Casado and Associates Bookkeeping Services Process one complete accounting cycle Mariana Casado has bookkeeping business that provides bookkeeping services for small and medium businesses in the south Puget Sound area In addition to managing and working in her business, she also hires two employees another accountant (YOU) and an office manager The business rents a big office in a strip mall in Lakewood They hire out a cleaning service to keep the office clean, and they pay rent for their office space They depreciate all office equipment and furniture This business used the Allowance for Doubtful Accounts method to manage their receivables This business is a sole proprietorship The post closing trial balance for the bookkeeping business is as follows on December 31 st , 2020 As the accountant hired by Ms Casado, you need keep the books for the bookkeeping business You will do that by performing the following tasks Journalize all January 2021 transactions Post the transactions to the general ledger accounts Prepare the Trial Balance for January 2021 on the worksheet Record the following end of the month adjustments Adjusting Entries Adjust the supplies account An end of the period count (January 31st) shows the business has $3,650 of supplies on hand Record the adjustment for insurance expense for the month of January Record the rent expense for January in the amount of $4,000 Record the furniture and depreciation expense for January in the amount of $250 Write off A R in the amount of $2,400 (allowance method) Replenish The Allowance for doubtful accounts, so its balance is $3,000 Accrued 3,600 in wages January Journalize and post the closing entries Complete all columns of the worksheet provided for this project Prepare the Income Statement for the month of January Prepare the Statement of Owners equity for the month of January Prepare the Balance Sheet for the month of January Prepare a post closing trial balance January Transactions January day Transaction 4 Purchased a 1 year insurance policy for $6,240 with check 234 4 Purchased supplies for $5,600 Issued check 235 6 Collected $3,800 on account from credit customers 7 Returned damaged supplies in the amount of $530 8 Sold 6 months bookkeeping services for $32,600 to Antonia's Diner Of this amount, the client paid $10,000 with check 598, and CASADO issued credit for the remainder Work has not yet been performed 9 CASADO performed bookkeeping services to Antonia's Diner in the amount of $12,000 11 Bought radio slots from KIRO to advertise services locally, on account, for 2,780 12 Prepared a batch of 1099s for a construction client The service cost $4,900, of which $2,000 was paid by the customer with a check ( 1002), and the remainder was put on account 12 Collected $7,300 on account from credit customers 14 Issued check 236 to pay for the office cleaning in the amount of $1,050 15 Received a monthly telephone bill for $340 18 Sold bookkeeping services for $3,050, of which $2,000 was immediately collected 19 Purchased Supplies for $4,300 with check 237 20 Collected $3,000 on account from credit customers 20 Sold $13,560 in tax prep services that will be concluded in January On account 21 Purchased newspaper space for advertising on account for $2,500 22 Collected $3,600 on account 22 Purchased supplies for $490 Received an invoice 25 Issued check 238 to pay for utilities in the amount of $890 26 Sold tax preparation services for $2,600, of which everything has been collected 26 Purchased one additional computer for $380 on account 27 Prepared a batch of 1099s for a bakery chain client Services were provided for $6,400 on account 27 Issued check 238 to pay for supplies in the amount of $ 350 28 Collected $8,900 from clients on account 28 Issued check 238 to pay for maintenance services for January $680 29 Issued checks 239 and 240 to cover payroll These checks total $10,600 29 Issued check 241 for an owner's withdraw in the amount if $10,000 29 Purchased a new set of office furniture for $1,350 on credit 29 Expensed one month of insurance 29 Paid bills in the amount of $4,360 using check 242 29 Sold services for $3,600, of which $1,500 was paid Account Name Dec 31st Balances Dr Cr 227,107 6,530 327 1,030 Cash in Bank Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Prepaid Rent Furniture and equipment Accumulated depreciation FF E Accounts Payable Wages Payable Unearned Revenue Antonia CASADO, Capital Total 4,000 12,650 2,300 5,600 2,500 240,590 251,317 251,317 Account Name Dec 31st Balances Dr Cr 227,107 6,530 327 1,030 Cash in Bank Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Prepaid Rent Furniture and equipment Accumulated depreciation FF E Accounts Payable Wages Payable Unearned Revenue Antonia CASADO, Capital Total 4,000 12,650 2,300 5,600 2,500 240,590 251,317 251,317

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Casado and Associates Bookkeeping Services- Process one complete accounting cycle Mariana Casado has bookkeeping business that provides bookkeeping services for small and medium businesses in

Casado and Associates Bookkeeping Services- Process one complete accounting cycle

Mariana Casado has bookkeeping business that provides bookkeeping services for small and medium businesses in the south Puget Sound area. In addition to managing and working in her business, she also hires two employees: another accountant (YOU) and an office manager.

The business rents a big office in a strip mall in Lakewood. They hire out a cleaning service to keep the office clean, and they pay rent for their office space. They depreciate all office equipment and furniture. This business used the Allowance for Doubtful Accounts method to manage their receivables.

This business is a sole proprietorship. The post-closing trial balance for the bookkeeping business is as follows on December 31^st, 2020:

image text in transcribed

As the accountant hired by Ms. Casado, you need keep the books for the bookkeeping business. You will do that by performing the following tasks:

Journalize all January 2021 transactions
Post the transactions to the general ledger accounts
Prepare the Trial Balance for January 2021 on the worksheet
Record the following end of the month adjustments:

Adjusting Entries

Adjust the supplies account. An end of the period count (January 31st) shows the business has $3,650 of supplies on hand

Record the adjustment for insurance expense for the month of January

Record the rent expense for January in the amount of $4,000

Record the furniture and depreciation expense for January in the amount of $250

Write off A/R in the amount of $2,400 (allowance method)

Replenish The Allowance for doubtful accounts, so its balance is $3,000

Accrued 3,600 in wages January

Journalize and post the closing entries
Complete all columns of the worksheet provided for this project
Prepare the Income Statement for the month of January
Prepare the Statement of Owners equity for the month of January
Prepare the Balance Sheet for the month of January
Prepare a post-closing trial balance

January Transactions

January day	Transaction
4	Purchased a 1-year insurance policy for $6,240 with check# 234
4	Purchased supplies for $5,600. Issued check # 235
6	Collected $3,800 on account from credit customers
7	Returned damaged supplies in the amount of $530
8	Sold 6-months bookkeeping services for $32,600 to Antonia's Diner. Of this amount, the client paid $10,000 with check# 598, and CASADO issued credit for the remainder. Work has not yet been performed.
9	CASADO performed bookkeeping services to Antonia's Diner in the amount of $12,000
11	Bought radio slots from KIRO to advertise services locally, on account, for 2,780
12	Prepared a batch of 1099s for a construction client. The service cost $4,900, of which $2,000 was paid by the customer with a check (#1002), and the remainder was put on account
12	Collected $7,300 on account from credit customers
14	Issued check# 236 to pay for the office cleaning in the amount of $1,050
15	Received a monthly telephone bill for $340
18	Sold bookkeeping services for $3,050, of which $2,000 was immediately collected.
19	Purchased Supplies for $4,300 with check# 237
20	Collected $3,000 on account from credit customers
20	Sold $13,560 in tax prep services that will be concluded in January. On account.
21	Purchased newspaper space for advertising on account for $2,500
22	Collected $3,600 on account
22	Purchased supplies for $490. Received an invoice.
25	Issued check# 238 to pay for utilities in the amount of $890
26	Sold tax preparation services for $2,600, of which everything has been collected.
26	Purchased one additional computer for $380 on account
27	Prepared a batch of 1099s for a bakery chain client. Services were provided for $6,400 on account
27	Issued check# 238 to pay for supplies in the amount of $ 350
28	Collected $8,900 from clients on account
28	Issued check #238 to pay for maintenance services for January $680
29	Issued checks #239 and #240 to cover payroll. These checks total $10,600
29	Issued check# 241 for an owner's withdraw in the amount if $10,000
29	Purchased a new set of office furniture for $1,350 on credit.
29	Expensed one month of insurance
29	Paid bills in the amount of $4,360 using check#242
29	Sold services for $3,600, of which $1,500 was paid.

Account Name Dec 31st Balances Dr. Cr. 227,107 6,530 327 1,030 Cash in Bank Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Prepaid Rent Furniture and equipment Accumulated depreciation FF&E Accounts Payable Wages Payable Unearned Revenue- Antonia CASADO, Capital Total 4,000 12,650 2,300 5,600 2,500 240,590 251,317 251,317 Account Name Dec 31st Balances Dr. Cr. 227,107 6,530 327 1,030 Cash in Bank Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Prepaid Rent Furniture and equipment Accumulated depreciation FF&E Accounts Payable Wages Payable Unearned Revenue- Antonia CASADO, Capital Total 4,000 12,650 2,300 5,600 2,500 240,590 251,317 251,317