2008 Josh has decided toincorporate his consulting practice under the name of \"
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2008Josh has decided toincorporate his consulting practice under the name of "JoshConsulting Inc." On July 1, 2008, he established a bankaccount for the business by transferring $30,000 from his personalsavings account into a new business account. In exchange for thiscash, he received 30,000 shares of common stock.On July 1, 2008,the company leased office space in New York. The lease is for twoyears at $500 per month and the entire biannual lease payment of$12,000 is paid in advance. A summary of the transactions for the remainder of 2008 (i.e.,July through December) is as follows: Purchased $800 worth of office supplies on account during2008. Billed clients for services rendered. The total billings for2008 were $60,000. Cash received from clients on previously billed revenue was$52,000.
Paid john agreed upon salary of $7,000 amonth for the six-month period.
Paid $700 on account for the office supplies purchased during2008.
All of the office supplies purchased during the year were used byDecember 31.
Remember to record the rent expense that was prepaid in July. 2009 His business was really starting to increase so Johndecided he needed some help. he hired Nicole as his executiveassistant on January 1, 2009 and agreed to pay her $3,000 permonth for his services. A summary of the transactions for 2009 is as follows: Purchased an additional $2,800 worth of office supplies onaccount during the year. Billed clients for services rendered. The total billings for2009 were $150,000. Cash received from clients on previously billed revenue was$152,000.
Paid john agreed upon salary of $7,000 a month for the entireyear.
Paid nicole agreed upon salary for the entire year.
Paid the remaining $100 on account from last year and an additional$2,400 was paid on account for the office supplies purchased in2009.
There was $400 worth of office supplies left at the end of2009.
Remember to record the rent expense that was prepaid lastyear. Required Journalize the above transactions in the generaljournal. All recurring transactions (e.g., rent and salariesexpense) can be recorded as one summary entry for the year insteadof twelve identical monthly entries. A chart of accounts isincluded below. Create additional accounts if necessary. Once thetransactions for 2008 have been recorded, post thesetransactions to the general ledger/T-accounts in order to create atrial balance. Once created trial balance, record the adjustingentries and prepare an adjusted trial balance. The next step is toprepare all four financial statements in good formfrom the adjusted trial balance. Then prepare and record closingentries in order to start the next year. Repeat the abovesteps for 2009.
CHART OF ACCOUNTS 100 Cash
110 Accounts Receivable
130 Prepaid Rent
140 Office Supplies
200 Accounts Payable
300 Common Stock
350 Retained Earnings
400 Consulting Fee Revenue
700 Office Supplies Expense
710 Rent Expense
720 Salaries Expense 2008
Josh has decided toincorporate his consulting practice under the name of "JoshConsulting Inc." On July 1, 2008, he established a bankaccount for the business by transferring $30,000 from his personalsavings account into a new business account. In exchange for thiscash, he received 30,000 shares of common stock.On July 1, 2008,the company leased office space in New York. The lease is for twoyears at $500 per month and the entire biannual lease payment of$12,000 is paid in advance. A summary of the transactions for the remainder of 2008 (i.e.,July through December) is as follows: Purchased $800 worth of office supplies on account during2008. Billed clients for services rendered. The total billings for2008 were $60,000. Cash received from clients on previously billed revenue was$52,000.
Paid john agreed upon salary of $7,000 amonth for the six-month period.
Paid $700 on account for the office supplies purchased during2008.
All of the office supplies purchased during the year were used byDecember 31.
Remember to record the rent expense that was prepaid in July. 2009 His business was really starting to increase so Johndecided he needed some help. he hired Nicole as his executiveassistant on January 1, 2009 and agreed to pay her $3,000 permonth for his services. A summary of the transactions for 2009 is as follows: Purchased an additional $2,800 worth of office supplies onaccount during the year. Billed clients for services rendered. The total billings for2009 were $150,000. Cash received from clients on previously billed revenue was$152,000.
Paid john agreed upon salary of $7,000 a month for the entireyear.
Paid nicole agreed upon salary for the entire year.
Paid the remaining $100 on account from last year and an additional$2,400 was paid on account for the office supplies purchased in2009.
There was $400 worth of office supplies left at the end of2009.
Remember to record the rent expense that was prepaid lastyear. Required Journalize the above transactions in the generaljournal. All recurring transactions (e.g., rent and salariesexpense) can be recorded as one summary entry for the year insteadof twelve identical monthly entries. A chart of accounts isincluded below. Create additional accounts if necessary. Once thetransactions for 2008 have been recorded, post thesetransactions to the general ledger/T-accounts in order to create atrial balance. Once created trial balance, record the adjustingentries and prepare an adjusted trial balance. The next step is toprepare all four financial statements in good formfrom the adjusted trial balance. Then prepare and record closingentries in order to start the next year. Repeat the abovesteps for 2009.
CHART OF ACCOUNTS 100 Cash
110 Accounts Receivable
130 Prepaid Rent
140 Office Supplies
200 Accounts Payable
300 Common Stock
350 Retained Earnings
400 Consulting Fee Revenue
700 Office Supplies Expense
710 Rent Expense
720 Salaries Expense
Explanation / Answer
x.j5rong>Year 2008
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