Question
Accounting #1 The Accounting Cycle Through the Closing Process 1.Stephen opens his own bookkeeping business and invests $50,000 cash to get started. 2.Stephen purchases a
Accounting #1 The Accounting Cycle Through the Closing Process
1.Stephen opens his own bookkeeping business and invests $50,000 cash to get started.
2.Stephen purchases a new computer and printer that costs $3500 in cash.
3.Stephen rents an office building for $1000 a month and pays 6 months in advance.
4.Stephen buys office furniture for his new office for a total of $5000 on account.
5.Stephen purchases insurance for his business and pays $2000 for the full year.
6.Stephen purchases office supplies in the amount of $1000 cash.
7.Stephen is open for business and sees his first client for bookkeeping services in the amount of $3000 and bills the client.
8.Stephen sees a client and receives a check in the amount of $10,000 for work to be completed later.
9.Stephen receives his first cable/internet bill in the amount of $150.
10. Stephen performs an audit on a client and receives $2000 in cash.
11. Stephen purchases a new car for his business with $3000 cash and a note for $25,000.
12. Stephen completes $3000 worth of work for the client on the 8th.
13. Stephen receives a bill in the mail for telephone services in the amount of $200.
14. Stephen hired an office assistant and paid her first pay check in the amount of $800.
15. Stephen takes a potential client out to dinner and spends $150.
16. Stephen completes tax work for client in the amount of $1000 sends them a bill.
17. Stephen receives payment in amount of $1500 from the client on the 7th
18. Stephen pays his cable/internet bill.
19. Stephen pays his telephone bill
20. Stephen pays himself a Salary of $3000
21. Stephen pays dividends in the amount of $200
22. Stephen completed more work for client on the 8thin the amount of $4000.
A.Complete a Trial Balance
B.Stephen completes his month end adjusting entries on January 31st.
takes inventory and finds that he has $200 left in Supplies.
The computer equipment he purchased has a salvage value of $500 and a life of 3 years
The furniture he purchased has a salvage value of $1000 and a life of 5 years
Review original transactions. Record any Defer expenses. (hint these are prepaid)
The Auto has a salvage value of $3000 and an expected life (units of output) to be 100,000 miles. Stephen drove 1200 miles this month.
Stephen did work for a client but did not yet bill them in the amount of $2000.
Stephen had the office cleaned and has not yet received the bill for $200.
This month ends of a Tuesday and Stephen needs to Accrue wages to be paid next month in the amount of $300.
C. Complete the Financial Statements from the Adjusted Trial Balance
D. Complete the closing process
Journal Entries
Post to T Accounts
E. Prepare a Post-Closing Trial Balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started