Nancy Nanny opened a child-care facility on January 1, Year 1. Use the Chart of Accounts below
Question:
Nancy Nanny opened a child-care facility on January 1, Year 1. Use the Chart of Accounts below to complete the requirements on the following pages for Nancy Nanny Child Care.
NANCY NANNY CHILD CARE?Year 1
Q1 The following transactions occurred during Year 1. the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits.
NANCY NANNY CHII D CARE??YEAR 1
Q2 At the end of Year 1. Nancy Nanny made the following adjusting journal entries. Record each adjusting entry in proper journal entry format below using debits and credits.
NANCY NANNY CHILD CARE?Year 1
Q3 Post the Transaction Journal Entries from Q1 and the Adjusting Journal Entries from Q2 to the General Ledger below.
Q4 Compute the ending balance for each account.
NANCY NANNY CHILD CARE??Year 1
Use the ending balances computed in the General Ledger to prepare the Adjusted Trial Balance below.
NANCY NANNY CHILD CARE??Year 1
Use amounts from the Adjusted Trial Balance to prepare the Income Statement and the Statement of Stockholders? Equity. Use the forms provided below.
NANCY NANNY CHILD CARE?Year 1
Q7 Use amounts from the General Ledger, Adjusted Trial Balance. and the Statement of Stockholders' Equity to prepare the Balance Sheet and the Statement of Cash Flows. Use the forms provided below.
NANCY NANNY CHILD CARE ??Year 1
Q8 Use amounts from the Adjusted Trial Balance to prepare Closing Journal Entries and the Post-Closing Trial Balance. Use the forms provided below.
NANCY NANNY CHILD CARE CHART OF ACCOUNTS 110 Cash 120 Accounts receivable 130 Note receivable 135 Interest receivable 140 Supply inventory 150 Prepaid rent 170 171 Accumulated depreciation-PPE Property, plant, and equipment 210 Accounts payable 220 Notes payable 230 Interest payable 240 Unearned revenue 310 Common stock 320 330 Dividends 510 520 530 540 550 560 Retained earnings 410 Revenue 420 Interest revenue Cost of goods sold Depreciation expense Rent expense Supply expense Wage expense Interest expense Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts Debit Credit TJE #1 On January 2, Nancy Nanny received $100,000 in cash from investors in exchange for shares of Nancy Nanny common stock. Jan 2 Cash 100,000 Common stock 100,000 TJE #2 On January 2, Nancy Nanny paid $30,000 for a two-year lease of the building. The prepaid rent account was used to record this entry. Jan 2 TJE #3 On February 1, Nancy Nanny purchased tables, chairs, cots, and other furniture for $18,000. $5,000 was paid in cash with the balance on a note payable due in one year bearing 12% annual interest. This furniture has an estimated useful life of five years and is depreciated monthly using the straight-line method with no expected residual value. Feb 1 TJE #4 On February 1, Nancy Nanny purchased supplies at a cost of $40,000. Paid cash. Feb 1 TJE #5 During Year 1, Nancy Nanny provided child-care services on account totaling $150,000. Year 1 TJE #6 During Year 1, collections from receivable customers totaled $146,000. Year 1 TJE #7 During Year 1, paid employees $70,000. Year 1 Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts AJE #1 Record rent expense for the year. (Refer to TJE #2.) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to TJE #3.) AJE #3 Record interest expense for the year. (Refer to TJE #3.) Debit Credit AJE #4 At the end of the first year, Nancy Nanny had $6,000 of supplies still on hand that had not been used. (Refer to TJE #4.) 110 Cash 120 Accounts Receivable 140 Supply Inventory 150 Prepaid Rent 170 PPE Nancy Nanny Child Care GENERAL LEDGER-Year 1 220 Notes Payable 230 Interest Payable 171 Accumulated Depreciation-PPE NANCY NANNY CHILD CARE-Year 1 310 Common Stock 320 Retained Earnings 330 Dividends Income Summary 410 Revenue 520 Depreciation Expense 530 Rent Expense 540 Supply Expense 550 Wage Expense 560 Interest Expense No. 110 120 140 150 170 171 220 230 310 410 520 530 540 550 560 Nancy Nanny Child Care ADJUSTED TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Notes payable Interest payable Common stock Revenue Depreciation expense Rent expense Supply expense Wage expense Interest expense Total Debit $ 101,000 $267,730 Credit Revenue Operating expenses: Total operating expense Operating income Nonoperating expenses: Net income Nancy Nanny Child Care INCOME STATEMENT-Year 1 Balance, January 1, Year 1 Stock issued Net income Dividends Balance, December 31, Year 1 Nancy Nanny Child Care STATEMENT OF STOCKHOLDERS' EQUITY—Year 1 Common Stock $ $ -O- Retained Earnings $ -0- $ $ $ 122,300 26,270 Total SEquity -0- ASSETS Cash Property, plant, and equipment Accumulated depreciation-PPE Total assets LIABILITIES Nancy Nanny Child Care BALANCE SHEET-Year 1 Total liabilities STOCKHOLDERS' EQUITY Total stockholders' equity Total liabilities and stockholders' equity $ ( $ 101,000 $ 14,700 140,700 Nancy Nanny Child Care STATEMENT OF CASH FLOWS-Year 1 CASH FROM OPERATING ACTIVITIES Cash from customers Rent paid Cash paid for supplies Wages paid Net cash from operating activities CASH FROM INVESTING ACTIVITIES Cash paid for property, plant, and equipment CASH FROM FINANCING ACTIVITIES Cash from issuing common stock Net change in cash Beginning cash balance Ending cash balance $ 146,000 ( ( ( ) -) $ tA ( $ + 14 -0- $ 101,000 Nancy Nanny Child Care-GENERAL JOURNAL-Year 1 Debit Date Accounts CJE #1 Close all revenue and gain accounts to income summary. Dec 31 Income summary CJE #2 Close all expense and loss accounts to income summary. Income summary CJE #3 Close the income summary account to retained earnings. CJE #4 Close the dividends account to retained earnings. Retained earnings Dividends 123,730 -0- Credit 150,000 -0- No. 110 120 140 150 170 171 220 230 310 320 Nancy Nanny Child Care-POST-CLOSING TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Note payable Interest payable Common stock Retained earnings Total Debit $ 101,000 $ 144,000 Credit NANCY NANNY CHILD CARE CHART OF ACCOUNTS 110 Cash 120 Accounts receivable 130 Note receivable 135 Interest receivable 140 Supply inventory 150 Prepaid rent 170 171 Accumulated depreciation-PPE Property, plant, and equipment 210 Accounts payable 220 Notes payable 230 Interest payable 240 Unearned revenue 310 Common stock 320 330 Dividends 510 520 530 540 550 560 Retained earnings 410 Revenue 420 Interest revenue Cost of goods sold Depreciation expense Rent expense Supply expense Wage expense Interest expense Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts Debit Credit TJE #1 On January 2, Nancy Nanny received $100,000 in cash from investors in exchange for shares of Nancy Nanny common stock. Jan 2 Cash 100,000 Common stock 100,000 TJE #2 On January 2, Nancy Nanny paid $30,000 for a two-year lease of the building. The prepaid rent account was used to record this entry. Jan 2 TJE #3 On February 1, Nancy Nanny purchased tables, chairs, cots, and other furniture for $18,000. $5,000 was paid in cash with the balance on a note payable due in one year bearing 12% annual interest. This furniture has an estimated useful life of five years and is depreciated monthly using the straight-line method with no expected residual value. Feb 1 TJE #4 On February 1, Nancy Nanny purchased supplies at a cost of $40,000. Paid cash. Feb 1 TJE #5 During Year 1, Nancy Nanny provided child-care services on account totaling $150,000. Year 1 TJE #6 During Year 1, collections from receivable customers totaled $146,000. Year 1 TJE #7 During Year 1, paid employees $70,000. Year 1 Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts AJE #1 Record rent expense for the year. (Refer to TJE #2.) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to TJE #3.) AJE #3 Record interest expense for the year. (Refer to TJE #3.) Debit Credit AJE #4 At the end of the first year, Nancy Nanny had $6,000 of supplies still on hand that had not been used. (Refer to TJE #4.) 110 Cash 120 Accounts Receivable 140 Supply Inventory 150 Prepaid Rent 170 PPE Nancy Nanny Child Care GENERAL LEDGER-Year 1 220 Notes Payable 230 Interest Payable 171 Accumulated Depreciation-PPE NANCY NANNY CHILD CARE-Year 1 310 Common Stock 320 Retained Earnings 330 Dividends Income Summary 410 Revenue 520 Depreciation Expense 530 Rent Expense 540 Supply Expense 550 Wage Expense 560 Interest Expense No. 110 120 140 150 170 171 220 230 310 410 520 530 540 550 560 Nancy Nanny Child Care ADJUSTED TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Notes payable Interest payable Common stock Revenue Depreciation expense Rent expense Supply expense Wage expense Interest expense Total Debit $ 101,000 $267,730 Credit Revenue Operating expenses: Total operating expense Operating income Nonoperating expenses: Net income Nancy Nanny Child Care INCOME STATEMENT-Year 1 Balance, January 1, Year 1 Stock issued Net income Dividends Balance, December 31, Year 1 Nancy Nanny Child Care STATEMENT OF STOCKHOLDERS' EQUITY—Year 1 Common Stock $ $ -O- Retained Earnings $ -0- $ $ $ 122,300 26,270 Total SEquity -0- ASSETS Cash Property, plant, and equipment Accumulated depreciation-PPE Total assets LIABILITIES Nancy Nanny Child Care BALANCE SHEET-Year 1 Total liabilities STOCKHOLDERS' EQUITY Total stockholders' equity Total liabilities and stockholders' equity $ ( $ 101,000 $ 14,700 140,700 Nancy Nanny Child Care STATEMENT OF CASH FLOWS-Year 1 CASH FROM OPERATING ACTIVITIES Cash from customers Rent paid Cash paid for supplies Wages paid Net cash from operating activities CASH FROM INVESTING ACTIVITIES Cash paid for property, plant, and equipment CASH FROM FINANCING ACTIVITIES Cash from issuing common stock Net change in cash Beginning cash balance Ending cash balance $ 146,000 ( ( ( ) -) $ tA ( $ + 14 -0- $ 101,000 Nancy Nanny Child Care-GENERAL JOURNAL-Year 1 Debit Date Accounts CJE #1 Close all revenue and gain accounts to income summary. Dec 31 Income summary CJE #2 Close all expense and loss accounts to income summary. Income summary CJE #3 Close the income summary account to retained earnings. CJE #4 Close the dividends account to retained earnings. Retained earnings Dividends 123,730 -0- Credit 150,000 -0- No. 110 120 140 150 170 171 220 230 310 320 Nancy Nanny Child Care-POST-CLOSING TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Note payable Interest payable Common stock Retained earnings Total Debit $ 101,000 $ 144,000 Credit
Expert Answer:
Accounting cycle Accounting cycle is the collective process of identifying and recording the transactions in journals and posting them in respective ledger accounts It also includes preparing unadjust... View the full answer
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
Students also viewed these accounting questions
-
A created a trust on January 1 Year 1. A appointed his Child(1) as Trustee of the trust. Under the terms of the trust, during As lifetime, Child 1 could distribute income or principal to any of As 3...
-
On January 1, Year 1, Courier Inc. purchased new equipment that had a total cost (including shipping and installation) of $85,000. The equipment is expected to have a useful life of four years or to...
-
1. (2 points) Prove or disprove that the sum of any even integer and any odd integer is odd.
-
You want to conduct a study on commuters in NYC and how muchtime they spend traveling to and from work every day. You decide towait outside the subway stations from Monday to Friday, 9am to 5pm,and...
-
What is a unique identifier of an entity type? Is it possible for there to be more than one unique identifier for an entity type?
-
The article "Some Field Experience in the Use of an Accelerated Method in Estimating 28-Day Strength of Concrete" (J. of Amer. Concrete Institute, 1969: 895) considered regressing y = 28day...
-
Nancy Carpenter Optical Dispensary purchased supplies on account for \($1,200\). Two weeks later, the business paid half on account. Requirements 1. Journalize the two transactions for Nancy...
-
For the following purchases of merchandise, determine the amount of cash to bepaid: Total Invoice Cr Credit Terms Amount of Freight Ivice Returs andDate PurchaseDate Purchase Charges Amount...
-
The advantage of marketing for strong markets Mention two advantages Support the advantages with examples Briefly explain or apply your knowledge on an example using either local or international...
-
A wood beam reinforced by an aluminum channel section is shown in the figure. The beam has a cross section of dimensions 150 mm by 250 mm, and the channel has a uniform thickness of 6 mm. If the...
-
Let's say you purchase an AAA-rated, 10% coupon, 20-year maturity, $1000 par value corporate bond today for $1085. You hold it for 5 years, re-invest the semi-annual coupons at 5% per year and sell...
-
Which of the following is an inappropriate description of management's role in preparing financial statements and reports on internal control over financial re- porting? Management has the primary...
-
Assurance services involve all the following except: a. Improving the quality of information for decision purposes. b. Improving the quality of the decision model used. c. Improving the relevance of...
-
In which way did the public accounting profession bring about the problems that resulted in Congress passing the Sarbanes-Oxley Act of 2002? a. Failed to detect material financial statement frauds b....
-
All of the following are parts of corporate governance except: a. Oversight of management by the board of directors. b. Established processes to provide accountability back to stockholders. c....
-
All of the following require an audit communication to a third-party except: a. A review of financial statements of a nonpublic company. b. An attestation to the quality of a company's internal...
-
The following information about a network of related activities has been provided (times estimated in weeks): Activity Immediate predecessor(s) Optimistic Most Probable Pessimistic A None 4 6 10 B...
-
A summary of changes in Pen Corporation's Investment in Sam account from January 1, 2011, to December 31, 2013, follows (in thousands): ADDITIONAL INFORMATION 1. Pen acquired its 80 percent interest...
-
b) Imagine starting with an empty binary search tree (BST) whose nodes have characters for keys, and adding the letters in the word "FACETIOUSLY" to the tree in that order. i. ii. iii. iv. Show the...
-
The 2010 statement of cash flows for the Andell Company, as developed by its bookkeeper, is shown here: You determine that the amounts of the items listed on the statement are correct, but in certain...
-
On January 1, 2010, the Somerville Corporation sold a used truck to the Cornelius Company and accepted a $28,000 non-interest-bearing note due January 1, 2013. Somerville carried the truck on its...
-
Generally accepted accounting principles identify two narrow criteria that must be met in order for an event or a transaction to be classified as an extraordinary item. Required 1. Identify and...
-
United Technologies Corporation (UTC), based in Hartford, Connecticut, owns a wide variety of companies that operate in different businesses and industries. Some of the companies in UTCs portfolio...
-
How does the auditors professional duty of confidence affect disclosures to third parties?
-
When can auditors disclose unlawful acts to the police?
Study smarter with the SolutionInn App