1 The Accounting Cycle During the period (8pts) Following is a complete list of accounts and account balances that appear in the general ledger as of December 31, 2019 for the Blue Box Travel Co Assume all accounts have their normal debit or credit balance Account Amount Account Amount Cash $ 108,540 Common Stock $ 4,000 Accounts Receivable (A R) $ 83,120 Additional Paid In Capital $ 38,000 Prepaid Rent $ 4,300 Retained Earnings $ 326,770 Equipment $ 525,000 Service Revenue $0 Accumulated Depreciation Equipment $ 50,000 Wages Expense $0 Accounts Payable (A P) $ 77,120 Interest Expense $0 Deferred Revenue $ 17,070 Depreciation Expense $0 Interest Payable $ 8,000 Rent Expense $0 Notes Payable $ 200,000 Utilities Expense $0 The following transactions were identified during January 2020 Date Transaction 1 9 Received $18,400 in cash from customers on their accounts receivable 1 13 Paid $22,950 in cash to creditors on accounts payable 1 16 Provided $30,000 worth of services to customers $5,000 was paid for in cash by customers, the remaining $25,000 was purchased by customers on account 1 17 Received $18,000 cash in advance from customers for travel services to be provided in February 1 25 Paid $1,425 in cash for utilities used in January 1 28 Prepaid rent in advance for February 2020 in the amount of $4,300 in cash PART A (5pts) Record all of the above transactions that occurred during the period using journal entries Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry Do not make any end of the period adjusting or closing entries PART B (3pts) After recording the above transactions, calculate the ending balance that would appear on the January 31, 2020 unadjusted trial balance for the following accounts You must show your work, such as a formula or T account used to arrive at your answer Cash A R A P 2 The Accounting Cycle End of the period (7pts) The Rosebud Motel, Inc has prepared its unadjusted trial balance as of 12 31 2020 and is now ready to make its adjusting entries at the end of its annual accounting period Assume all accounts have their normal debit or credit balance The following additional information was gathered at December 31, 2020, the end of the firms annual accounting period Assume Rosebud Motel uses an annual accounting period and all adjustments and adjusting entries are made only at the end of each annual accounting period (i e AJEs are only made on December 31 st ) No adjusting entries have been made yet for the year ending December 31, 2020 related to the below items On 1 1 2020, the beginning balance of the Supplies account was $3,940 During 2020, Rosebud Motel purchased $18,945 worth of additional supplies A physical count of supplies indicates that there are only $5,180 worth of supplies remaining on hand as of 12 31 2020 On September 29 th , 2020, a customer paid $3,200 in advance for four months (i e $800 per month) of extended stay at the motel to begin October 1, 2020 through January 31, 2021 Rosebud Motel records this as Deferred Revenue on 9 29 at the time the customer paid cash Rosebud Motel purchased a building for $250,000 on October 1, 2013, which was recorded as Building The building has $0 salvage value and has an estimated useful life of 25 years Rosebud Motel uses the straight line depreciation method to allocate the cost of the building evenly over its 25 year useful life On May 1 st , 2020, Rosebud Motel borrowed $48,000 from the local bank, signing a note payable This note is due in 8 years and has an annual interest rate of 6 5 Rosebud pays interest every April 30 th and the first interest payment is due on April 30 th , 2021 On January 1 st , 2020, Rosebud Motel prepaid $72,000 in cash for a three year insurance policy, covering the period of January 1 st , 2020 December 31, 2023 The firm recorded this as Prepaid Insurance on 1 1 2020 PART A Record Adjusting Journal Entries (AJEs) 5pts Record the AJEs related to the information above that Rosebud would make on 12 31 2020 Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry You must show all of your work on calculations to receive full credit PART B Calculate adjusted Net Income for 2020 1pts In its unadjusted trial balance, as of 12 31 2020, the total of all revenue account balances for the 2020 annual accounting period was $591,422 and the total of all expense account balances for the 2020 annual accounting period was $486,420 Calculate the amount of Net Income that Rosebud Motel would report on its Income Statement for the year ended December 31 st , 2020 You must show all of your work on calculations to receive full credit PART C Calculating Net Book Value 1pt Calculate the net book value of the building that would be reported on the classified Balance Sheet as of 12 31 2020 You must show all of your work on calculations to receive full credit 3 The End of the Accounting Cycle prepare the financial statements (7pts) The adjusted trial balance for Dunder Miflin, Inc as of March 31 st , 2020 is given below Dunder Miflin Adjusted Trial Balance As of 3 31 2020 Account DEBIT CREDIT Cash $ 19,041 Accounts Receivable $ 16,911 Prepaid Rent $ 1,582 Short Term Investments $ 4,044 Equipment $ 35,500 Accumulated Depreciation Equipment $ 14,200 Land $ 49,200 Goodwill $ 60,840 Accounts Payable $ 8,427 Wages Payable $ 1,290 Interest Payable $ 60 Notes Payable $ 24,000 Common Stock $ 2,400 Additional Paid In Capital $ 29,444 Retained Earnings $ 91,117 Service Revenue $ 67,422 Investment Revenue $ 53 Wages Expense $ 41,375 Utilities Expense $ 1,638 Interest Expense $ 180 Depreciation Expense $ 7,100 Rent Expense $ 932 Dividends $ 70 $ 238,413 $ 238,413 Using the adjusted trial balance provided above for Dunder Miflin, prepare the following financial statements PART A (3pts) Income statement for the period ended March 31 st , 2020 PART B (4pts) Classified balance sheet as of March 31 st , 2020 Assume no additional stock was issued during the period and $70 in dividends were declared and paid in cash during the period

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1. The Accounting Cycle - During the period (8pts): Following is a complete list of accounts and account balances that appear in the general ledger

1. The Accounting Cycle - During the period (8pts): Following is a complete list of accounts and account balances that appear in the general ledger as of December 31, 2019 for the Blue Box Travel Co. Assume all accounts have their normal debit or credit balance.

Account:	Amount:	Account:	Amount:
Cash	$ 108,540	Common Stock	$ 4,000
Accounts Receivable (A/R)	$ 83,120	Additional Paid-In Capital	$ 38,000
Prepaid Rent	$ 4,300	Retained Earnings	$ 326,770
Equipment	$ 525,000	Service Revenue	$0
Accumulated Depreciation-Equipment	$ 50,000	Wages Expense	$0
Accounts Payable (A/P)	$ 77,120	Interest Expense	$0
Deferred Revenue	$ 17,070	Depreciation Expense	$0
Interest Payable	$ 8,000	Rent Expense	$0
Notes Payable	$ 200,000	Utilities Expense	$0

The following transactions were identified during January 2020:

Date:	Transaction:
1/9	Received $18,400 in cash from customers on their accounts receivable.
1/13	Paid $22,950 in cash to creditors on accounts payable.
1/16	Provided $30,000 worth of services to customers. $5,000 was paid for in cash by customers, the remaining $25,000 was purchased by customers on account.
1/17	Received $18,000 cash in advance from customers for travel services to be provided in February.
1/25	Paid $1,425 in cash for utilities used in January.
1/28	Prepaid rent in advance for February 2020 in the amount of $4,300 in cash.

PART A (5pts): Record all of the above transactions that occurred during the period using journal entries. Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry. Do not make any end of the period adjusting or closing entries.

PART B (3pts): After recording the above transactions, calculate the ending balance that would appear on the January 31, 2020 unadjusted trial balance for the following accounts. You must show your work, such as a formula or T-account used to arrive at your answer.

Cash
A/R
A/P

2. The Accounting Cycle – End of the period (7pts): The Rosebud Motel, Inc has prepared its unadjusted trial balance as of 12/31/2020 and is now ready to make its adjusting entries at the end of its annual accounting period. Assume all accounts have their normal debit or credit balance.

The following additional information was gathered at December 31, 2020, the end of the firm’s annual accounting period. Assume Rosebud Motel uses an annual accounting period and all adjustments and adjusting entries are made only at the end of each annual accounting period (i.e. AJEs are only made on December 31^st). No adjusting entries have been made yet for the year ending December 31, 2020 related to the below items:

On 1/1/2020, the beginning balance of the Supplies account was $3,940. During 2020, Rosebud Motel purchased $18,945 worth of additional supplies. A physical count of supplies indicates that there are only $5,180 worth of supplies remaining on hand as of 12/31/2020.
On September 29^th, 2020, a customer paid $3,200 in advance for four months (i.e. $800 per month) of extended stay at the motel to begin October 1, 2020 through January 31, 2021. Rosebud Motel records this as Deferred Revenue on 9/29 at the time the customer paid cash.
Rosebud Motel purchased a building for $250,000 on October 1, 2013, which was recorded as Building. The building has $0 salvage value and has an estimated useful life of 25 years. Rosebud Motel uses the straight-line depreciation method to allocate the cost of the building evenly over its 25-year useful life.
On May 1^st, 2020, Rosebud Motel borrowed $48,000 from the local bank, signing a note payable. This note is due in 8 years and has an annual interest rate of 6.5%. Rosebud pays interest every April 30^th and the first interest payment is due on April 30^th, 2021.
On January 1^st, 2020, Rosebud Motel prepaid $72,000 in cash for a three-year insurance policy, covering the period of January 1^st, 2020 – December 31, 2023. The firm recorded this as Prepaid Insurance on 1/1/2020.

PART A: Record Adjusting Journal Entries (AJEs) – 5pts: Record the AJEs related to the information above that Rosebud would make on 12/31/2020. Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry. You must show all of your work on calculations to receive full credit.

PART B: Calculate adjusted Net Income for 2020 – 1pts: In its unadjusted trial balance, as of 12/31/2020, the total of all revenue account balances for the 2020 annual accounting period was $591,422 and the total of all expense account balances for the 2020 annual accounting period was $486,420. Calculate the amount of Net Income that Rosebud Motel would report on its Income Statement for the year ended December 31^st, 2020. You must show all of your work on calculations to receive full credit.

PART C: Calculating Net Book Value – 1pt: Calculate the net book value of the building that would be reported on the classified Balance Sheet as of 12/31/2020. You must show all of your work on calculations to receive full credit.

3. The End of the Accounting Cycle – prepare the financial statements (7pts): The adjusted trial balance for Dunder-Miflin, Inc. as of March 31^st, 2020 is given below:

Dunder-Miflin
Adjusted Trial Balance
As of 3/31/2020

Account:	DEBIT:	CREDIT:
Cash	$ 19,041
Accounts Receivable	$ 16,911
Prepaid Rent	$ 1,582
Short Term Investments	$ 4,044
Equipment	$ 35,500
Accumulated Depreciation - Equipment		$ 14,200
Land	$ 49,200
Goodwill	$ 60,840
Accounts Payable		$ 8,427
Wages Payable		$ 1,290
Interest Payable		$ 60
Notes Payable		$ 24,000
Common Stock		$ 2,400
Additional Paid In Capital		$ 29,444
Retained Earnings		$ 91,117
Service Revenue		$ 67,422
Investment Revenue		$ 53
Wages Expense	$ 41,375
Utilities Expense	$ 1,638
Interest Expense	$ 180
Depreciation Expense	$ 7,100
Rent Expense	$ 932
Dividends	$ 70
	$ 238,413	$ 238,413

Using the adjusted trial balance provided above for Dunder-Miflin, prepare the following financial statements:

PART A (3pts): Income statement for the period ended March 31^st, 2020.

PART B (4pts): Classified balance sheet as of March 31^st, 2020. Assume no additional stock was issued during the period and $70 in dividends were declared and paid in cash during the period.