ACCOUNTING CYCLE NAME:

SOLE PROPRIETORSHIP

ALLEN COMPANY

Directions

Complete the entire accounting cycle for Allen Company. The nine steps are listed below.

• Steps 1-3 take place daily. These three steps should be repeated, in order, each time a transaction takes place during the period.
• Steps 4-9 take place at the end of the period. These steps should be completed, in order, after the period is over.

Daily

Step 1: Analyze transactions

Step 2: Journalize

Step 3: Post

End of Period

Step 4: Unadjusted trial balance

Step 5: Adjusting entries

Step 6: Adjusted trial balance

Step 7: Financial statements

Step 8: Closing entries

Step 9: Post-closing trial balance

The working papers for this problem begin on the next page.

ALLEN COMPANY

On April 1, Lydia Allen started Allen Company. The company was organized as a sole proprietorship and has a monthly accounting period. The following transactions occurred during the companys first month.

Apr. 1 Lydia Allen invested $42,000 cash in the company.

Apr. 1 The company paid $30,000 cash for equipment.

Apr. 1 The company paid $1,300 cash to rent office space for April.

Apr. 1 The company paid $1,008 cash for the premium on a 12-month insurance policy. Coverage begins on April 1.

Apr. 5 The company purchased $197 of supplies on account.

Apr. 10 The company provided $1,570 in services to a customer. The customer must pay within 30 days.

Apr. 14 The company paid $910 cash for employee salary.

Apr. 24 The company provided services to a customer and immediately received $7,400 cash.

Apr. 28 The company paid $910 cash for employee salary.

Apr. 30 Lydia Allen withdrew $575 cash from the company for personal use.

The companys chart of accounts follows:

CHART OF ACCOUNTS
ASSETS	WITHDRAWALS
Cash	Owner Drawings
Accounts Receivable
Supplies	REVENUES
Prepaid Insurance	Service Revenue
Equipment
Accumulated Depreciation-Equipment	EXPENSES
	Salaries Expense
LIABILITIES	Rent Expense
Accounts Payable	Supplies Expense
Salaries Payable	Insurance Expense
	Depreciation Expense-Equipment
EQUITY
Owner Capital	CLEARING
	Income Summary

Adjustment Information

1. As of April 30, one month of insurance coverage has expired.
2. Depreciation on the companys equipment for April is $450.
3. As of April 30, the company has $79 of supplies remaining.
4. As of April 30, the company has incurred $182 of unpaid and unrecorded salary.

P.S this is a accounting course. There was more charts needed to fill out all of the info but wouldn't allow me to upload such a long problem. Please help