accounting 330 The Accounting Cycle Nov 1 Luis Ruiz invests

The Accounting Cycle: Nov. 1: Luis Ruiz invests $20,000 to start his own consulting agency Nov. 1: Purchased a one-year fire insurance policy, $960. Nov. 5: Acquired a computer for $10,000, paying $3,500 down with balance due In 60 days. Nov. 6: Purchased office supplies on account from Taylor Supply, $1,500. Nov.9: Paid Taylor Supply $400 on account. Nov. 10: Billed Barkley Insurance for consulting services performed, $6,000. Nov. 12: Collected $1,500 from Barkley Insurance Nov. 12: Hired secretary to be paid $600 per week. Nov. 15: Collected $1,000 from Bryant Realty for consulting services to be performed. Nov. 26: Paid the secretary two weeks\' wages, $1,200. Nov. 29: Received and paid the November utility bill, $700. Nov. 30: Received (but did not pay) the November telephone bill $100. Nov. 30: Performed consulting services for Bing Enterprises, $4,800, to be collected in December Nov. 30: Ruiz withdrew $1,400 from the business for personal living expenses

Solution

1. In the books of Ruiz Consulting:

2. Ruiz Consulting

Unadjusted Trial Balance

November 30

3. Adjusting entries:

4. Ruiz Consulting

Adjusted Trial Balance

November 30

5. a. Ruiz Consulting

Income Statement

For the month ended November 30

b. Ruiz Consulting

Statement of Owner\'s Equity

For the month ended November 30

c. Ruiz Consulting

Balance Sheet

November 30

Date	Account Titles	Debit	Credit
		$	$
Nov 1	Cash	20,000
	Luis Ruiz, Capital		20,000
Nov 1	Prepaid Insurance	960
	Cash		960
Nov 5	Computer Equipment	10,000
	Cash		3,500
	Note Payable		6,500
Nov 6	Office Supplies	1,500
	Accounts Payable		1,500
Nov 9	Accounts Payable	400
	Cash		400
Nov 10	Accounts Receivable	6,000
	Consulting Revenue		6,000
Nov 12	Cash	1,500
	Accounts Receivable		1,500
Nov 12	No entry required
Nov 15	Cash	1,000
	Unearned Consulting Revenue		1,000
Nov 26	Wages Expense	1,200
	Cash		1,200
Nov 29	Utilities Expense	700
	Cash		700
Nov 30	Telephone Expense	100
	Accounts Payable		100
Nov 30	Accounts Receivable	4,800
	Consulting Revenue		4,800
Nov 30	Luis Ruiz, Withdrawals	1,400
	Cash		1,400