Accounting Cycle Practice Set The intention of this Practice Set is to review all the steps in the accounting cycle. The steps are below. 1 Analyze the Prepare the post- closing entries and post to the general 7. Prepare the on the adjusted The Steps in the Accounting Cycle 3. Post the the journal to the balance 6. Prepare the balance 5. Journal 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 101 AccountName Cash Accounts Receivable Supplies Accounts Payable 102 201 301 B. Morales, Capital 302 401 B. Morales, Drawing Service Revenue 501 Rent Expense 502 503 504 Supplies Expense Advertising Expense Usities 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 Bob rents space for his shop and paid $500 for rent Date 6/01/2020 6/02/2020 6/03/2020 6/10/2020 Bob purchased supplies for the shop and paid cash of $2,000. Bob took out an ad in Bikers Weekly, a local magazine, for $200 which will be paid next month 6/22/2020 6/30/2020 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 ACC111 Accounting Principles I Accounting Cycle Practice Set Practice Set Part A: 1. Using the chart of accounts, open the accounts in the general ledger. In addition to the accounts in the chart of accounts, make sure that you open the income summary account as the last account, number 600. 2. Record the journal entries for the June transactions using General Journal Page 1. Make sure that you include explanations 3. Post the entries to the general ledger. When you post your entries to the general ledger, use J1 to indicate General Journal page 1 in the ref column. 4. Calculate the balances in the general ledger accounts.