For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $120. Paid Payne Company a portion of the debt incurred on September 5, $800. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, $400. Recorded cash from cash clients for fees earned during the first half of September, $2,100. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, $400. Paid telephone bill for September, $130. Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. Recorded services provided on account for the remainder of September, $500. Requirement: Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Advertising Expense Post the journal entries to their respective ledger accounts. Prepare a trial balance based on the balances derived after completing requirement #2.

For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $120. Paid Payne Company a portion of the debt incurred on September 5, $800. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, $400. Recorded cash from cash clients for fees earned during the first half of September, $2,100. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, $400. Paid telephone bill for September, $130. Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. Recorded services provided on account for the remainder of September, $500. Requirement: Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Advertising Expense Post the journal entries to their respective ledger accounts. Prepare a trial balance based on the balances derived after completing requirement #2.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 3PB: On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During...

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Scenario:

Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received.

Paid three (3) months rent on a lease rental contract, $3,600.
Paid the premiums on the property and peril insurance policies, $1,500.
Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.
Purchased additional office equipment on account from Payne Company, $1,800.
Received cash from clients on account, $800.
Paid cash for newspaper advertisement, $120.
Paid Payne Company a portion of the debt incurred on September 5, $800.
Recorded services provided on account for the period September 1 -12, $1,200.
Paid part-time receptionist for two weeks’ salary, $400.
Recorded cash from cash clients for fees earned during the first half of September, $2,100.
Paid cash for supplies, $750.
Recorded services provided on account for the period September 13-20, $1,100.
Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.
Received cash from clients on account, $1,300.
Paid part-time receptionist for two weeks salary, $400.
Paid telephone bill for September, $130.
Paid electricity bill for September, $200.
Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.
Recorded services provided on account for the remainder of September, $500.

Requirement:

Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction:

Account #	Account Name
11	Cash
12	Accounts Receivables
14	Supplies
15	Prepaid Rent
16	Prepaid Insurance
18	Office Equipment
21	Accounts Payable
22	Salaries Payable
23	Unearned Fees
31	Capital Stock
41	Fees Earned
51	Salary Expense
52	Rent Expense
53	Supplies Expense
54	Insurance Expense
55	Utilities Expense
56	Advertising Expense

Post the journal entries to their respective ledger accounts.

Prepare a trial balance based on the balances derived after completing requirement #2.

The company presented the following adjustments and require you to preparing the adjusting entries in the general journal (Narration required for each journal entry):
Insurance expired during September, $125.
Supplies on hand on September 30, $1,250.

Accrued receptionist salary on September 30, $120

Rent expired during September, $800.
Unearned fees on September 30 are $1,200.
Post the adjusting entries to their respective ledger accounts already started in requirement # 2.

Prepare the adjusted trial balance.

Prepare the financial statements for the month of September for presentation to Angela Smith.

Journalize the closing entries and balance off the ledger accounts.

Prepare the post-closing trial balance.

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