Homework SoursePrepare a worksheet that contains the following columns Tria
Prepare a worksheet that contains the following columns: Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement and Balance Sheet.
From the following transactions as well as add\'t data, please complete the entire accounting cycle for Parker\'s Plowing (using the chart of accounts below) for 2018.
Jan. 1 Parker invested $10,000 cash and $12,000 worth of snow equipment into the plowing company.
Jan. 1 Paid rent for six months in advance for garage space, $6000
Jan. 6 Purchased snow supplies for $800 casj/
Jan. 8 Collected $14,000 from plowing local shopping centers.
Jan. 12 Parker muroney withdrew $4000 from the business for his own personal use.
Jan. 20 Plowed Alton Co. parking lots, payment not to be received until May, $1, 500.
Jan. 26 Paid salaries to employees, $1900.
Jan. 28 Paid Lumen Corp. one-half amount owed for office equipment
Jan. 29 Advertising bill received from Washington Co. but will not be paid until May, $700
Jan. 30 Paid telephone bill, $130
Adjustent Data
a. Snow supplies on hand, $700
b. Rent expired, $1000
c. Depreciation on office equipent, $210: (12,600/5 yr = $2,520/12 mo. = $210).
d. Depreciation on snow equipment, $200: ($12,000/5 yr = $2,400/12 mo. = $200).
e. Accrued salaries, $380
Chart of accounts
Assets
111 Cash
112 Accounts Receivable
114 Prepaid Rent
115 Snow Supplies
121 Office Equipment
122 Accumulated Depreciation, Office Equipment
123 Snow Equipment
124 Accumulated Depreciation, Snow Equipment
Liabilities
211 Accounts Payable
212 Salaries Payable
Owners Equity
311 Parker Muroney, Capital
312 Parker Muroney, Withdrawls
313 Income Summary
Revenue
411 Plowing Fees
Expenses
511 Salary Expense
512 Advertising Expense
513 Telephone Expense
514 Rent Expense
515 Snow Supplies Expense
516 Depreciation Expense, Office Equipment
517 Depreciation Expense, Snow Equipment
| General Journal | ||||||||||||
| Date | Accounts Titles and Descriptions | Dr. | Cr. | |||||||||
| 2018 Jan | 1 | Cash | 10000 | |||||||||
| Snow Equipment | 12000 | |||||||||||
| Parker Muroney, Capital | 22000 | |||||||||||
| Investent | ||||||||||||
| 1 | Prepaid Rent | 6000 | ||||||||||
| Cash | 6000 | |||||||||||
| Rent Paid in Advance-6 months | ||||||||||||
| 4 | Office Equipment | 12600 | 12600 | |||||||||
| Accounts Payable | 12600 | |||||||||||
| Purchased Equipment on Account | ||||||||||||
| 6 | Snow Supplies | 800 | ||||||||||
| Cash | 800 | |||||||||||
| Supplies purchased for cash | ||||||||||||
| 8 | Cash | 14000 | ||||||||||
| Plowing Fees | 14000 | |||||||||||
| 12 | Parker Muroney, Withdrawls | 4000 | ||||||||||
| Cash | 4000 | |||||||||||
| Personal use | ||||||||||||
| 20 | Accounts Receivable | 1500 | ||||||||||
| Plowing Fees | 1500 | |||||||||||
| Services Rendered on Account | ||||||||||||
| 26 | Salary Expense | 1900 | ||||||||||
| Cash | 1900 | |||||||||||
| Paid Salaries | ||||||||||||
| 28 | Cash | 6000 | ||||||||||
| Accounts Payable | 6000 | |||||||||||
| Payment on Account | ||||||||||||
| 29 | Advertising Expenses | 700 | ||||||||||
| Accounts Payable | 700 | |||||||||||
| 30 | Telephone Expense | 130 | ||||||||||
| Cash | 130 | |||||||||||
| Totals | 69630 | 69630 | ||||||||||
Solution
Accounts Title
Trial Balance
Adjustments
Adjusted Trial balance
Income Statement
Balance Sheet
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
111 Cash
$ 4,870.00
$ 4,870.00
$ 4,870.00
112 Accounts Receivable
$ 1,500.00
$ 1,500.00
$ 1,500.00
114 Prepaid Rent
$ 6,000.00
$ 1,000.00
$ 5,000.00
$ 5,000.00
115 Snow Supplies
$ 800.00
$ 100.00
$ 700.00
$ 700.00
121 Office Equipment
$ 12,600.00
$ 12,600.00
$ 12,600.00
122 Accumulated Depreciation, Office Equipment
$ 210.00
$ 210.00
$ 210.00
123 Snow Equipment
$ 12,000.00
$ 12,000.00
$ 12,000.00
124 Accumulated Depreciation, Snow Equipment
$ 200.00
$ 200.00
$ 200.00
211 Accounts Payable
$ 7,000.00
$ 7,000.00
$ 7,000.00
212 Salaries Payable
$ 380.00
$ 380.00
$ 380.00
311 Parker Muroney, Capital
$ 22,000.00
$ 22,000.00
$ 22,000.00
312 Parker Muroney, Withdrawls
$ 4,000.00
$ 4,000.00
$ 4,000.00
313 Income Summary
$ 10,880.00
$ 10,880.00
411 Plowing Fees
$ 15,500.00
$ 15,500.00
$ 15,500.00
511 Salary Expense
$ 1,900.00
$ 380.00
$ 2,280.00
$ 2,280.00
512 Advertising Expense
$ 700.00
$ 700.00
$ 700.00
513 Telephone Expense
$ 130.00
$ 130.00
$ 130.00
514 Rent Expense
$ 1,000.00
$ 1,000.00
$ 1,000.00
515 Snow Supplies Expense
$ 100.00
$ 100.00
$ 100.00
516 Depreciation Expense, Office Equipment
$ 210.00
$ 210.00
$ 210.00
517 Depreciation Expense, Snow Equipment
$ 200.00
$ 200.00
$ 200.00
$ 44,500.00
$ 44,500.00
$ 45,290.00
$ 45,290.00
$ 15,500.00
$ 15,500.00
$ 40,670.00
$ 40,670.00
| Accounts Title | Trial Balance | Adjustments | Adjusted Trial balance | Income Statement | Balance Sheet | |||||
| Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |
| 111 Cash | $ 4,870.00 | $ 4,870.00 | $ 4,870.00 | |||||||
| 112 Accounts Receivable | $ 1,500.00 | $ 1,500.00 | $ 1,500.00 | |||||||
| 114 Prepaid Rent | $ 6,000.00 | $ 1,000.00 | $ 5,000.00 | $ 5,000.00 | ||||||
| 115 Snow Supplies | $ 800.00 | $ 100.00 | $ 700.00 | $ 700.00 | ||||||
| 121 Office Equipment | $ 12,600.00 | $ 12,600.00 | $ 12,600.00 | |||||||
| 122 Accumulated Depreciation, Office Equipment | $ 210.00 | $ 210.00 | $ 210.00 | |||||||
| 123 Snow Equipment | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | |||||||
| 124 Accumulated Depreciation, Snow Equipment | $ 200.00 | $ 200.00 | $ 200.00 | |||||||
| 211 Accounts Payable | $ 7,000.00 | $ 7,000.00 | $ 7,000.00 | |||||||
| 212 Salaries Payable | $ 380.00 | $ 380.00 | $ 380.00 | |||||||
| 311 Parker Muroney, Capital | $ 22,000.00 | $ 22,000.00 | $ 22,000.00 | |||||||
| 312 Parker Muroney, Withdrawls | $ 4,000.00 | $ 4,000.00 | $ 4,000.00 | |||||||
| 313 Income Summary | $ 10,880.00 | $ 10,880.00 | ||||||||
| 411 Plowing Fees | $ 15,500.00 | $ 15,500.00 | $ 15,500.00 | |||||||
| 511 Salary Expense | $ 1,900.00 | $ 380.00 | $ 2,280.00 | $ 2,280.00 | ||||||
| 512 Advertising Expense | $ 700.00 | $ 700.00 | $ 700.00 | |||||||
| 513 Telephone Expense | $ 130.00 | $ 130.00 | $ 130.00 | |||||||
| 514 Rent Expense | $ 1,000.00 | $ 1,000.00 | $ 1,000.00 | |||||||
| 515 Snow Supplies Expense | $ 100.00 | $ 100.00 | $ 100.00 | |||||||
| 516 Depreciation Expense, Office Equipment | $ 210.00 | $ 210.00 | $ 210.00 | |||||||
| 517 Depreciation Expense, Snow Equipment | $ 200.00 | $ 200.00 | $ 200.00 | |||||||
| $ 44,500.00 | $ 44,500.00 | $ 45,290.00 | $ 45,290.00 | $ 15,500.00 | $ 15,500.00 | $ 40,670.00 | $ 40,670.00 |
