ConnectClass Accoul M MHE Reader general ledgerBing r Acct

Connect-Class: Accoul M MHE Reader general ledger-Bing r ? Acct l Exam 1 Summ × Acct Prin l Exam 1-AC How to Take a Screen S | + v ? ? ?fù ? https: /howard blackboard.com bbcswebdav pid-2194337 dt content rid-6124953-1/courses/ACCT20180201 805 Acct%201%20Exam%201 Comprehensive problem- The Accounting Cycle On August 1, 2018, David McKinsey created a company, McKinsey Consulting. The following transactions occurred during the company\'s first month Aug Anthony invested $120,000 cash and computer equipment worth $50,000 in the com- pany in exchange for common stock. The company rented furnished office space by prepaying $4,500 for the first 5 month\'s rent 1 The company purchased $5,000 of office supplies on credit 1 The company paid $4,800 for the premium on a 12-month insurance policy 8 The company agreed to perform a long tem consulting contract for a client, Mr. Roo- ney, who paid $30,000 upfront to McKinsey Consulting. 14 The company paid $7,000 for two weeks\' salaries eamed by employees 24 The company collected $60,000 from consulting services performed for Ms. Tate. 28 The company paid $7,000 for two weeks\' salaries eamed by employees. 29 The company paid $1,900 for repairs to the company\'s computer. 30 The company paid $1,200 for this month\'s telephone bill 30 The company paid $1,800 for dividends. 1. Prepare joumal entries to record McKinsey Consulting\'s transactions for its first month of operations. SKIP A LINE BETWEEN EACH JOURNAL ENTRY. Explanations are not required. 2. Post the journal entries to the general ledger and calculate each account\'s ending balance. 3. Prepare an unadjusted trial balance on the trial balance worksheet. List the accounts in the correct order, On August 31, McKinsey Consulting reviewed its books and noted the following a. One month\'s insurance coverage has expired b. At the end of the month, $1,900 of office supplies is still available c. This month\'s depreciation on the computer equipment is $3,500 d. Employees earned $1,850 of unpaid and unrecorded salaries for the pod August 29-31 e. The company eamed $5,250 of consulting fees that are not yet billed at month-end f. On August 31, the unearned balance on Mr. Rooney\'s consulting contract is $20,000 Record the company\'s rent expense for August. 4. Prepare adjusting journal entries to record these transactions. SKIP A LINE BETWEEN EACH JOUR-

Solution

1

Date	Accounts title	Dr	Cr
Aug 1	Cash	120000
	Equipment	50000
	To cash		170000
1	Prepaid rent	4500
	To cash		4500
1	Office supplies	5000
	To Accounts payable		5000
1	Insurance premium	4800
	To cash		4800
8	Cash	30000
	To unearned revenue		30000
14	Salaries expense	7000
	To cash		7000
24	Cash	60000
	To Service revenue		60000
28	salaries expense	7000
	To cash		7000
29	Repair and maintenance expense	1900
	To cash		1900
30	Telephone expense	1200
	To cash		1200
30	Dividend	1800
	To cash		1800