Sam\'s Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receiv
ID: 2577664 • Letter: S
Question
Sam's Consulting Services
Chart of Accounts
Assets
101 Cash
111 Accounts Receivable
121 Supplies
134 Prepaid Insurance
137 Prepaid Rent
141 Equipment
142 Accumulated Depreciation—Equipment
Liabilities
202 Accounts Payable
Owner’s Equity
301 Trayton Sam, Capital
302 Trayton Sam, Drawing
309 Income Summary
Revenue
401 Fees Income
Expenses
511 Salaries Expense
514 Utilities Expense
517 Supplies Expense
520 Rent Expense
523 Depreciation Expense—Equipment
526 Advertising Expense
529 Maintenance Expense
532 Telephone Expense
535 Insurance Expense
INSTRUCTIONS
Open the general ledger accounts and enter the balances for January 1, 2020. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 2019, which appears in Figure 6.3.
Analyze each transaction and record it in the general journal. Use page 3 to begin January’s transactions.
Post the transactions to the general ledger accounts.
Prepare the Trial Balance section of the worksheet.
Prepare the Adjustments section of the worksheet.
Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand.
Compute and record the adjustment for expired insurance for the month.
Record the adjustment for one month of expired rent of $4,000.
Record the adjustment for depreciation of $183 on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February.
Complete the worksheet.
Prepare an income statement for the month.
Prepare a statement of owner’s equity.
Page 193Prepare a balance sheet using the report form.
Journalize and post the adjusting entries.
Journalize and post the closing entries.
Prepare a postclosing trial balance.
Analyze: Compare the January 31 balance sheet you prepared with the December 31 balance sheet shown in Figure 6.4.
What changes occurred in total assets, liabilities, and the owner’s ending capital?
What changes occurred in the Cash and Accounts Receivable accounts?
Has there been an improvement in the firm’s financial position? Why or why not?
DATE
TRANSACTIONS
Jan. 2 Purchased supplies for $7,000; issued Check 1015.
2 Purchased a one-year insurance policy for $8,400; issued Check 1016.
7 Sold services for $20,000 in cash and $5,000 on credit during the first week of January.
12 Collected a total of $4,000 on account from credit customers during the first week of January.
12 Issued Check 1017 for $3,600 to pay for special promotional advertising to new businesses on the local radio station during the month.
13 Collected a total of $4,500 on account from credit customers during the second week of January.
14 Returned supplies that were damaged for a cash refund of $750.
15 Sold services for $20,700 in cash and $2,300 on credit during the second week of January.
20 Purchased supplies for $5,000 from White’s, Inc.; received Invoice 2384 payable in 30 days.
20 Sold services for $12,500 in cash and $3,500 on credit during the third week of January.
20 Collected a total of $5,600 on account from credit customers during the third week of January.
21 Issued Check 1018 for $7,065 to pay for maintenance work on the office equipment.
22 Issued Check 1019 for $3,600 to pay for special promotional advertising to new businesses in the local newspaper.
23 Received the monthly telephone bill for $1,025 and paid it with Check 1020.
26 Collected a total of $1,600 on account from credit customers during the fourth week of January.
27 Issued Check 1021 for $3,000 to Office Plus as payment on account for Invoice 2223.
28 Sent Check 1022 for $2,675 in payment of the monthly bill for utilities.
29 Sold services for $19,000 in cash and $2,750 on credit during the fourth week of January.
31 Issued Checks 1023–1027 for $32,800 to pay the monthly salaries of the regular employees and three part-time workers.
31 Issued Check 1028 for $12,000 for personal use.
31 Issued Check 1029 for $4,150 to pay for maintenance services for the month.
31 Purchased additional equipment for $15,000 from Contemporary Equipment Company; issued Check 1030 for $10,000 and bought the rest on credit. The equipment has a five-year life and no salvage value.
31 Sold services for $7,600 in cash and $1,620 on credit on January 31.
book is Haddock College accounting 4e. I only have the book online and don't know how to share it with you. Any ideas?
Sam's and Eli's is the same. It was a typo.
FIGURE 6.3 Postclosing Trial Balance Eli's Consulting Services Postclosing Trial Balance December 31, 2019 ACCOUNT NAME CREDIT DEBIT 111 35 000 5 00 0 00 Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Trayton Eli, Capital Totals 4 0 00 00 110 0 00 18 3 00 35 0 0 00 128667 00 132 35 0 00132 3 5 0 00 DIExplanation / Answer
In the books of Eli's Consulting Service :
Contd.
Adjusting Entries:
Date Account Titles Debit Credit $ $ Jan 2 Supplies 7,000 Cash 7,000 Jan 2 Prepaid Insurance 8,400 Cash 8,400 Jan 7 Cash 20,000 Accounts Receivable 5,000 Fees Income 25,000 Jan 12 Cash 4,000 Accounts Receivable 4,000 Jan 12 Advertising Expense 3,600 Cash 3,600 Jan 13 Cash 4,500 Accounts Receivable 4,500 Jan 14 Cash 750 Supplies 750 Jan 15 Cash 20,700 Accounts Receivable 2,300 Fees Income 23,000 Jan 20 Supplies 5,000 Accounts Payable 5,000 Jan 20 Cash 12,500 Accounts Receivable 3,500 Fees Income 16,000 Jan 20 Cash 5,600 Accounts Receivable 5,600 Jan 21 Maintenance Expense 7,065 Cash 7,065 Jan 22 Advertising Expense 3,600 Cash 3,600Related Questions
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