BC500 Corporate Financial Reporting Introductory Project Journal Entry & Financial Statement Preparation Listed below are transactions of Zane Bowens new start-up business, since opening his leadership consulting business in September 20X1. Mr. Bowen needs some assistance in preparing journal entries and financial statements for his first four months of operation in preparation to establish financial records to see how hes performing the first few months. Sept. 1 McDaniel begins a business as a Leadership Consultant and invests $40,000 cash Sept. 2 Purchases furniture & fixtures and computer equipment on account from Green Jacket Co. for $8,500 and $3,500 respectively, 5 year / 3 year useful life, straight line method. Sept. 4 Pays rent for office space, $700 for the month. Sept. 4 Employs a receptionist, Michael Jones. Sept. 5 Purchases office supplies for cash $942. Sept. 8 Receive cash of $1,700 from customers for services performed. Sept. 10 Pays miscellaneous office expenses, $450. Sept. 14 Bills customers $5,800 for services performed. Sept. 18 Pays Green Jacket Co. on account, $3,600. Sept. 19 Withdraws $2,000 cash from the business for personal use. Sept. 20 Receives $1,000 from customers on account. Sept. 25 Bills customers $2,150 for services performed. Sept. 30 Pays the following expenses in cash. Salaries and wages $1,500; miscellaneous office expenses $125. Sept. 30 Office Supplies used during September, $230 Sept. 30 Receives $120 in interest income on deposit accounts. Sept. 30 Reserve for Uncollected Receivables of $500 Sept. 30 Prepares Closing Entries for Sept. Oct. 1 Purchases office equipment w/ cash for 2,400, 5 year useful life, straight line method. Oct. 2 Pays rent for office space, $700 for the month. Oct. 5 Receives $500 from customers on account. Oct. 5 Purchases office supplies for cash $338. Oct. 8 Receive cash of $1,500 from customers for services performed. Oct. 10 Pays miscellaneous office expenses, $530. Oct. 12 Bills customers $5,575 for services performed. Oct. 15 Pays Green Jacket Co. on account, $3,500. Oct. 15 Withdraws $3,000 cash from the business for personal use. Oct. 20 Receives $1,250 from customers on account. Oct. 25 Bills customers $4,000 for services performed. Oct. 30 Pays the following expenses in cash. Salaries and wages $1,500; miscellaneous office expenses $225; Travel Expenses $776. Oct. 31 Office Supplies used during September, $325 Oct. 31 Receives $35 interest income on deposit accounts. Oct. 31 Reserve for Uncollectible Accounts of $750 Oct. 31 Accounts deemed uncollectible of $150 Oct. 31 Prepares Closing Entries for Oct. Nov. 1 Maintenance on equipment of $125, paid w/ cash. Nov. 1 Invests in Research & Development / Innovation Session $2,500 on account Nov. 2 Pays rent for office space, $700 for the month. Nov. 5 Receives $2,500 from customers on account. Nov. 5 Purchases office supplies for cash $325. Nov. 8 Receive cash of $2,500 from customers for services performed. Nov. 10 Pays miscellaneous office expenses, $130. Nov. 12 Bills customers $5,250 for services performed. Nov. 15 Pays Green Jacket Co. remaining balance. Nov. 15 Withdraws $2,500 cash from the business for personal use. Nov. 20 Receives $8,750 from customers on account. Nov. 25 Bills customers $5,875 for services performed. Nov. 30 Pays the following expenses in cash. Salaries and wages $1,500; miscellaneous office expenses $125. Nov. 30 Office Supplies used during September, $520 Nov. 30 Receives $38 interest income on deposit accounts. Nov. 30 Reserve for Uncollectible Accounts of $1,250 Nov. 30 Accounts deemed uncollectible of $750 Nov. 30 Prepares Closing Entries for Nov. Dec. 1 Maintenance on equipment of $55, paid on account. Dec. 1 Invests in Research & Development with other consultants of $1,200 on account Dec. 1 Pays $1,000 on R&D payable. Dec. 2 Pays rent for office space, $700 for the month. Dec. 5 Receives $3,700 from customers on account. Dec. 5 Purchases office supplies for cash $325. Dec. 8 Receive cash of $3,750 from customers for services performed. Dec. 10 Pays miscellaneous office expenses, $175. Dec. 12 Bills customers $5,500 for services performed. Dec. 20 Receives $5,750 from customers on account. Dec. 24 Bills customers $4,125 for services performed. Dec. 30 Pays the following expenses in cash. Salaries and wages $1,900; miscellaneous office expenses $450. Dec. 31 Office Supplies used during December, $475 Dec. 31 Receives $23 interest income on deposit accounts. Dec. 31 Reserve for Uncollectible Accounts of $1,575 Dec. 31 Accounts deemed uncollectible of $250 Dec. 31 Prepares Closing Entries for Dec. Instructions: (a) Enter the transactions shown above in appropriate general ledger accounts (i.e. T-Accounts). Use the following ledger accounts: Cash, Accounts Receivable, Allowance for Uncollectible A/R, Supplies, Equipment, Accumulated Depreciation Equipment, Accounts Payable, Owners Capital, Revenue, Interest Income, Salaries/Wages Expense, Rent Expense, Repairs & Maintenance Exp, Research & Development Expense, Office Expenses, Supplies Expense, Depreciation Expense, Bad Debt Expense, and other applicable accounts. (b) Prepare a trial balance for each month-end cutoff. (c) Prepare a Balance Sheet for each month-end, an Income Statement for each month-end, a Statement of Owners Equity for each month-end, and a Statement of Cash Flows for year-end only. Ans.