00          22,500.00 Dr. 17-Apr        6,600.00          29,100.00 Dr. Office Equipment 18-Apr                725.00          28,375.00 Dr. Date Debit   Credit Balance 24-Apr        4,450.00          32,825.00 Dr. 1-Apr      12,000.00      12,000.00 Dr. 26-Apr      26,500.00          59,325.00 Dr. 5-Apr        8,000.00      20,000.00 Dr. 27-Apr            1,650.00          57,675.00 Dr. 29-Apr                540.00          57,135.00 Dr. Accounts Payable 30-Apr                760.00          56,375.00 Dr. Date Debit   Credit Balance 30-Apr        5,160.00          61,535.00 Dr. 5-Apr        8,000.00        8,000.00 Cr. 30-Apr          18,000.00          43,535.00 Dr. 12-Apr        6,400.00        1,600.00 Cr. Prepaid Rent Common Stock Date Debit   Credit Balance Date Debit   Credit Balance 1-Apr        6,000.00            6,000.00 Dr. 1-Apr      50,000.00      50,000.00 Cr. E.            2,000.00            4,000.00 Dr. Supplies Dividends Date Debit   Credit Balance Date Debit   Credit Balance 1-Apr        3,300.00            3,300.00 Dr. 30-Apr      18,000.00      18,000.00 Dr. 18-Apr            725.00            4,025.00 Dr. B.            2,800.00            1,225.00 Dr. Misc Expense Date Debit   Credit Balance Unearned Revenue 29-Apr            540.00            540.00 Dr. Date Debit   Credit Balance 30-Apr            760.00        1,300.00 Dr. 4-Apr            9,400.00            9,400.00 Cr. F.        7,050.00            2,350.00 Cr. Service Revenue Prepaid Insurance Date Debit   Credit Balance Date Debit   Credit Balance 12-Apr          21,900.00          21,900.00 Cr. 2-Apr        4,200.00        4,200.00 Dr. 17-Apr            6,600.00          28,500.00 Cr. A.            350.00        3,850.00 Dr. 20-Apr          16,800.00          45,300.00 Cr. 24-Apr            4,450.00          49,750.00 Cr. Salaries Expense 30-Apr            5,160.00          54,910.00 Cr. Date Debit   Credit Balance 30-Apr            2,590.00          57,500.00 Cr. 14-Apr        1,650.00        1,650.00 Dr. F.            7,050.00          64,550.00 Cr. 27-Apr        1,650.00        3,300.00 Dr. D.            275.00        3,575.00 Dr. Advertising Expense Date Debit   Credit Balance 10-Apr            350.00                350.00 Dr. Supplies Expense Insurance Expense Date Debit   Credit Balance Date Debit   Credit Balance B.        2,800.00        2,800.00 Dr. A.            350.00                350.00 Dr. Depreciation Expense Accumulated Depreciation - Office Equip. Date Debit   Credit Balance Date Debit   Credit Balance C.            400.00                400.00 Dr. C.                     -              400.00            400.00 Cr Salaries Payable Rent Expense Date Debit   Credit Balance Date Debit   Credit Balance D.                     -                  275.00                275.00 Cr E.        2,000.00        2,000.00 Dr. Answer 3. Rosebud Consultancy Unadjusted Trial Balance As of Apr 30, 2018 Debit Credit Cash      43,535.00 Accounts Receivable      17,790.00 Prepaid Rent         6,000.00 Prepaid Insurance         4,200.00 Supplies         4,025.00 Office Equipment      20,000.00 Accounts Payable        1,600.00 Unearned Revenue        9,400.00 Common Stock      50,000.00 Dividends      18,000.00 Service Revenue      57,500.00 Misc Expense         1,300.00 Advertising Expense            350.00 Salaries Expense         3,300.00 Totals    118,500.00    118,500.00                     -   Answer 4. Rosebud Consultancy Adjusted Trial Balance As of Apr 30, 2018 Debit Credit Cash      43,535.00 Accounts Receivable      17,790.00 Prepaid Rent         4,000.00 Supplies         1,225.00 Prepaid Insurance         3,850.00 Office Equipment      20,000.00 Accumulated Depreciation - Office Equip.            400.00 Accounts Payable                      -          1,600.00 Unearned Revenue        2,350.00 Salaries Payable            275.00 Common Stock      50,000.00 Dividends      18,000.00 Service Revenue      64,550.00 Misc Expense         1,300.00 Salaries Expense         3,575.00 Advertising Expense            350.00 Insurance Expense            350.00 Supplies Expense         2,800.00 Depreciation Expense            400.00 Rent Expense         2,000.00 Totals    119,175.00    119,175.00

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