ACC1800 ACCOUNTING PROCEDURES Project 1 Recording Transacti

ACC1800 -ACCOUNTING PROCEDURES Project # 1: Recording Transactions (Chps 1 & 2) Summer Edwards will manage Edwards Caddy Services at Canyon Lake Golf and Country Club during lune through September 2017 has had no formal training in bookkeeping Summer keeps receipts and notes of all revenues and expenses in a shoe box. Your examination of the Summer\'s shoe box of caddy rents a small maintenance buälding from the country club and offers caddy services, including cart rentals, to golfers. Summer service records for June revealed the following Jun 1 Summer contributed to Edwards Caddy Service, by depositing $8,000 into the business accoum 1 Paid June rental fee of $1,000 for a small building at Canyon Lake Golf and Country Club 2 Paid June rental fee of $1,500 for 40 regular pulling golf carts and 20 gasoline-drive carts 3 Purchased golf supplies (practice balls, gasoline, etc), on account $2,000. 15 Paid wages to part-time employees, $850 20 Paid cash to creditors on account, $1,000 30 A count of all the \"Pay Later slips from customers for caddy services performed from June 1-30, totalled, $3,000 30 A count of all the \"Paid Cash slips from customers for caddy services performed from June 1-30, totalled $9,000. 30 Paid the following business expenses: Paid wages to part-time employees, $1,250. Paid telephone and electricity expenses, $300 Paid miscellaneous expenses, $25o 30 Summer withdrew $3,800 for personal use. Summer has asked you several questions concerning his financial affairs to date, and he has asked you to assist with his bookkeeping and reporting of financial data. Requirements: 1. Journalize Edwards Caddy Service\'s lune transactions. 2. Post Edwards Caddy Service\'s June transactions to T-Accounts. 3. Prepare Edwards Caddy Service\'s Trial Balance as of lune 30, 2017. 4. Prepare Edwards Caddy Service\'s Income Statement for the month ended June 30, 2017 5. Prepare Edwards Caddy Service\'s Statement of Owner\'s Equity for the month ended june 30, 2017 6 Prepare Edwards Caddy Service\'s Balance Sheet as of June 30, 2017 COMPLETE ENTIRE PACKET NEATLY USING PENCIL, NO INK 1 of 7

Solution

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jun Cash      8,000.00 Summer Edwards, Capital      8,000.00 (record the capital introduced) 1-Jun Rent Expenses      1,000.00 Cash      1,000.00 (record the rent paid) 3-Jun Supplies      2,000.00    Accounts Payable      2,000.00 (Record the golf supplies purchased) 15-Jun Salaries & Wages Expenses          850.00    Cash          850.00 (Record the wages paid) 20-Jun Accounts Payable      1,000.00 Cash      1,000.00 (record the cash paid to creditors) 30-Jun Accounts Receivables      3,000.00 Service Revenue      3,000.00 (Record the services provided on account) 30-Jun Cash      9,000.00 Service Revenue      9,000.00 (Record the services provided) 30-Jun Salaries & Wages Expenses      1,250.00 Telephone & Electricity Expenses          300.00 Miscellaneous Expenses          250.00 Cash      1,800.00 (record the expenses paid) 30-Jun Summer Edwards, Withdrawls      3,800.00 Cash      3,800.00 (Record the withdrawls by summer) Answer 2. Cash Accounts Receivable Supplies 1-Jun        8,000.00        1,000.00 1-Jun 30-Jun        3,000.00 3-Jun      2,000.00 30-Jun        9,000.00            850.00 15-Jun        1,000.00 20-Jun        1,800.00 30-Jun        3,800.00 30-Jun End. Bal.        8,550.00 End. Bal.        3,000.00 End. Bal.      2,000.00 Accounts Payable Summer Edwards, Capital Summer Edwards, Withdrawls 20-Jun        1,000.00        2,000.00 3-Jun      8,000.00 1-Jun 30-Jun      3,800.00 End. Bal.        1,000.00 End. Bal.      8,000.00 End. Bal.      3,800.00 Service Revenue Rent Expense Salaries & Wages Expenses      3,000.00 30-Jun 1-Jun      1,000.00 15-Jun            850.00      9,000.00 30-Jun 30-Jun        1,250.00 End. Bal.    12,000.00 End. Bal.      1,000.00 End. Bal.        2,100.00 Telephone & Electricity Expenses Miscellaneous Expenses 30-Jun            300.00 30-Jun          250.00 End. Bal.            300.00 End. Bal.          250.00 Answer 3. Edwards Caddy Services Trial Balance As of June 30, 2017 Accounts Title Debits Credits Cash        8,550.00 Accounts Receivable        3,000.00 Supplies        2,000.00 Summer Edwards, Capital        8,000.00 Summer Edwards, Withdrawls        3,800.00                     -   Accounts Payable        1,000.00 Service Revenue      12,000.00 Rent Expense        1,000.00 Salaries & Wages Expenses        2,100.00 Telephone & Electricity Expenses            300.00 Miscellaneous Expenses            250.00 Total      21,000.00      21,000.00                     -   Answer 4 Edwards Caddy Services Income Statement For The Month Ended Jun 30, 2017 Revenues: Service Revenue      12,000.00 Expenses Rent Expense        1,000.00 Salaries & Wages Expenses        2,100.00 Telephone & Electricity Expenses            300.00 Miscellaneous Expenses            250.00 Total Expenses        3,650.00 Net Income (Loss)        8,350.00 Answer 5. Edwards Caddy Services Statement of Owners\' Equity For The Month Ended Jun 30, 2017 Beginning Balance                     -   Investment during June        8,000.00 Net Income (Loss)        8,350.00 Withdrawls      (3,800.00) Ending Balance      12,550.00 Answer 6. Edwards Caddy Services Balance Sheet As of June 30, 2017 Assets Current Assets Cash        8,550.00 Accounts Receivable        3,000.00 Supplies        2,000.00 Total Current Assets      13,550.00 Property, Plant & Equipment                     -   Total Assets      13,550.00 Liabilities & Owners\' Equity Liabilities Current Liabilities Accounts Payable        1,000.00 Long-Term Liabilities                     -   Total Liabilities        1,000.00 Owners\' Equity      12,550.00 Total Liabilities & Owners\' Equity      13,550.00