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3 COMPREHENSIVE PROBLEM OJB Company began business in January, 2016. The following transactions occurred in February, 2016: Feb 1 Purchased supplies on account, $ 400.

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3 COMPREHENSIVE PROBLEM OJB Company began business in January, 2016. The following transactions occurred in February, 2016: Feb 1 Purchased supplies on account, $ 400. 2 Received cash from customers on account, $ 1,750. Paid $ 400 on account. 5 Paid technician $ 750 in salary, including the amount owed at the end of January. 8 Billed customers for services provided on account, $ 3,200. 11 Paid cash for advertising on a local website, $ 300. 12 Received $ 3,875 cash for fees earned for jobs completed. 16 Paid electricity bill for the month, $ 290. 17 Received $ 8,200 cash for fees earned for jobs completed. 19 Paid technician $ 750 in salary. 20 Billed customers for services provided on account, $ 6,100. 22 Received cash from customers on account, $ 9,500. 25 Paid phone bill for the month, $ 120. 26 Received cash from customers as an advance payment for technical support services to be provided in the future, $ 2,500. 27 Billed customers for services provided on account, $ 3,900. 28 Received cash from customers on account, $ 5,100. 28 OJB withdrew $8,000 for personal use. INSTRUCTIONS: 1. The chart of accounts and the post-closing trial balance as of January 31, 2016 are given. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the ledger. Date the balances February 1, 2016, and place a check mark () in the Posting Reference column. Journalize each of the March transactions in the journal provided using OJB Company's chart of accounts. (Do not insert the account numbers in the journal at this time). 2. Post the journal to the ledger. 3. Prepare an unadjusted trial balance. 4. At the end of March, the following adjustment data were assembled. Use this data to complete instructions ( 5 ) and (6): a. Supplies on hand were $ 600. b. Rent expired during the month was $ 1,600. c. Unearned fees at the end of the month were $ 2,000. d. Insurance expired during the month was $ 300. e. Accrued salaries payable were $ 240. f. Depreciation on equipment during the month was $ 330. 5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet/worksheet and complete the worksheet. 6. Journalize and post the adjusting entries. 7. Prepare an adjusted trial balance. 8. Prepare an Income Statement, Statement of Owner's Equity, and Balance Sheet 9. Record and post the closing entries. Income Summary is account #33 in the chart of accounts. Indicate closed accounts in the ledger by inserting a line in both of the Balance columns opposite each closing entry. Focus OJB COMPANY SERVICE CHART OF ACCOUNTS 11 Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees OJB, Capital OJB, Drawing Income Summary Fees Earned Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Miscellaneous Expense 31 32 52 53 OJB COMPANY POST-CLOSING TRIAL BALANCE JANUARY 31, 2016 DEBIT CREDIT Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees OJB, Capital 22,100 3,400 1,350 3,200 1,500 14,500 DS1500 14500 . 330 800 120 2,500 42,300 re 46,050 46,050

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