Comprehensive Accounting Cycle Review Problem Student Name __Mckayla Elcock ________________ Complete the Comprehensive Problem beginning on page ! on the included work papers" Submit the assignment to your instructor AN# upload it to your ePort$olio%
&" Sub Submit mit to to your your instruc instructor tor by 'uly 'uly & & !(&) !(&) *+( poin point, t, !" -plo -pload ad to your your ePort$oli ePort$olio o by 'uly &) !(&) !(&) and submit submit url on Canvas Canvas"" *!( points, points, .ou .o u can complete /& and skip /! but you will lose the !( points" *.ou can get help setting up an ePort$olio in the library on the Redwood campus", &01nstructions on how to submit the assignment to your instructor *+( points,% Complete the problem by hand and scan Submit via a link on the Canvas home page Make a digital copy o$ your completed problem" o 2og into your Canvas account home page $or this course o Click on the Submit My Comprehensive Problem link on the bottom o$ the home page o Click on submit my assignment link in the upper right hand corner o -se the browse button to select the $ile and submit o •
Be sure and put your name on the assignment and keep a copy. !01nstructions on how to submit your assignment via your ePort$olio *!( points,% -pload the completed assignment to your ePort$olio Coursework page *copy the page url, 2og into your Canvas account home page $or this course Click on the Submit My ePort$olio link on the bottom o$ the home page Click on submit my assignment link in the upper right hand corner Paste the url page into the bo3 provided and submit !( points are awarded $or submitting your assignment via your ePort$olio according to these instructions • • • • • •
Note: This is the project that lets you know if your level of understanding is where it needs to be to be successful in this course. If you are having great difficulty in completing this then you need to review the content of chapters !" to continue on and have a successful e#perience. $lease give it your best shot%
A solution solution to this problem is not available $or your re$erence by design" 1t is time $or you to to complete a problem on on your own" 4he $ollowing check $igures are provided% -nad5usted 4rial 6alance Ad5usted 4rial 4rial 6alance Net 1ncome 4otal Assets Post0Closing 4rial 6alance
7&(&8!( 7&(!&9) 7&:;+) 78!!+( 78!;;(
1
Comprehensive Accounting Cycle Review Problem uality Automotive" Automotive" 4he $ollowing in$ormation about #ecember?s transactions accounts and ad5ustment data is available"
4ransactions
#ec"
& =illiamson contributed 7)(((( cash to the business in e3change $or capital"
& &
Purchased 7&( 7&(@(( o$ euipment paying cash" Paid 7;)(( $or a 80month insurance policy starting on #ecember &"
8
Paid 7&@((( cash to purchase land to be used in operations"
&( &8
Purchased o$$ice supplies on account account 7:(((" 6orrowed 7!@ ((( $rom the bank $or business use" use" =illiamson signed a note payable to the bank in the name o$ the business"
!!
Paid 7@(( $or advertising e3penses"
!+ !@ :&
Paid 7& 7&((( on account" 4he business received a bill $or utilities to be paid in 'anuary 'anuar y 7!@(" Revenues earned during the month included 7&9 7&9)(( cash and 7! 7!9(( on account"
:&
Paid employeesB salaries 7:+(( and building rent 79((" Record as a compound entry"
:&
4he business received 7& 7&;;( $or auto screening services to be per$ormed ne3t month"
:&
=illiamson withdrew cash o$ 7:((( "
Accounts Cash Accounts Receivable C <$$ice SuppliesC Prepaid 1nsuranceC EuipmentC Accumulated Cash 2and Accounts PayableC -tilities Payable Payable 1nterest Payable -nearned RevenueC Notes Payable Payable #epreciation0EuipmentC 2and =illiamson Capital Capital =illiamson =illiamson =ithdrawals Service Revenue Revenue Salaries E3pense E3pense Rent E3pense pense -tilities E3 E 3pense pense Advertising E3penseC Supplies E3 E3pense pense 1nsurance E3 E3pense pense 1nterest E3pense E3pense and #epreciation E3pense0Euipment" Ad5ustment #ata a" <$$ice Supplies used during the month month $600. month $180. b. #epreciation $or the month c.
d. Accrued 1nterest E3pense E3pense $75.
&e'uirements: Complete the following on the attached work papers
s" &" Prepare the 5ournal entries and post to the 40account 40accounts 2. Prepare an unad5usted trial balance" 3.
Prepare the ad5usting entries and post to the 40accounts"
4.
Prepare an ad5usted trial balance" Prepare the income statement statement the statement o$ owner Bs euity euity and a classi$ied balance sheet " -se proper $ormatting techniues including headings dollar signs and underlining"
5. 6
.
7.
Prepare the closing entries and post to the 40accounts" Prepare a post0closing trial balance"
2
GENE GE NERA RAL L JOUR JOURNA NAL L DATE
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
Record Transact Transactions, ions, Adjusting Adjusting Entries, Entries, Closing Entries Entries in this journal journal
Dec 1
Dec 1
Dec 1
Dec "
Dec 10
Dec 1"
Dec 22
Dec 2.
Dec 28
Dec %1
Dec %1
Dec %1
Cash Williamson, Capital Owners contribution contribution Equipment Ca Cash Purchased equipment with cash Prepaid insurance Cash Prepaid insurance with cash !or " months #and Cash Purchased land with cash O$ce supplies &ccounts pa'able Purchased o$ce supplies on account Cash (otes pa'able )ecei*ed ban+ loan &d*er d*erttisin isin e-pen pense Cash Purchased ad*ertisin with cash &ccounts pa'able Cash Paid on accounts pa'able with cash /tilities e-pense /tilities pa'able )ecord !uture e-pense Cash &ccounts recei*able er*ice re*enue )ecei*ed pa'ments on earned re*enue alaries e-pense )ent e-pense Cash Paid salaries and rent with cash Cash /nearned re*enue )ecei*ed cash !or !uture ser*ice
%
50,000 50,000 10,800 10,800 ,500 ,500 18,000 18,000 %,000 %,000 28,000 28,000 800 80 0 800 1,000 1,000 280 280 1,500 2,00 20,200 %,.00 00 ,%00 1,0 1,0
GENERAL JOURNAL DATE Dec %1
&
C
D
Dec %1
Dec %1
Dec %1
Dec %1
ACCOUNT TITLES AND EXPLANATION Williamson withdrawal Cash Owners withdrawal
DEBIT %,000
upplies e-pense O$ce supplies )ecord o$ce supplies used
.00
Depreciation e-pense3 equipment &ccumulated depreciation 4 equipment )ecord depreciation on equipment
180
nsurance e-pense Prepaid insurance )ecord one month insurance e-pense
500
nterest e-pense nterest pa'able &ccrual interest
5
er*ice )e*enue ncome ummar' Close er*ice )e*enue ncome ummar' Depreciation E-pense /tilities E-pense alaries E-pense )ent E-pense upplies E-pense nsurance E-pense &d*ertisin E-pense nterest E-pense Close E-pense &ccounts ncome ummar' Williams, Williams, Capital Close ncome ummar' Williams, Williams, Capital Williams, withdrawals Close owners withdrawals
20,200
CREDIT %,000
.00
180
500
5
20,200 .%5 180 280 %.00 00 .00 500 800 5 1%,.5 1%,.5 %,000 %,000
GENERAL LEDGER
ash
!ccts. "ec
#$$ice %upp&ies
Dec 1 50,000 10,800 Dec 1 ,500 500 C
Dec %1 2,00
Dec 10 %,000
Dec 1" 28,000 ,000
,500 Dec "
al 200
al 2,00
Dec %1 1,500
18,000 Dec 10
Dec %1 1,0
'repaid (nsurance .00 &
Dec 1
al
800 Dec 22 1000 Dec 2. %00 Dec %1 %,000 Dec %1
al 5,50
Equipment
&ccum6 Deprec6 4 Equip6
Dec 1 10,800 1,000 %,000 Dec 10
#and
180
al 10,800
&ccounts Pa'able
Dec " 18,000 180 bal
Dec 2.
al 18,000
2,000 al
)ti&ities 'ayab&e
(nterest 'ayab&e
280 ec 28
)nearned "e*enue 75
+otes 'ayab&e,-i&&iamson
1/440 ec 31
280 al
5 al
28/000 ec 1
1,0 al
28,000 al
apita&,-i&&iamson &osing 3/000
50/000 ec 1
1%,.5 closin
-ithdraa&s ec 31 3/000
%er*ice "e*enue
3/000 c&osing
&osing 20/200
al 0
%a&aries pense
20/200 ec 31
al 0
al 0 .0,.5 al
5
ec 31 3/600
3/600 c&osing
"ent pense ec 31 700
700 c&osing
al 0
al 0 0 al
ec 28 280
!d*ertising pense
280 c&osing
ec 22 800
al 0
(nsurance pense C 500
)ti&ities pense
(nterest pense
500 closi closin n E-p .,%5 20,200 )e*
800 c&osing
al 0
D 5
al 0
al 0
.
! 600
600 c&osing
al 0
epreciation p. uip. 5 closi closin n
%upp&ies pense
180
(ncome %ummary 180 closin closin
closin 1%,.5
Unadjusted Trial Balance
&ccount Cash &ccounts recei*able O$ce supplies Prepaid insurance Equipment #and &ccounts pa'able /tilities pa'able /nearned re*enue (otes pa'able Williamson, Williamson, Capital Williamson, withdrawal er*ice re*enue alaries e-pense )ent e-pense &d*ertisin e-pense /tilities e-pense 7otal 7otal
Debits 5,50 2,00 %,000 ,500 10,800 18,000
Credits
2000 280 1,0 28,000 50,000 %,000 20,200 %,.00 00 800 280 101,"20
101,"20
Adjusted Trial Balance
&ccount Cash &ccount recei*able O$ce supplies Equipment &ccumulated &ccumulated Depreciation3 Depreciation3 equipment #and &ccounts pa'able nterest pa'able /tilities pa'able /nearned re*enue (otes pa'able Williamson, Williamson, Capital Williamson, withdrawal er*ice re*enue )ent e-pense alaries e-pense upplies e-pense nsurance e-pense nterest e-pense &d*ertisin e-pense /tilities e-pense Depreciation e-pense3 equipment 7otal 7otal
Debits 5,50 2,00 200 10,800
Credits
180 18,000 2,000 5 280 1,0 28,000 50,000 %,000 20,200 00 %,.00 .00 500 5 800 280 180 102,15
8
102,15
illia!s "ualit# Aut$!$ti%e Aut$!$ti%e Dec &'
&ccount )e*enue er*ice )e*enue )e*enue E-pense nsurance e-pense alaries e-pense )ent e-pense /tilities e-pense &d*ertisin e-pense upplies e-pense nterest e-pense Depreciation e-pense 7otal 7otal (et income
Debit
Credit 20,200
500 %,.00 00 280 800 .00 5 180 .%5 1%,.5
illia!s "ualit# Aut$!$ti%e Dec &' State!ent $( C)an*es in O+ner,s E-uit#
&ccount Williamson, Williamson, Capital Dec 1 Contribution (et income 7otal 7otal Withdrawals Williamson, Williamson, Capital Dec %1
&mount 0 50,000 1%,.5 .%,.5 %,0009 .0,.5
"
&sset Cash &ccounts recei*able O$ce supplies Prepaid Prepaid nsurance Equipment &ccumulated Dep3 equip6 #and 7otal 7otal assets
#iabilities illia!s "ualit# Aut$!$ti%e &ccounts pa'able Dec /tilities &' 2,00 pa'able 2,00 nterest nterest pa'able Balance S)eet ,000 /nearned re*enue (otes pa'able 1809 10,.20 7otal liabilities liabilitie s Williamson, Williamson, Capital Dec %1 7otal liabilities liabilities and owner:s owner:s equit'
10
2,000 280 5 1,0
.0,.5 "2,2.0
P$st.Cl$sin* Trial Balance
&ccount
Debits 5,50 2,00 2,00 ,000 10,800
Cash &ccounts recei*able O$ce supplies Prepaid insurance Equipment &ccumulated depreciation 4 equipment #and &ccounts pa'able /tilities pa'able nterest pa'able /nearned re*enue Williamson, Williamson, Capital (otes pa'able 7otal 7otal
Credits
180 18,000
"2,0
11
2,000 280 5 1,0 .0,.5 28,000 "2,0