Homework SourseSOS Please please please help on this problem Closing Entri
SOS Please please please help on this problem!!!!!!!!!!!!!!!!!!!!!! :)
Closing Entries and the Postclosing Trial Balance 192 CHAPTER 6 Mini-Practice Set 1 Service Business Accounting Cycle Eli\'s Consulting Services ing principles and This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Eli\'s Consulting Services for the month o January 2020. Assume that you are the chief accountant for Eli\'s Consulting Services, During January, the busi ness will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Eli\'s Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January. INTRODUCTION Eli\'s Consulting Services Chart of Accounts Revenue 401 Fees Income Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated Depreciation Equipment Liabilities 202 Accounts Payable 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 Owner\'s Equity 301 Trayton Eli, Capital 302 Trayton Eli, Drawing 309 Income Summary INSTRUCTIONS 1. 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. 2. Analyze each transaction and record it in the general journal. Use page 3 to begin January\'s transactions. 3. Post the transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet. 5. Prepare the Adjustments section of the worksheet. a. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. b. Compute and record the adjustment for expired insurance for the month. c. Record the adjustment for one month of expired rent of $4,000. d. 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, 6. Complete the worksheet. 7. Prepare an income statement for the month. 8. Prepare a statement of owner\'s equity.Solution
Journal Entries
Date
Account Title
Debit
Credit
2-Jan
Supplies
7000
Cash
7000
7-Jan
Cash
20000
Accounts receivable
5000
Fees Income
25000
2-Jan
Insurance expense
8400
Cash
8400
12-Jan
Cash
4000
Accounts receivable
4000
Advertising expense
3600
Cash
3600
Cash
20700
Accounts receivable
2300
Fees Income
23000
13-Jan
Cash
4500
Accounts receivable
4500
14-Jan
Cash
750
Supplies
750
20-Jan
Supplies
5000
Accounts Payable
5000
20-Jan
Cash
12500
Accounts receivable
3500
Fees Income
16000
20-Jan
Cash
5600
Accounts receivable
5600
21-Jan
Maintenance expense
7065
Cash
7065
22-Jan
Advertising expense
3600
Cash
3600
23-Jan
Telephone expense
1025
Cash
1025
26-Jan
Cash
1600
Accounts Receivables
1600
27-Jan
Account payable
3000
Cash
3000
28-Jan
Utilities Expense
2675
Cash
2675
29-Jan
Cash
19000
Accounts receivable
2750
Fees Income
21750
31-Jan
Salaries expense
32800
Cash
32800
Trayton Eli,Drawings
12000
Cash
12000
Maintenance expense
4150
Cash
4150
Equipment
15000
Cash
10000
Account payable
5000
Cash
7600
Accounts Receiavble
1620
Fees Income
9220
Adjusting Entries
Supplies expense
6050
Supplies
6050
(7000+5000-750-5200)
Prepaid Insurance
7700
Insurance Expense
7700
8400-(8400/12)
Rent expense
4000
Accounts payable
4000
Depreciation expense
183
Accumulated depreciation-Equipment
183
234668
234668
NET LEDGER BALANCE
LEDGER ACCOUNTS
Debit
Credit
Debit
Credit
27-Jan
Account payable
3000
31-Jan
Account payable
5000
20-Jan
Accounts Payable
5000
31-Jan
Accounts payable
4000
11000
31-Jan
Accounts Receiavble
1620
7-Jan
Accounts receivable
5000
12-Jan
Accounts receivable
4000
12-Jan
Accounts receivable
2300
13-Jan
Accounts receivable
4500
20-Jan
Accounts receivable
3500
20-Jan
Accounts receivable
5600
29-Jan
Accounts receivable
2750
26-Jan
Accounts Receivables
1600
-530
31-Jan
Accumulated depreciation-Equipment
183
183
12-Jan
Advertising expense
3600
22-Jan
Advertising expense
3600
7200
2-Jan
Cash
7000
7-Jan
Cash
20000
2-Jan
Cash
8400
12-Jan
Cash
4000
12-Jan
Cash
3600
12-Jan
Cash
20700
13-Jan
Cash
4500
14-Jan
Cash
750
20-Jan
Cash
12500
20-Jan
Cash
5600
21-Jan
Cash
7065
22-Jan
Cash
3600
23-Jan
Cash
1025
26-Jan
Cash
1600
27-Jan
Cash
3000
28-Jan
Cash
2675
29-Jan
Cash
19000
31-Jan
Cash
32800
31-Jan
Cash
12000
31-Jan
Cash
4150
31-Jan
Cash
10000
31-Jan
Cash
7600
935
31-Jan
Depreciation expense
183
183
31-Jan
Equipment
15000
15000
7-Jan
Fees Income
25000
12-Jan
Fees Income
23000
20-Jan
Fees Income
16000
29-Jan
Fees Income
21750
31-Jan
Fees Income
9220
94970
2-Jan
Insurance expense
8400
31-Jan
Insurance Expense
7700
700
21-Jan
Maintenance expense
7065
31-Jan
Maintenance expense
4150
11215
31-Jan
Prepaid Insurance
7700
7700
31-Jan
Rent expense
4000
4000
31-Jan
Salaries expense
32800
32800
2-Jan
Supplies
7000
14-Jan
Supplies
750
20-Jan
Supplies
5000
31-Jan
Supplies
6050
5200
31-Jan
Supplies expense
6050
6050
23-Jan
Telephone expense
1025
1025
31-Jan
Trayton Eli,Drawings
12000
12000
28-Jan
Utilities Expense
2675
2675
234668
234668
106153
106153
Trial balance
Debit
Credit
Cash
935
Accounts Receiavble
530
Prepaid Insurance
7700
Supplies
5200
Account payable
11000
Equipment
15000
Accumulated depreciation-Equipment
183
Trayton Eli,Drawings
12000
Fees Income
94970
Advertising expense
7200
Depreciation expense
183
Insurance expense
700
Maintenance expense
11215
Rent expense
4000
Salaries expense
32800
Supplies expense
6050
Telephone expense
1025
Utilities Expense
2675
106683
106683
Income statement
Fees Income
94970
Less: Operating expenses:
Advertising expense
7200
Depreciation expense
183
Insurance expense
700
Maintenance expense
11215
Rent expense
4000
Salaries expense
32800
Supplies expense
6050
Telephone expense
1025
Utilities Expense
2675
65848
Operating Income
29122
Balance sheet
Current assets
Cash
935
Accounts Receiavble
-530
Prepaid Insurance
7700
Supplies
5200
13305
Fixed assets
Equipment
15000
Less: Accumulated depreciation-Equipment
183
14817
Total assets
28122
Liabilities & Equity
Current laibilities
Accounts payable
11000
Equity
Opg.income
29122
Less: Trayton Eli,Drawings
-12000
17122
Total Liabilities & Equity
28122
Statement of Owner\'s Equity
Current year Operating income
29122
Less: Trayton Eli,Drawings
-12000
Net Equity balance
17122
| Journal Entries | |||
| Date | Account Title | Debit | Credit |
| 2-Jan | Supplies | 7000 | |
| Cash | 7000 | ||
| 7-Jan | Cash | 20000 | |
| Accounts receivable | 5000 | ||
| Fees Income | 25000 | ||
| 2-Jan | Insurance expense | 8400 | |
| Cash | 8400 | ||
| 12-Jan | Cash | 4000 | |
| Accounts receivable | 4000 | ||
| Advertising expense | 3600 | ||
| Cash | 3600 | ||
| Cash | 20700 | ||
| Accounts receivable | 2300 | ||
| Fees Income | 23000 | ||
| 13-Jan | Cash | 4500 | |
| Accounts receivable | 4500 | ||
| 14-Jan | Cash | 750 | |
| Supplies | 750 | ||
| 20-Jan | Supplies | 5000 | |
| Accounts Payable | 5000 | ||
| 20-Jan | Cash | 12500 | |
| Accounts receivable | 3500 | ||
| Fees Income | 16000 | ||
| 20-Jan | Cash | 5600 | |
| Accounts receivable | 5600 | ||
| 21-Jan | Maintenance expense | 7065 | |
| Cash | 7065 | ||
| 22-Jan | Advertising expense | 3600 | |
| Cash | 3600 | ||
| 23-Jan | Telephone expense | 1025 | |
| Cash | 1025 | ||
| 26-Jan | Cash | 1600 | |
| Accounts Receivables | 1600 | ||
| 27-Jan | Account payable | 3000 | |
| Cash | 3000 | ||
| 28-Jan | Utilities Expense | 2675 | |
| Cash | 2675 | ||
| 29-Jan | Cash | 19000 | |
| Accounts receivable | 2750 | ||
| Fees Income | 21750 | ||
| 31-Jan | Salaries expense | 32800 | |
| Cash | 32800 | ||
| Trayton Eli,Drawings | 12000 | ||
| Cash | 12000 | ||
| Maintenance expense | 4150 | ||
| Cash | 4150 | ||
| Equipment | 15000 | ||
| Cash | 10000 | ||
| Account payable | 5000 | ||
| Cash | 7600 | ||
| Accounts Receiavble | 1620 | ||
| Fees Income | 9220 | ||
| Adjusting Entries | |||
| Supplies expense | 6050 | ||
| Supplies | 6050 | ||
| (7000+5000-750-5200) | |||
| Prepaid Insurance | 7700 | ||
| Insurance Expense | 7700 | ||
| 8400-(8400/12) | |||
| Rent expense | 4000 | ||
| Accounts payable | 4000 | ||
| Depreciation expense | 183 | ||
| Accumulated depreciation-Equipment | 183 | ||
| 234668 | 234668 |
