Ch 6 Closing Process AC CO. ACTIVITIES AC Co. a service co. was formed on 4/1/2010, and the following activities happened in its first month of conducting business. Complete the following: Step 1 Analyze the company's transactions Step 2 Record Journal Entries Step 3 Post to the Ledger (T-Accounts) Step 4 Prepare the Unadjusted Trial Balance Step 5 Record Adjusting Journal Entries Step 6 Prepare the Adjusted Trial Balance Step 7 Prepare the Financial Statements Step 8 Record the Closing Journal Entries Step 9 Prepare the Post-Closing Trial Balance Company transactions: Apr 1 The owner invested $30,000 cash and computer equipment worth $20,000 into the co. Apr 2 The co. rented office space by paying $1,800 cash for the first month's rent. Apr 3 The co. purchased $1,000 of office supplies with cash. Apr 10 The co. paid $2,400 cash for a 12-month insurance policy. Coverage starts in April. Apr 14 The co. paid $1,600 cash to its employees for the first 2 weeks of salaries. Apr 24 The co. collected $8,000 cash from customers for commissions earned. Apr 26 The co. paid $1,600 cash to its employees for the last 2 weeks of salaries. Apr 27 The co, paid $350 cash for repairs to its computer. Apr 27 The co. paid $750 cash for April's telephone bill. Apr 28 The owner withdrew $1,500 cash for personal use. Company adjustments: Apr 30 Two thirds of one month's insurance coverage has been used. Round to dollars. Apr 30 At the end of month, only $600 of office supplies were left. Apr 30 The computer equipment's life is 3 years, salvage is $2,000. Book the depreciation. Apr 30 Employees worked on the last day of April earning $420. Accrue the salaries. Ch 6 Closing Process AC CO. JOURNAL ENTRIES Account and Description JE # Date Debit Credit Totals ACC 124 Principles of Accounting! Ch 6 Closing Process AC CO. ADJUSTING JOURNAL ENTRIES Account and Description AJE # Date Debit Credit Totals ACC 124 Principles of Accounting! Ch 6 Closing Process AC CO. CLOSING JOURNAL ENTRIES Account and Description Debit Credit CIE # Date Totals Ch 6 Closing Process AC CO. T-ACCOUNTS Name Ch 6 Closing Process AC CO. WORKSHEET 1 Date Unadjusted T/B Dr Cr Adjusting JE's Dr Cr Adjusted T/B Dr Cr Income Statement Dr Cr Balance Sheet Dr Cr No Account 101 Cash 106 Accounts receivable 124 Office supplies 128 Prepaid insurance 167 Computer equipment 168 Accumulated depreciation 209 Salaries payable 301 Capital 302 Withdrawals 405 Revenue 612 Depreciation expense 622 Salaries expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 684 Repairs expense 688 Telephone expense Totals Net profit: Ch 6 Closing Process AC CO. WORKSHEET 2 Adjusted T/B Dr Cr Closing JE's Dr Cr Post Closing T/B Dr Cr No Account 101 Cash 106 Accounts receivable 124 Office supplies 128 Prepaid insurance 167 Computer equipment 168 Accumulated depreciation 209 Salaries payable 301 Capital 302 Withdrawals 405 Revenue 612 Depreciation expense 622 Salaries expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 684 Repairs expense 688 Telephone expense 901 Income summary-rev 901 Income summary-exp 901 Income summary-clear Totals Ch 6 Closing Process AC CO. ACTIVITIES AC Co. a service co. was formed on 4/1/2010, and the following activities happened in its first month of conducting business. Complete the following: Step 1 Analyze the company's transactions Step 2 Record Journal Entries Step 3 Post to the Ledger (T-Accounts) Step 4 Prepare the Unadjusted Trial Balance Step 5 Record Adjusting Journal Entries Step 6 Prepare the Adjusted Trial Balance Step 7 Prepare the Financial Statements Step 8 Record the Closing Journal Entries Step 9 Prepare the Post-Closing Trial Balance Company transactions: Apr 1 The owner invested $30,000 cash and computer equipment worth $20,000 into the co. Apr 2 The co. rented office space by paying $1,800 cash for the first month's rent. Apr 3 The co. purchased $1,000 of office supplies with cash. Apr 10 The co. paid $2,400 cash for a 12-month insurance policy. Coverage starts in April. Apr 14 The co. paid $1,600 cash to its employees for the first 2 weeks of salaries. Apr 24 The co. collected $8,000 cash from customers for commissions earned. Apr 26 The co. paid $1,600 cash to its employees for the last 2 weeks of salaries. Apr 27 The co, paid $350 cash for repairs to its computer. Apr 27 The co. paid $750 cash for April's telephone bill. Apr 28 The owner withdrew $1,500 cash for personal use. Company adjustments: Apr 30 Two thirds of one month's insurance coverage has been used. Round to dollars. Apr 30 At the end of month, only $600 of office supplies were left. Apr 30 The computer equipment's life is 3 years, salvage is $2,000. Book the depreciation. Apr 30 Employees worked on the last day of April earning $420. Accrue the salaries. Ch 6 Closing Process AC CO. JOURNAL ENTRIES Account and Description JE # Date Debit Credit Totals ACC 124 Principles of Accounting! Ch 6 Closing Process AC CO. ADJUSTING JOURNAL ENTRIES Account and Description AJE # Date Debit Credit Totals ACC 124 Principles of Accounting! Ch 6 Closing Process AC CO. CLOSING JOURNAL ENTRIES Account and Description Debit Credit CIE # Date Totals Ch 6 Closing Process AC CO. T-ACCOUNTS Name Ch 6 Closing Process AC CO. WORKSHEET 1 Date Unadjusted T/B Dr Cr Adjusting JE's Dr Cr Adjusted T/B Dr Cr Income Statement Dr Cr Balance Sheet Dr Cr No Account 101 Cash 106 Accounts receivable 124 Office supplies 128 Prepaid insurance 167 Computer equipment 168 Accumulated depreciation 209 Salaries payable 301 Capital 302 Withdrawals 405 Revenue 612 Depreciation expense 622 Salaries expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 684 Repairs expense 688 Telephone expense Totals Net profit: Ch 6 Closing Process AC CO. WORKSHEET 2 Adjusted T/B Dr Cr Closing JE's Dr Cr Post Closing T/B Dr Cr No Account 101 Cash 106 Accounts receivable 124 Office supplies 128 Prepaid insurance 167 Computer equipment 168 Accumulated depreciation 209 Salaries payable 301 Capital 302 Withdrawals 405 Revenue 612 Depreciation expense 622 Salaries expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 684 Repairs expense 688 Telephone expense 901 Income summary-rev 901 Income summary-exp 901 Income summary-clear Totals