For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op- erate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. Chapter 4 Completing the Accounting Cycle 219 Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $4,500. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. Purchased additional office equipment on account from Office Necessities Co., $5,100. Received cash from clients on account, $12,750. Paid cash for a newspaper advertisement, $500. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. Provided services on account for the period July 1–12, $14,200. Paid receptionist for two weeks’ salary, $1,500. Record the following transactions on Page 2 of the journal: Received cash from cash clients for fees earned during the period July 1–17, $10,400. Paid cash for supplies, $1,000. Provided services on account for the period July 13–20, $9,000. Received cash from cash clients for fees earned for the period July 17–24, $8,500. Received cash from clients on account, $12,000. Paid receptionist for two weeks’ salary, $1,500. Paid telephone bill for July, $325. Paid electricity bill for July, $675. Received cash from cash clients for fees earned for the period July 25–31, $7,100. Provided services on account for the remainder of July, $5,500. Jolene withdrew $20,000 for personal use. Instructions 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 Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation—Office Equipment 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Jolene Upton, Capital 32 Jolene Upton, Drawing 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense Post the journal to a ledger of four-column accounts. Prepare an unadjusted trial balance. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during July is $375. Supplies on hand on July 31 are $2,850. Depreciation of office equipment for July is $400. Accrued receptionist salary on July 31 is $140. Rent expired during July is $2,000. Unearned fees on July 31 are $3,000. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner’s equity, and a balance sheet. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Prepare a post-closing trial balance.

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op- erate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. Chapter 4 Completing the Accounting Cycle 219 Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $4,500. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. Purchased additional office equipment on account from Office Necessities Co., $5,100. Received cash from clients on account, $12,750. Paid cash for a newspaper advertisement, $500. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. Provided services on account for the period July 1–12, $14,200. Paid receptionist for two weeks’ salary, $1,500. Record the following transactions on Page 2 of the journal: Received cash from cash clients for fees earned during the period July 1–17, $10,400. Paid cash for supplies, $1,000. Provided services on account for the period July 13–20, $9,000. Received cash from cash clients for fees earned for the period July 17–24, $8,500. Received cash from clients on account, $12,000. Paid receptionist for two weeks’ salary, $1,500. Paid telephone bill for July, $325. Paid electricity bill for July, $675. Received cash from cash clients for fees earned for the period July 25–31, $7,100. Provided services on account for the remainder of July, $5,500. Jolene withdrew $20,000 for personal use. Instructions 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 Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation—Office Equipment 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Jolene Upton, Capital 32 Jolene Upton, Drawing 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense Post the journal to a ledger of four-column accounts. Prepare an unadjusted trial balance. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during July is $375. Supplies on hand on July 31 are $2,850. Depreciation of office equipment for July is $400. Accrued receptionist salary on July 31 is $140. Rent expired during July is $2,000. Unearned fees on July 31 are $3,000. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner’s equity, and a balance sheet. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Prepare a post-closing trial balance.

Name: For the past several years, Jolene Upton has operated a part-time cons
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Description: For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op- erate the business, which was to be known as Gourmet Consulting, on a full-t

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5PB: For the past several years, Jeff Horton has operated a part-time consulting business from his home....

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July 1. The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. Chapter 4 Completing the Accounting Cycle 219

Paid three months’ rent on a lease rental contract, $6,000.
Paid the premiums on property and casualty insurance policies, $4,500.
Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000.
Purchased additional office equipment on account from Office Necessities Co., $5,100.
Received cash from clients on account, $12,750.
Paid cash for a newspaper advertisement, $500.
Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
Provided services on account for the period July 1–12, $14,200.
Paid receptionist for two weeks’ salary, $1,500.

Record the following transactions on Page 2 of the journal:

Received cash from cash clients for fees earned during the period July 1–17, $10,400.
Paid cash for supplies, $1,000.
Provided services on account for the period July 13–20, $9,000.
Received cash from cash clients for fees earned for the period July 17–24, $8,500.
Received cash from clients on account, $12,000.
Paid receptionist for two weeks’ salary, $1,500.
Paid telephone bill for July, $325.
Paid electricity bill for July, $675.
Received cash from cash clients for fees earned for the period July 25–31, $7,100.
Provided services on account for the remainder of July, $5,500.
Jolene withdrew $20,000 for personal use.

Instructions 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 Receivable

14 Supplies

15 Prepaid Rent

16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation—Office Equipment

21 Accounts Payable

22 Salaries Payable

23 Unearned Fees

31 Jolene Upton, Capital

32 Jolene Upton, Drawing

41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

Post the journal to a ledger of four-column accounts.
Prepare an unadjusted trial balance.
At the end of July, the following adjustment data were assembled.

Analyze and use these data to complete parts (5) and (6).

Insurance expired during July is $375.
Supplies on hand on July 31 are $2,850.
Depreciation of office equipment for July is $400.
Accrued receptionist salary on July 31 is $140.
Rent expired during July is $2,000.
Unearned fees on July 31 are $3,000.
(Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.
Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
Prepare an adjusted trial balance.
Prepare an income statement, a statement of owner’s equity, and a balance sheet.
Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.
Prepare a post-closing trial balance.

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