Answered: business. Record these transactions in…

business. Record these transactions in T accounts. After all transactions are recorded, foot and balance the accounts if necessary.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter2: Analyzing Transactions Into Debit And Credit Parts

Section: Chapter Questions

Problem 1CP

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Comprehensive problem 1 Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement. 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 1-15; 9,180. 16. Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 16-20, 4,820. 25. Recorded cash from cash clients for fees earned for the period May 17-23, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Paid dividends, 10,500. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two- column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during May is 275. b. Supplies on hand on May 31 are 715. c. Depreciation of office equipment for May is 330. d. Accrued receptionist salary on May 31 is 325. e. Rent expired during May is 1,600. f. Unearned fees on May 31 are 3,210. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account 34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.
Comprehensive Problem 1 8 Net income. 31,425 Kelly Pitney began her consulting business. Kelly Consulting, on April 1, 20Y8. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter During May, Kelly Consulting entered into the following transactions: May 3.Received cash from clients as an advance payment for services to be provided and recorded it as unearned tree 4,500 5.Received cash from clients on account 2,450. 9.Paid cash for a newspaper advertisement 225. 13.Raid Office Station Co for part of the debt incurred on April , 640. 15.Recorded services provided on account for the period May 1-15, 9,180. 16 Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17.Recorded cash from cash clients for fees earned during the period May 116, 8,360. Record the following transactions on Page 6 of the Journal 20.Purchased support on account 735. 21.Recorded services provided on account for the period May 1620. 4,820 25.Recorded cash from cash clients for fees earned for the period May 1723, 7,900 27.Received cash from clients on account 9,520. 28.Paid part-time receptionist for two weeks salary. 7S0. 30.Raid telephone bill for May. 260 31.Paid electricity bill for May, 810. 31.Recorded cash from cash clients tor lees earned for the period May 2031. 3,300. 31.Recorded services provided on account for the remainder of May, 2,650. 31.Paid dividends 10,500 Instructions 1.The chart of accounts foe Kelly Consulting is shown us Exhibit 9. and the post-closing trial balance as of April 30, 20Y8, is shown in Exhibit 17. for each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1. 20Y8. and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting cm Page of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2.Post the journal to a ledger of four-column accounts. 5.Prepare an unadjusted trial balance. 4.At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (a)Insurance expired during May is 275. (b)Supplies on hand on May II are 715. (c)Depreciation of office equipment for May is 330. (d)Accrued receptionist salary on May 31 is 325. (e)Rent expired during May is 1600. (f)Unearned fees on May 31 are 3,210 5.(Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet 6.Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7.Prepare an adjusted trial balance. 8.Prepare an income statement, a statement of stockholders equity, and a balance sheet. 9.Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10.Prepare a post-closing trial balance.
All journals and general ledger; trial balance The transactions completed by Revere Courier Company during December, the first month of the fiscal year, were as follows: Dec. 1. Issued Check No. 610 for December rent, 4,200. 2. Issued Invoice No. 940 to Clifford Co., 1,740. 3. Received check for 4,800 from Ryan Co. in payment of account. 5. Purchased a vehicle on account from Platinum Motors, 37,300. 6. Purchased office equipment on account from Austin Computer Co., 4,500. 6. Issued Invoice No. 941 to Ernesto Co., 3,870. 9. Issued Check No. 611 for fuel expense, 600. 10. Received check from Sing Co. in payment of 4,040 invoice. 10. Issued Check No. 612 for 330 to Office To Go Inc. in payment of invoice. 10. Issued Invoice No. 942 to Joy Co., 1,970. 11. Issued Check No. 613 for 3,090 to Essential Supply Co. in payment of account. 11. Issued Check No. 614 for 500 to Porter Co. in payment of account. 12. Received check from Clifford Co. in payment of 1,740 invoice of December 2. 13. Issued Check No. 615 to Platinum Motors in payment of 37,300 balance of December 5. 16. Issued Check No. 616 for 39,800 for cash purchase of a vehicle. 16. Cash fees earned for December 1-16, 20,300. I7. Issued Cheek No. 617 for miscellaneous administrative expense, 500. 18. Purchased maintenance supplies on account from Essential Supply Co., 1,750. 19. Purchased the following on account from McClain Co.: maintenance supplies, 1,500; office supplies, 375. 20. Issued Check No. 618 in payment of advertising expense, 1,780. 20. Used 3,200 maintenance supplies to repair delivery vehicles. 23. Purchased office supplies on account from Office To Go Inc., 400. 24. Issued Invoice No. 943 to Sinn Co., 6,100. 24. Issued Check No. 619 to S. Holmes as a personal withdrawal, 3,000. 25. Issued Invoice No. 944 to Ernesto Co., 5,530. 25. Received check for 4,100 from Ryan Co. in payment of balance. 26. Issued Check No. 620 to Austin Computer Co. in payment of 4,500 invoice of December 6. 30. Issued Check No. 621 for monthly salaries as follows: driver salaries, 16,900; office salaries, 7,100. Dec. 31. Cash fees earned for December 17-31, S 18,900. 31. Issued Check No. 622 in payment for office supplies, 340. Instructions 1. Enter the following account balances in the general ledger as of December 1: 11 Cash 161,680 12 Accounts Receivable 12,940 14 Maintenance Supplies 10,850 15 Office Supplies 4,900 16 Office Equipment 28,500 17 Accum. Depr.Office Equip. 6,900 18 Vehicles 95,900 19 Accum. Depr.Vehicles 14,700 21 Accounts Payable 3,920 31 S. Holmes, Capital 289,250 32 S. Holmes, Drawing 41 Fees Earned 51 Driver Salaries Expense 52 Maintenance Supplies Exp. 53 Fuel Expense 61 Office Salaries Expense 62 Rent Expense 63 Advertising Expense 64 Miscellaneous Administrative Expense 2. Journalize the transactions for December, using the following journals similar to those illustrated in this chapter cash receipts journal (p. 30, purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), single-column revenue journal (p. 35). cash payments journal (p. 3i). and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made. 3. Post the appropriate individual entries to the general ledger. 4. Total each of the columns of the special journals and post the appropriate totals to the general ledger; insert the account balances. 5. Prepare a trial balance.
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement, 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 115, 9,180. 16. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 116, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 1620, 4,820. 25. Recorded cash from cash clients for fees earned for the period May 1723, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks' salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 2631, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Kelly withdrew 10,500 for personal use. Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two-column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during May is 275. b. Supplies on hand on May 31 are 715. c. Depreciation of office equipment for May is 330. d. Accrued receptionist salary on May 31 is 325. e. Rent expired during May is 1,600. f. Unearned fees on May 31 are 3,210. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.
All journals and general ledger; trial balance The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows: Mar. 1. Issued Check No. 205 for March rent, 2,450. 2. Purchased a vehicle on account from McIntyre Sales Co., 26,900. 3. Purchased office equipment on account from Office Mate Inc., 1,570. 5. Issued Invoice No. 91 to Ellis Co., 7,000. 6. Received check for 7,950 from Chavez Co. in payment of invoice. Mar. 7. Issued Invoice No. 92 to Trent Co., 9,840. 9. Issued Check No. 206 for fuel expense, 820. 10. Received check for 10,000 from Sajeev Co. in payment of invoice. 10. Issued Check No. 207 to Office City in payment of 450 invoice. 10. Issued Check No. 208 to Bastille Co. in payment of 1,890 invoice. 11. Issued Invoice No. 93 to Jarvis Co., 7,200. 11. Issued Check No. 209 to Porter Co. in payment of 415 invoice. 12. Received check for 7,000 from Ellis Co. in payment of March 5 invoice. 13. Issued Check No. 210 to McIntyre Sales Co. in payment of 26,900 invoice of March 2. 16. Cash fees earned for March 1 16, 26,800. 16. Issued Check No. 211 for purchase of a vehicle, 28,500. 17. Issued (-heck No. 212 for miscellaneous administrative expense, 4,680. 18. Purchased maintenance supplies on account from Bastille Co., 2,430. 18. Received check for rent revenue on office space, 900. 19. Purchased the following on account from Master Supply Co.: maintenance supplies, 2,640, and office supplies, 1,500. 20. Issued Check No. 213 in payment of advertising expense, 8,590. 20. Used maintenance supplies with a cost of 4,400 to repair vehicles. 21. Purchased office supplies on account from Office City, 990. 24. Issued Invoice No. 94 to Sajeev Co., 9,200. 25. Received check for 14,000 from Chavez Co. in payment of invoice. 25. Issued Invoice No. 95 to Trent Co., 6,300. 26. Issued Check No. 214 to Office Mate Inc. in payment of 1,570 invoice of March 3. 27. Issued Check No. 215 to J. Wu as a personal withdrawal, 4,000. 30. Issued Check No. 216 in payment of driver salaries, 33,300. 31. Issued Check No. 217 in payment of office salaries, 21,200. 31. Issued Check No. 218 for office supplies, 600. 31. Cash fees earned for March 17-31, 29,400. Instructions 1. Enter the following account balances in the general ledger as of March 1: 11 Cash 65,200 12 Accounts Receivable 31,950 14 Maintenance Supplies 7,240 15 Office Supplies 3,690 16 Office Equipment 17,300 17 Accum. Depr. Office Equip. 4,250 18 Vehicles 62,400 19 Accum. Depr.Vehicles 17,800 21 Accounts Payable 2,755 31 J.Wu, Capital 162,975 32 J.Wu, Drawing 41 Fees Earned 42 Rent Revenue 51 Driver Salaries Expense 52 Maintenance Supplies Expense 53 Fuel Expense 61 Office Salaries Expense 62 Rent Expense 63 Advertising Expense 64 Miscellaneous Administrative Exp. 2. Journalize the transactions for March, using the following journals similar to those illustrated in this chapter: single-column revenue journal (p. 35), cash receipts journal (p. 31), purchases journal (p. 37, with columns for Accounts Payable, Maintenance Supplies, Office Supplies, and Other Accounts), cash payments journal (p. 34), and two-column general journal (p. 1). Assume that the daily postings to the individual accounts in the accounts payable subsidiary ledger and the accounts receivable subsidiary ledger have been made. 3. Post the appropriate individual entries to the general ledger. 4. Total each of the columns of the special journals and post the appropriate totals to the general ledger; insert the account balances. 5. Prepare a trial balance.
Brief Exercise 2-32 Journalize Transactions Galle Inc. entered into the following transactions during January. January, 1: Borrowed $50,000 from First Street Bank by signing a note payable. January, 4: Purchased $25,000 of equipment for cash. January, 6: Paid $500 to landlord for rent for January. January, 15: Performed services for customers on account. $10,000. January, 25: Collected $3,000 from customers for services performed in Transaction d. January, 30: Paid salaries of $2,500 for the current month. Required: Prepare journal entries for the transactions.
Financial statements Assume that you recently accepted a position with Five Star National Bank Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for 300,000 from West Gate Auto Co., a small proprietorship. In support of the loan application, Joan Whalen, owner, submitted a Statement of Accounts (trial balance) for the first year of operations ended October 31, 2019. West Gate Auto Co. Statement of Accounts October 31,2019 Cash 5,000 Billings Due from Others 40,000 Supplies (chemicals, etc.) 7,500 Building 222,300 Equipment 50,000 Amounts Owed to Others 31,000 Investment in Business 179,000 Service Revenue 215,000 Wages Expense 75.000 Utilities Expense 10,000 Rent Expense 8,000 Insurance Expense 6,000 Other Expenses 1,200 425,000 425,000 1.Explain to Joan Whalen why a set of financial statements (income statement, statement of owners equity, and balance sheet) would be useful to you in evaluating the loan request. 2.In discussing the Statement of Accounts with Joan Whalen, you discovered that the accounts had not been adjusted at October 31. Analyze the Statement of Accounts and indicate possible adjusting entries that might be necessary before an accurate set of financial statements could be prepared. 3.Assuming that an accurate set of financial statements will be submitted by Joan Whalen in a few days, what other considerations or information would you require before making a decision on the loan request?
Financial statements Assume that you recently accepted a position with Five Star National Bank Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for 300,000 from West Gate Auto Co., a small proprietorship. In support of the loan application, Joan Whalen, owner, submitted a Statement of Accounts (trial balance) for the first year of operations ended October 31, 2016. 1. Explain to Joan Whalen why a set of financial statements (income statement, statement of owners equity, and balance sheet) would be useful to you in evaluating the loan request. 2. In discussing the Statement of Accounts with Joan Whalen, you discovered that the accounts had not been adjusted at October 31. Analyze the Statement of Accounts and indicate possible adjusting entries that might be necessary before an accurate set of financial statements could be prepared. 3. Assuming that an accurate set of financial statements will be submitted by Joan Whalen in a few days, what other considerations or information would you require before making a decision on the loan request?