220 Chapter 4 Comptesng the Accounting Cycle Obj. 4.5 8. Net Income 551.775 PR 4-5B Complete accounting cycle For the past Wed quarters and to operate the business which was to be home several years, Jeff Horton has operated part-time coming business of April 1. 2018, Jell decided to move to rented quarters and to opera follow nown as Rosebud Consulting on a full-time basi Rosebud entered into 1. The following received from Jeff Horton in exchange for common w e accounts rece no liabilities 5 1400 supplies 1.300 and office equipment, $12,000. There exchange for common stock cash $20,000 Paid three montrent on a lease rental contract, 50.000 2 Paid the premiums on property and casualty insurance policies. 54.100 and feel. 59,400. cred cash from clients as an advance payment for services to be provided and recorded Purchased additional office equipment on account from Smith Office Supply Co. 54.000 & Received cash from clients en account, $11,700 10. Paid cash for a newspaper advertisement. $350. Paid Smith Mee Supply Co. for part of the debt incurred on April 5. 56,400 12. Recorded services provided on account for the period April 1-12, 521,900 14. Paldi receptionist for two weeks'salary, 51.650. Recond the following transactions on Rage 2 of the journal 17. Recorded cash from cash clients for fees earned during the period April 1-16.50,000 18 Paid cash for supplies. $725. 20. Recorded services provided on account for the period April 13-20.5 10.800 24. Recorded cash from cash clients for fees earned for the period April 17-24, 54450 26. Received cash from clients on account,526,500 27. Paid receptionist for two weeks'salary: $1,650 29. Paid telephone bill for April 5540. 30. Paid electricity bill for April 5760. 30. Recorded cash from cash clients for fees eamed for the period April 25-30, 55,160. 30. Recorded services provided on account for the remainder of April $2.590. 30 Paid dividends $18.000 Instructions 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 11 31 Common Stock Cash 12 Accounts Receivable 32 Retained Earnings 14 Supplies 33 Dividends 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 18 Office Equipment 52 Supplies Expense 19 Accumulated Depreciation 53 Rent Expense 21 Accounts Payable 54 Depreciation Expense 22 Salaries Payable 55 Insurance Expense 23 Unearned Fees 59 Miscellaneous Expense 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (A) Insurance expired during April is $350. (B) Supplies on hand on April 30 are $1,225. C) Depreciation of office equipment for April is $400. (D) Accrued receptionist salary on April 30 is $275. (E) Rent expired during Aprilis 52,000. (F) Unearned fees on April 30 are $2,350. 221 Chapter 4 Completing the Accounting Cycle 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance. ng