1. Sanchez Computer Center, continued. At the end of September, Tony took a complete inventory of his supplies and found the following: 5 dozen " screws at a cost of $8.00 a dozen 2 dozen " screws at a cost of $5.00 a dozen 2 cartons of computer inventory paper at a cost of $14 a carton 3 feet of coaxial cable at a cost of $4.00 per foot After speaking to his accountant, he found that a reasonable depreciation amount for each of his longterm assets is as follows: Computer purchased July 5, 201X Depreciation $33 a month Office equipment purchased July 17, 201X Depreciation $10 a month Computer workstations purchased Sept. 17, 201X Depreciation $20 a month Tony uses the straight-line method of depreciation and declares no salvage value for any of the assets. If any long-term asset is purchased in the rst 15 days of the month, he will charge depreciation for the full month. If an asset is purchased on the 16th of the month, or later, he will not charge depreciation in the month it was purchased. August and Septembers rent has now expired. Tasks Use your trial balance from the completed problem previously and the adjusting information given here to complete the worksheet for the three months ended September 30, 201X. From the worksheets, prepare the financial statements. Tony decided to end the Sanchez Computer Centers rst year as of September 30, 201X. Following is an updated chart of accounts. Chart of Accounts Assets Revenue 1000 Cash 4000 Service Revenue 1020 Accounts Receivable Expenses 1025 Prepaid Rent 5010 Advertising Expense 1030 Supplies 5020 Rent Expense 1080 Computer Shop Equipment 5030 Utilities Expense 1081 Accum. Depr. C. S. Equip. 5040 Phone Expense 1090 Office Equipment 5050 Supplies Expense 1091 Accum. Depr. Office Equip. 5060 Insurance Expense Liabilities 5070 Postage Expense 2000 Accounts Payable 5080 Depr. Exp. C. S. Equip. Owners Equity 5090 Depr. Exp. Office Equip. 3000 T. Freedman, Capital 3010 T. Freedman, Withdrawals 3020 Income Summary Complete the following: a. Journalize the adjusting entries. b. Post the adjusting entries to the ledger. c. Journalize the closing entries. d. Post the closing entries to the ledger. e. Prepare a post-closing trial balance. 2. As the bookkeeper of Parkers Plowing, you have been asked to complete the entire accounting cycle for Parker from the following information. 201X Jan. 1 Parker invested $14,000 cash and $9,000 worth of snow equipment into the plowing company. Jan. 1 Paid rent for five months in advance for garage space, $3,500. Jan. 4 Purchased office equipment on account from Liliis Corp., $12,600. Jan. 6 Purchased snow supplies for $500 cash. Jan. 8 Collected $15,000 from plowing local shopping centers. Jan. 12 Parker Muroney withdrew $5,000 from the business for his own personal use. Jan. 20 Plowed Holiday Co. parking lots, payment not to be received until March, $7,000. Jan. 26 Paid salaries to employees, $1,400. Jan. 28 Paid Liliis Corp. one-half amount owed for office equipment. Jan. 29 Advertising bill received from Carter Co. but will not be paid until March, $600. Jan. 30 Paid telephone bill, $200. Use the following chart of accounts. Chart of Accounts Assets Owner Equity 111 Cash 311 Parker Muroney, Capital 112 Accounts Receivable 312 Parker Muroney, Withdrawals 114 Prepaid Rent 313 Income Summary 115 Snow Supplies Revenue 121 Office Equipment 411 Plowing Fees 122 Accumulated Depreciation, Office Equipment Expenses 123 Snow Equipment 511 Salary Expense 124 Accumulated Depreciation, Snow Equipment 512 Advertising Expense Liabilities 513 Telephone Expense 211 Accounts Payable 514 Rent Expense 212 Salaries Payable 515 Snow Supplies Expense 516 Depreciation Expense, Office Equipment 517 Depreciation Expense, Snow Equipment From the following transactions as well as additional data, please complete the entire accounting cycle for Parkers Plowing (use the chart of accounts above) for 201X. 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, $6,000. Jan. 4 Purchased office equipment on account from Lumen Corp., $12,600. Jan. 6 Purchased snow supplies for $800 cash. Jan. 8 Collected $14,000 from plowing local shopping centers. Jan. 12 Parker Muroney withdrew $4,000 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, $1,900. 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. Adjustment Data a. Snow supplies on hand, $700. b. Rent expired, $1,000. c. Depreciation on office equipment, $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. 3. Todd Silver is the purchasing agent for Moore Co. One of his suppliers, Gem Co., offers Todd a free vacation to France if he buys at least 75% of Moores supplies from Gem Co. Todd, who is angry because Moore Co. has not given him a raise in over a year, is considering the offer. Write your recommendation to Todd. 4. Using the trial balance in Figure 18, and adjustment data of Kylers Moving Co., prepare a. A worksheet for the month of January. b. An income statement for January, a statement of owners equity for January, and a balance sheet as of January 31, 201X. Adjustment Data to Update Trial Balance a. Insurance expired, $450. b. Moving supplies on hand, $400. c. Depreciation on moving truck, $350. d. Wages earned but unpaid, $180. Kylers Moving Co. Trial Balance January 31, 201X Debits Credits A. Cash 11,000.00 B. Prepaid Insurance 1,800.00 C. Moving Supplies 1,000.00 D. Moving Truck 16,000.00 E. Accumulated Depreciation, Moving Truck 5,500.00 F. Accounts Payable 2,700.00 G. K. Hilton, Capital 19,228.00 H. K. Hilton, Withdrawal 1,300.00 I. Revenue from Moving 8,300.00 J. Wages Expense 3,150.00 K. Rent Expense 775.00 L. Advertising Expense 703.00 Totals 35,728.00 35,728.00