Complete Accounting Cycle For the past several years, Jeff Horton has operated a part time consulting business from his home As of April 1, 20Y6, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full time basis Rosebud entered into the following transactions during April Apr 1 The following assets were received from Jeff Horton in exchange for common stock cash, $20,000 accounts receivable, $14,700 supplies, $3,300 and office equipment, $12,000 There were no liabilities received 1 Paid three months rent on a lease rental contract, $6,000 2 Paid the premiums on property and casualty insurance policies, $4,200 4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400 5 Purchased additional office equipment on account from Smith Office Supply Co , $8,000 6 Received cash from clients on account, $11,700 10 Paid cash for a newspaper advertisement, $350 12 Paid Smith Office Supply Co for part of the debt incurred on April 5, $6,400 12 Recorded services provided on account for the period April 112, $21,900 14 Paid receptionist for two weeks salary, $1,650 Record the following transactions on Page 2 of the journal 17 Recorded cash from cash clients for fees earned during the period April 116, $6,600 18 Paid cash for supplies, $725 20 Recorded services provided on account for the period April 1320, $16,800 24 Recorded cash from cash clients for fees earned for the period April 1724, $4,450 26 Received cash from clients on account, $26,500 27 Paid receptionist for two weeks salary, $1,650 29 Paid telephone bill for April, $540 30 Paid electricity bill for April, $760 30 Recorded cash from cash clients for fees earned for the period April 2530, $5,160 30 Recorded services provided on account for the remainder of April, $2,590 30 Paid dividends, $18,000 Assets Current assets Cash 20,000 x Accounts receivable 14,700 x Supplies 3,300 x 6,000 x Prepaid rent Prepaid insurance 4,200 x Total current assets Property, plant, and equipment Accounts payable X Accumulated depreciation Total property, plant, and equipment Total assets JOURNAL PAGE 4 Date Account Title Post Ref Debit Credit 2016 Apr 30 Cash X Salary Expense 3,575 x Supplies Expense 2,800 x Rent Expense 2,000 X 400 x Depreciation Expense Insurance Expense 350 x Miscellaneous Expense 1,650 X Retained Earnings 10,775 X Apr 30 Retained Earnings Dividends Rosebud Consulting Statement of Stockholders' Equity For the Year Ended January 31, 20Y2 Common Retained Stock Earnings Balances, April 1, 2016 Total Issued common stock 50,000 50,000 x 50,000 Accounting numeric fiele Net income 2,660 X 2,660 X Dividends 18,000 X 18,000 18,000 Balances, April 30, 2016 $

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 31, 2024

Complete Accounting Cycle For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y6, Jeff

Complete Accounting Cycle

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y6, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud entered into the following transactions during April:

Apr. 1.		The following assets were received from Jeff Horton in exchange for common stock: cash, $20,000; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. There were no liabilities received.
1.		Paid three months rent on a lease rental contract, $6,000.
2.		Paid the premiums on property and casualty insurance policies, $4,200.
4.		Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.
5.		Purchased additional office equipment on account from Smith Office Supply Co., $8,000.
6.		Received cash from clients on account, $11,700.
10.		Paid cash for a newspaper advertisement, $350.
12.		Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.
12.		Recorded services provided on account for the period April 112, $21,900.
14.		Paid receptionist for two weeks salary, $1,650.

Record the following transactions on Page 2 of the journal:
17.		Recorded cash from cash clients for fees earned during the period April 116, $6,600.
18.		Paid cash for supplies, $725.
20.		Recorded services provided on account for the period April 1320, $16,800.
24.		Recorded cash from cash clients for fees earned for the period April 1724, $4,450.
26.		Received cash from clients on account, $26,500.
27.		Paid receptionist for two weeks salary, $1,650.
29.		Paid telephone bill for April, $540.
30.		Paid electricity bill for April, $760.
30.		Recorded cash from cash clients for fees earned for the period April 2530, $5,160.
30.		Recorded services provided on account for the remainder of April, $2,590.
30.		Paid dividends, $18,000.

Assets Current assets: Cash 20,000 x Accounts receivable 14,700 x Supplies 3,300 x 6,000 x Prepaid rent Prepaid insurance 4,200 x Total current assets Property, plant, and equipment: Accounts payable X Accumulated depreciation Total property, plant, and equipment Total assets JOURNAL PAGE 4 Date Account Title Post. Ref. Debit Credit 2016 Apr. 30 Cash X Salary Expense 3,575 x Supplies Expense 2,800 x Rent Expense 2,000 X 400 x Depreciation Expense Insurance Expense 350 x Miscellaneous Expense 1,650 X Retained Earnings 10,775 X Apr. 30 Retained Earnings Dividends Rosebud Consulting Statement of Stockholders' Equity For the Year Ended January 31, 20Y2 Common Retained Stock Earnings Balances, April 1, 2016 Total Issued common stock 50,000 50,000 x 50,000 Accounting numeric fiele Net income 2,660 X 2,660 X Dividends -18,000 X -18,000 -18,000 Balances, April 30, 2016 $