Closing Entries and the Postclosing Trial Ba 9. Prepare a balance sheet using the report form. 10. Journalize and post the adjusting entries. 11. Journalize and post the closing entries. 12. Prepare a postclosing trial balance. Analyze: Compare the January 31 balance sheet you prepared with the December 31 bala shown in Figure 6.4. a. What changes occurred in total assets, liabilities, and the owner's ending capital? 5. What changes occurred in the Cash and Accounts Receivable accounts? C. Has there been an improvement in the firm's financial position? Why or why not? TIC Mini-Practice Set 1 Service Business Accounting Cycle Eli's Consulting Services This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Eli's Consulting Services for the month of January 2020 Assume that you are the chief accountant for Eli's Consulting Services. During January, the busi- ness will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Eli's Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January TION Eli's Consulting Services Chart of Accounts Revenue Assets 401 Fees Income 101 Cash 111 Accounts Receivable Expenses 121 Supplies 511 Salaries Expense 134 Prepaid Insurance 514 Utilities Expense 137 Prepaid Rent 517 Supplies Expense 141 Equipment 520 Rent Expense 142 Accumulated Depreciation--Equipment 523 Depreciation Expense-Equipment Liabilities 526 Advertising Expense 202 Accounts Payable 529 Maintenance Expense Owner's Equity 532 Telephone Expense 301 Trayton Eli, Capital 535 Insurance Expense 302 Trayton Eli, Drawing 309 Income Summary 1. Open the general ledger accounts and enter the balances for January 1, 2020. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 2019, which appears in Figure 6.3. 2. Analyze each transaction and record it in the general journal. Use page 3 to begin January's transactions 3. Post the transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet. 5. Prepare the Adjustments section of the worksheet. a. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. b. Compute and record the adjustment for expired insurance for the month. c. Record the adjustment for one month of expired rent of $4,000. d. Record the adjustment for depreciation of S183 on the old equipment for the first adjustment for sinerini Closing Entries and the Postclosing Trial Ba 9. Prepare a balance sheet using the report form. 10. Journalize and post the adjusting entries. 11. Journalize and post the closing entries. 12. Prepare a postclosing trial balance. Analyze: Compare the January 31 balance sheet you prepared with the December 31 bala shown in Figure 6.4. a. What changes occurred in total assets, liabilities, and the owner's ending capital? 5. What changes occurred in the Cash and Accounts Receivable accounts? C. Has there been an improvement in the firm's financial position? Why or why not? TIC Mini-Practice Set 1 Service Business Accounting Cycle Eli's Consulting Services This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Eli's Consulting Services for the month of January 2020 Assume that you are the chief accountant for Eli's Consulting Services. During January, the busi- ness will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Eli's Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January TION Eli's Consulting Services Chart of Accounts Revenue Assets 401 Fees Income 101 Cash 111 Accounts Receivable Expenses 121 Supplies 511 Salaries Expense 134 Prepaid Insurance 514 Utilities Expense 137 Prepaid Rent 517 Supplies Expense 141 Equipment 520 Rent Expense 142 Accumulated Depreciation--Equipment 523 Depreciation Expense-Equipment Liabilities 526 Advertising Expense 202 Accounts Payable 529 Maintenance Expense Owner's Equity 532 Telephone Expense 301 Trayton Eli, Capital 535 Insurance Expense 302 Trayton Eli, Drawing 309 Income Summary 1. Open the general ledger accounts and enter the balances for January 1, 2020. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 2019, which appears in Figure 6.3. 2. Analyze each transaction and record it in the general journal. Use page 3 to begin January's transactions 3. Post the transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet. 5. Prepare the Adjustments section of the worksheet. a. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. b. Compute and record the adjustment for expired insurance for the month. c. Record the adjustment for one month of expired rent of $4,000. d. Record the adjustment for depreciation of S183 on the old equipment for the first adjustment for sinerini
