Question
Create a mock merchandising company and demonstrate your knowledge of accrual basis accounting and the double-entry accounting system by creating a minimum of 10 original
Required (All 12 steps must be performed using EXCEL)
1) Write a list of at least 10 original transactions spanning a fiscal quarter (e.g. Jan.1 ? March 31) and following the guidelines above. The first transaction should be a financing transaction (issue stock or borrow).
2) Journalize each transaction.
3) Post the journal entries to accounts and compute the ending balance (March 31) in each account.
4) Prepare a trial balance from ending account balances.
5) Write a list of at least 5 adjusting entries for the quarter-ended March 31 related to transactions prepared in step 1. Note that adjusting entries do not have an effect on the cash account.
6) Journalize the adjusting entries. Note that adjusting entries do not affect the cash account.
???
000000 2020 Jan 2 2 3 Jan Det. L Jan Paid $1100 rent in cash Paid annuel Insurence $960 in cest Purchase equipment $3600 for cash. Parchand Supplies $300 on account. Received Cash $ 7800 forom selling mechandiseiten, Feb 16 Sold mechandise item of $6100, payment will be received in April 2020, Jan.! Feb.5 15 Feb. Transactions Started business with cest $7000 and issued common stock, Feb. 21 Received Cash $6100 for sale dated Feb.16 Paid $ 170 to accounts payable for supplies Man.23 to staff $4200 in cash. Mar 28 Mar 31 Poid Paid $200 divicked in cash #1 Jan Dex.1 Jan fel Jan Dec 1 Jan Feb Dez. 5 15 D Feb (6.Zez! 21. Be 23. Manch March 28. DEE 31 March Cash 7000 Common Stork Rent Expens Cash Insurane Expense Cash Equipment 3600 Cash Supplies 1100 Cash 300 Accounts payable 7800 Service Revenue Account Receivable Cash 7000 1100 960 3600 Service Revency 2700 Accounts Receivable 960 Accounts Payable 170 Cash Wages Expense 9200 6100 300 7800 Pago No. 170 6100 2700 4200 Dividend Expense 200 Cast 200 #1 Ders Jan Dec.1 Jan Dez.1 Jan DEE1 Jan Dez. 5 15 Feb Feb (6.Bez 21. Dec Manch 23. P March 28. DE 30 Det 31 March Cash 7000 Common Stork Rent Expend Cash Insurane Expense Cash Equipment 3600 Cas Supplies 1100 Cash 300 Accounts Payable 7800 Service Revenue Cash Account Receivable 7000 960 1100 3600 Service Revency 960 6100 2700 Accounts Receivable Accounts Payable 170 Wages Expense 9200 300 7800 Pago No. 170 6100 2700 4200 Diviclend Expense 200 Cash 200 #2 Common Stock 7000 Rent Service Rev. 7800 Insurame A/C Receivable 2700 Equipment Balance Cash Cash Cash Cash 7270 ATC Payable Bal. 960 Bal. 960 4 Common stock Insurance 1100 13a/- 1/1100) Rent 3600 Bal. 3600 A/C Payable Wages Dividend Equipment Cash 300 Supplies 300 Page No. Bal. 1100 960 3600 170 4200 200 7000 (7000 Cash -Cash Service Revenu Cash Cash Ale Payable 170 A/C Receivable A/C Receivable Service Revenue 6/00 Service fevem Cash Bale 3400 Wages 4200 Bato 142001 200 - Supplies Dividend Bale 200 Bal. Bal. (130 Ate 7800 6100 13900 for 300 2700 2010 35400 56000 Bb5 G #4 Un adjusted Trial Balame Cash Common Stork Insurance Expense Rent Expense A/c Payable ALC Receivable Service Revenue Wayes Expense Dividend Debit Credit 7270 7000 960 1100 3600 300 3400 4200 200 130 13.900 21030 2/030
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
XYZ LTD CLOSSES ITS ACCOUNTS ON 31MARCH 1 10 TRANSACTIONS XYZ LTD COMMENCE BUSINESS WITH A CAPITAL OF RS 20 LAKH ON 1 JANUARY BORROWS 30 LAKHS FROM SLM ENTERPRISE ON 1 JANUARY PURCHASE THE PLANT AND M...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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