accounting 330 The Accounting Cycle: Nov. 1: Luis Ruiz invests $20,000 to start

Question

accounting 330 The Accounting Cycle: Nov. 1: Luis Ruiz invests $20,000 to start his own consulting agency Nov. 1: Purchased a one-year fire insurance policy, $960. Nov. 5: Acquired a computer for $10,000, paying $3,500 down with balance due In 60 days. Nov. 6: Purchased office supplies on account from Taylor Supply, $1,500. Nov.9: Paid Taylor Supply $400 on account. Nov. 10: Billed Barkley Insurance for consulting services performed, $6,000. Nov. 12: Collected $1,500 from Barkley Insurance Nov. 12: Hired secretary to be paid $600 per week. Nov. 15: Collected $1,000 from Bryant Realty for consulting services to be performed. Nov. 26: Paid the secretary two weeks' wages, $1,200. Nov. 29: Received and paid the November utility bill, $700. Nov. 30: Received (but did not pay) the November telephone bill $100. Nov. 30: Performed consulting services for Bing Enterprises, $4,800, to be collected in December Nov. 30: Ruiz withdrew $1,400 from the business for personal living expenses

Explanation / Answer

1. In the books of Ruiz Consulting:

2. Ruiz Consulting

Unadjusted Trial Balance

November 30

3. Adjusting entries:

4. Ruiz Consulting

Adjusted Trial Balance

November 30

5. a. Ruiz Consulting

Income Statement

For the month ended November 30

b. Ruiz Consulting

Statement of Owner's Equity

For the month ended November 30

c. Ruiz Consulting

Balance Sheet

November 30

Date Account Titles Debit Credit $ $ Nov 1 Cash 20,000 Luis Ruiz, Capital 20,000 Nov 1 Prepaid Insurance 960 Cash 960 Nov 5 Computer Equipment 10,000 Cash 3,500 Note Payable 6,500 Nov 6 Office Supplies 1,500 Accounts Payable 1,500 Nov 9 Accounts Payable 400 Cash 400 Nov 10 Accounts Receivable 6,000 Consulting Revenue 6,000 Nov 12 Cash 1,500 Accounts Receivable 1,500 Nov 12 No entry required Nov 15 Cash 1,000 Unearned Consulting Revenue 1,000 Nov 26 Wages Expense 1,200 Cash 1,200 Nov 29 Utilities Expense 700 Cash 700 Nov 30 Telephone Expense 100 Accounts Payable 100 Nov 30 Accounts Receivable 4,800 Consulting Revenue 4,800 Nov 30 Luis Ruiz, Withdrawals 1,400 Cash 1,400

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