ACC111 Accounting Principles I Accounting Cycle Practice Set The intention of this Practice Set is to review all the steps in the accounting cycle. The steps are below. Prepare the post- closing trial balance 1. Analyze the 2. Joumalize the 8. Journalize the closing entries and post to the general ledger 7. Prepare the financial statements from the adjusted trial balance The Steps in the Accounting Cycle 3. Post the transactions fron the joumal to the general ledger 4. Prepare the balance 6. Prepare the adjusted tal balance 5. Joumalize adjusting journal entries and post to the general ledger Practice Set: Bob Morales owns a company called Road Rash Motorcycle Repair Shop. You have been hired by Bob as his bookkeeper. After talking to Bob, you prepare his chart of accounts: Road Rash Motorcycle Repair Shop Chart of Accounts Account Name Accounts Receivable Account 101 Cash 102 103 Supplies 201 301 302 401 501 502 503 504 Accounts Payable B. Morales, Capital B. Morales, Drawing Service Revenue Rent Expense Supplies Expense Advertising Expense Utilities Expense The first month of business for Road Rash Motorcycle Repair Shop is June 2020, and the transactions are: Transaction Bob opened the bank account and deposited $5,000 for his capital contribution. Date 6/01/2020 6/02/2020 6/03/2020 6/10/2020 Bob rents space for his shop and paid $500 for rent Bob purchased supplies for the shop and paid cash of $2.000. 6/22/2020 6/30/2020 Bob took out an ad in Bikers Weekly, a local magazine, for $200 which will be paid next month. Bob repaired a motorcycle for a customer. The customer paid cash of $1,200. Bob transferred $500 to his personal bank account from the business bank account. Practice Set Instructions Page 1