Applying the Entire Accounting Cycle Rhoades Tax Services began business on December 1, 2018. Its December transactions are as follows.
| Applying the Entire Accounting Cycle Rhoades Tax Services began business on December 1, 2018. Its December transactions are as follows. | Dec. | 1 | Rhoades invested $20,000 in the business in exchange for common stock. | | | 2 | Paid $1,200 cash for December rent to Bomba Realty. | | | 2 | Purchased $1,080 of supplies on account. | | | 3 | Purchased $9,500 of office equipment; paying $4,700 cash with the balance due in 30 days. | | | 8 | Paid $1,080 cash on account for supplies purchased December 2. | | | 14 | Paid $900 cash for assistant's wages for 2 weeks' work. | | | 20 | Performed consulting services for $3,000 cash. | | | 28 | Paid $900 cash for assistant's wages for 2 weeks' work. | | | 30 | Billed clients $7,200 for December consulting services. | | | 31 | Paid $1,800 cash for dividends. | - Supplies available at December 31 are $710.
- Accrued wages payable at December 31 are $270.
- Depreciation for December is $120.
- Rhoades has spent 30 hours on an involved tax fraud case during December. When completed in January, his work will be billed at $75 per hour. (It uses the account Fees Receivable to reflect amounts earned but not yet billed.) Then post adjusting entries to their T-accounts.
Required 
   
| | |
Required a (2). Record any adjusting entries using the financial statement effects template. Income Statement Balance Sheet Transaction Cash Asset + Noncash Assets - Contra-Assets = Liabilities 1 $ 0 $ 0 $ 0 $ 0 + Contributed Capital + Earned Capital $ 0 $ 0 Revenues Expenses $ 0 = Net Income $ 0 $ 0 2 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0 0 TOTALS 0 0- 0 = 0 + 0 0 0 0 = 0 e. Journalize the adjusting entries at December 31 in journal entry form, drawing on the information above. Then post adjusting entries to their T-accounts and prepare an adjusted trial balance at December 31, 2018. GENERAL JOURNAL Description Date Debit Credit 12/31 1 $ 0 $ 0 0 0 To record December supplies expense. 12/312 0 0 0 0 To record unpaid wages at December 31. 12/313 0 0 0 0 To record December depreciation. 12/314 0 0 0 0 To record unbilled service revenue. Depreciation Expense Supplies Expense Unadj. Bal. Accumulated Depreciation (XA) Unadj. Bal. 1 0 0 2 0 0 1 0 0 Unadj. Bal. 1 2 0 0 2 0 0 0 0 3 0 0 3 0 0 3 0 0 0 4 0 0 4 0 0 4 0 0 0 0 0 Adj. Bal. 0 0 Adj. Bal. 5 Adj. Bal. 5 0 0 0 0 5 0 0 6 0 0 6 0 0 6 0 0 Final Bal. 0 0 Final Bal. 0 0 Final Bal. 0 0 Wages Expense (E) 1,800 Rent Expense (E) 1,200 Common Stock (SE) 20,000 Unadj. Bal. 1 Unadj. Bal. 1 Unadj. Bal. 1 0 0 0 0 0 0 2 0 0 2 0 0 2 0 0 3 0 0 3 0 3 0 0 4 0 0 4 0 0 4 0 0 0 0 0 0 Adj. Bal. 0 0 Adj. Bal. 5 Adj. Bal. 5 0 0 0 0 5 0 0 6 0 0 6 0 0 6 0 0 Final Bal. 0 0 Final Bal. 0 0 Final Bal. 0 0 Wages Payable (L) Unadj. Bal. 1 Retained Earnings (SE) 1,800 0 Unadj. Bal. 1 0 0 0 0 0 2 0 0 2 0 2 3 4 0 0 3 0 2. 3 4 3 0 0 0 0 0 0 0 0 0 0 Adj. Bal. 5 Adj. Bal. 5 0 0 0 0 0 6 6 0 Final Bal. 0 Final Bal. 0 0 0 0 0 0 0 RHOADES TAX SERVICES Adjusted Trial Balance For the Month of December 31, 2018 Debit Credit Cash $ 0 $ Fees Receivable Supplies 0 Office Equipment Accumulated Depreciation 0 Accounts Payable 0 Wages Payable 0 Common Stock 0 Retained Earnings 0 Consulting Revenue Supplies Expense 0 Wages Expense 0 Rent Expense Depreciation Expense 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 f. Prepare a December 2018 income statement and statement of stockholders' equity, and a December 31, 2018, balance sheet. 0 RHOADES TAX SERVICES Income Statement For the Month of December 31, 2018 Revenue Consulting Revenue $ Expenses: Wages Expense $ 0 Rent Expense 0 Supplies Expense 0 Depreciation Expense 0 Total Expenses Net Income $ 0 0 RHOADES TAX SERVICES Statement of Stockholders' Equity December 31, 2018 CommonStock TotalRetainedEarnings Stockholders'Equity Balance at December 1, 2015 $ 0 $ 0 $ 0 0 0 0 Stock Issuance Dividends (enter as negative) 0 0 0 Net Income 0 0 0 Balance at December 31, 2015 $ 0 $ 0 $ 0 Assets . $ > $ 0 RHOADES TAX SERVICES Balance Sheet December 31, 2018 Liabilities and Equity 0 o Wages Payable 0 Total Liabilities 0 Stockholders' Equity 0 Fees Receivable Supplies Total Current Assets 0 0 $ 0 Less Accum. Depreciation 0 0 0 Total Assets $ Total Liabilities and Stockholders' Equity 5 0 g. Record its closing entries in journal entry form. Post these entries to their T-accounts above in parte. GENERAL JOURNAL Description Debit Credit Date 12/315 $ 0 $ 0 0 0 To close the revenue account. 12/316 0 0 0 Wages Expense 0 0 Rent Expense Supplies Expense O O o oo To close the expense accounts. h. Prepare a post-closing trial balance at December 31, 2018. RHOADES TAX SERVICES Post-Closing Trial Balance December 31, 2018 Debit 5 Fees Receivable Credit Cash 0 $ 0 0 0 0 O O O O O Supplies Office Equipment Accumulated Depreciation Accounts Payable Wages Payable Retained Earnings Common Stock 0 O o O O 0 0 0 $ 0 $ 0
