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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

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