Complete accounting cycle Instruction Chart of Accounts Labels and Amount Descriptions Work Sheet Journal Ledger Instructions For the past several years, Stetty Lopez has operated a part-time consulting business from his home. As of Jay 1, 2072. Stetty decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the flowing actions during Jay 1 1 2 The following assets were received from Stoly Lopez in exchange for common stock cash, 513,000 accounts receivable, $20,800supplies. $3.200, and office equipment, 37.500. There were no abilities received Paid two months rent on a lease rental contract. $4.800 Paid the promiums on property and casualty Insurance policies, 54,860. Received cash from clients as an advance payment for services to be provided, and recorded it as uneamed fees, $5.000. Purchased additional office equipment on account from Office Station Co., 86,500 Received cash from clients on account. $15,000 4 5 6 Complete accounting cycle Instructions Chart of Accounts Labels and Amount Descriptions Work Sheet Journal Ledger Instructions 6 10 12 Received cash from clients on account, $15,000 Pald cash for a newspaper advertisement, $500, Paid Office Station Co. for part of the debt incurred on July 5, $5,200, Recorded services provided on account for the period July 1-12. $13,300 Paid receptionist for two weeks' salary, $1,800 12 14 Record the following transactions on Page 2 of the journal: Jul. 17 18 Recorded cash from cash clients for tees earned during the period July 1-17, $9,450. Paid cash for supplies, $600. Recorded services provided on account for the period July 13-20.$6,650. Recorded cash from cash clients for fees earned for the period July 17-24, $4,500. 20 24 Instructions Chart of Accounts Labels and Amount Descriptions Work Sheet Journal Ledger Instructions 24 necoluuu Lab Ton Uds! Cilent IOFIUS Udine Uru punod July 17-24, 94,000. 26 Received cash from clients on account, $12,000. 27 29 31 Paid receptionist for two weeks' salary, $1,800. Paid telephone bill for July, $325. Paid electricity bill for July $675. Recorded cash from cash clients for fees earned for the period July 25-31, $5,400. Recorded services provided on account for the remainder of July, $3,000. Paid dividends, $12,500. 31 31 31 1. 2. 3. 4. Required: Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Post the journal to a ledger of four-column accounts. Add the appropriate posting reference to the journal. Prepare an unadjusted trial balance. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). A. Insurance expired during July is $405. B. Supplies on hand on July 31 are $1,600. C. Depreciation of office equipment for July is $750. D. Accrued receptionist salary on July 31 is $180. E. Rent expired during July is $2,400. Complete accounting cycle Instructions Chart of Accounts Labels and Amount Descriptions Work Sheet Journal Ledger Instructions F. Uneamed foes earned on July 31, $2,500 5. (Optional) on your own paper or spreadsheet, enter the unadjusted trial balance on an end-of period work sheet and complete the work sheet. 6. A. Joumalize the adjusting entries on page 3 of the journal Adjusting entries are recorded on Juy 31. Refer to the Chart of Accounts for exact wording of account titles. B. Post the adjusting entries, inserting balances in the accounts affected 7. Prepare an adjusted trial balance. 8. A. Prepare an income statement for the month ended July 31, 2012 Be sure to completo the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons() on the income statement 8. Prepare a staternent of stockholders' equity for the month ended July 31, 2012 Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, entero" C. Prepare a balance sheet as of July 31, 2012 Be sure to complete the statement heading ed assets must be entered in order according to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons () or the word "Loss' on the balance sheet; they will automatically insert where necessary Negative amount should be indicated by the minus sign 9. A. Joumalize the closing entries on page 4 of the journal. Refer to the Chart of Accounts for exact wording of account titles B. Post the closing entries, inserting bulances in the accounts affected. Levive the ITEM column BLANK for each row. If the account balance is zero (0) after closing entries are posted, enter a zero (0) in the account's normal balance column 10. Prepare a post-closing trial balance Chart of Accounts CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 52 Rent Expense 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels and Amount Descriptions Labels Current assets Current liabilities Expenses For the Month Ended July 31, 20Y2 July 31, 20Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20Y2 Balances, July 31, 20Y2 Dividends Issued common stock Net income Net loss se Total assets Total current assets nse Total expenses Total liabilities Total liabilities and stockholders' equity Labels and Amount Descriptions Expenses For the Month Ended July 31, 20Y2 July 31, 20Y2 Property, plant, and equipment Revenues Amount Descriptions Balances, July 1, 20Y2 Balances, July 31, 20Y2 Dividends Issued common stock Net income Net loss Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity Complete accounting cycle A Instructions Charter Accounts Labels and Amount Descriptions Work Sheet Journal Ledger Uradjusted Trial Balance Adjusted Trial Balance Income Statement Statement of Stockholders' Equity Balance Sheet Post-closing Trial Balance 8a. Prepare an income statement for the month ended taly 31, 2012 Be sure to complete the statement heading a net us has been incurred, enter that amount as a napata number using a minus sign. Perfer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You wil not need to enter colors(on the income statement Diamond Consulting Income Statement Label 1 Fees earned $14,800.00 2 (Labeo 3 4 5 Complete accounting cycle Instructions Chart of Accounts Labels and Amount Descriptions Work Shoot Journal Ledger Journal Ledger 2. Post the journal to a ledger of four column accounts. Add the appropriate posting reference to the journal 6. b. Post the adjusting entries, inserting balances in the account aracted. 9. D. Post na kosing entries, inserting utances in the accounts amictec. Levive the ITEM COMO BANK Ar each row if the account balance is 2000 (0) afor closing enties are posted, enter a 2010 () in the account's normal bulance column LEDGER Account Cash Account Accounts Receivable Account No. 11 Account No. 12 Account No. 14 Account: Supplies Account: Prepaid Rent Account: Prepaid insurance Account No. 15 Account No. 16 MALANCE DEBAT DATE CREDIT POST, RER ITEM DET CREDIT