You open your own business and complete these transactions in September 1 You in

Question

You open your own business and complete these transactions in September 1 You invest cash in your sole proprietorship. 120,000 $18,000 $15,000 $10,500 22,500 $6,000 $18,000 2,250 $750 $2,700 $2,400 2 Prepay twelve months' rent for with cash. 3 Make credit purchase of office equipment. 4 Complete work for a client and immediately received cash. 5 Complete a project for a client on account. 6 Pay cash toward purchase in 3, 7 Receive partial payment for work completed in 8 Purchase office supplies on account 9 Pay cash for this month's utility bill. 10 Pay employee's wages. 11 Withdraw cash from business At the end of the month the following adjustments were required: 12 One month's prepaid rent has expired 13 Office supplies on hand at the end of the month were 14 Wages accrued but unpaid 15 Fees earned but unbilled 16 Depreciation Expense ?7772 $750 $1,350 $7,500 $1,200 Required: A Journalize and post to T-accounts transactions 1-11. B Complete a worksheet using the adjustments in transactions 12-16 C Prepare an income statement, statement of owner's equity, and a balance sheet D Journalize closing entries E Prepare a post-closing trial balance Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Accumulated Depreciation Accounts Payable Wages Payable Capital Drawing Fees Earned Wage Expense Rent Expense Office Supplies Expense Depreciation Expense Utility Expense

Explanation / Answer

31500

Journal Entries Debit Credit Cash $120,000 To Capital $120,000 Prepaid rent $18,000 To Cash $18,000 Office Equipment $15,000 To Accounts Payable $15,000 Cash $10,500 To Fees Earned $10,500 Accounts Receivable $22,500 To Fees Earned $22,500 Accounts Payable $6,000 To Cash $6,000 Cash 18000 To Accounts Receivable 18000 Office Supplies 2250 To Accounts Receivable 2250 Utilities Expense 750 To Cash 750 Wages 2700 To Cash 2700 Drawings 2400 To Cash 2400 Rent Expense 1500 To Prepaid Rent 1500 18000/12 Supplies Expense 1500 To Supplies 1500 Wages Expense $1,350 To Wages Payable 1350 Accounts receivable 7500 To Fees Earned 7500 Depreciation 1200 To Accumulated Depreciation 1200 Income Summary 9000 To Rent Expense 1500 To Wages Expense 4050 To Depreciation 1200 To Supplies Expense 1500 To Utilities 750 Fees Earned $40,500 To Income Summary $40,500 Income Summary 31500 To Owners Equity

31500

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