eBook Spreadsheet Complete accounting cycle Instructions Chart of Accounts Labels and Amount Descriptions Work Sheet Journal Ledger Instructions For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy 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 following transactions during July Jul 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $12,500, accounts receivable, $20,800, supplies, $3,100, and office equipment, $7,500. There were no liabilities received. 1 Paid two months' rent on a lease rental contract, $4,800. 2 Paid the premiums on property and casualty insurance policies, $4,620 4 Received cash from clients as an advance payment for services to be provided, and recorded it as uneamed fees, $5,000. 5 Purchased additional office equipment on account from Office Station Co., $6,500. 6 Received cash from clients on account, $15, 100. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Office Station Co. for part of the debt incurred on July 5, $5,200. 12 Recorded services provided on account for the period July 1-12, $13,300. 14 Paid receptionist for two weeks' salary, $1,700. Record the following transactions on Page 2 of the journal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 1-17, $9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 13-20, $6,650. 24 Recorded cash from cash clients for fees earned for the period July 17-24, $5,000. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks' salary, $1,700. 29 Paid telephone bill for July, $300. 31 Paid electricity bill for July, $675. 31 Recorded cash from cash clients for fees earned for the period July 25-31, $5,400. 31 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends, $12,500. Required: 1. Joumalize 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.) 2. Post the journal to a ledger of four-column accounts. Add the appropriate posting reference to the journal. 3. 4. 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 $385. B. Supplies on hand on July 31 are $1,550. < B. Supplies on hand on July 31 are $1,550. C. Depreciation of office equipment for July is $750. D. Accrued receptionist salary on July 31 is $170. E. Rent expired during July is $2,400. F. Unearned fees earned on July 31, $2,750. 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. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 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, 20Y2. Be sure to complete 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. 9. B. Prepare a statement of stockholders' equity for the month ended July 31, 20Y2. 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, enter "0". C. Prepare a balance sheet as of July 31, 20Y2. Be sure to complete the statement heading. Fixed 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 "Less" on the balance sheet, they will automatically insert where necessary. Negative amount should be indicated by the minus sign. 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 balances in the accounts affected. Leave 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 halance column Novt eBook Spreadsheet B. Post the closing entries, inserting balances in the accounts affected. Leave 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 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation LIABILITIES REVENUE 41 Fees Earned EXPENSES 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense ook Spreadsheet LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Labels and Amount Descriptions 59 Miscellaneous Expense Labels Current assets Current liabilities Expenses For the Month Ended July 31, 20Y2 July 31, 20Y2 Property, plant, and equipment Revenues Amount Descriptions k Spreadsheet abels 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 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity eBook Spreadsheet Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity Work Sheet 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. Journal < 1. Journalize each transaction in a two-column joumal 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.) Note: Scroll down to access pages 2 through 4 of the journal. ook Spreadsheet 1 2 3 4 5 6 7 DATE DESCRIPTION 8 9 10 11 12 13 14 14 15 16 26 JOURNAL PAGE 1 ACCOUNTING EQUATION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY eBook 19 20 20 21 22 22 23 23 Spreadsheet DATE DESCRIPTION 1 2 3 5 6 7 8 9 10 10 JOURNAL PAGE 2 ACCOUNTING EQUATION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY eBook 11 12 13 < 14 15 16 17 17 87 18 19 20 21 22 Spreadsheet 6. a. Joumalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. DATE DESCRIPTION 1 Adjusting Entries PAGE 3 ACCOUNTING EQUATION JOURNAL POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY eBook Spreadsheet 6. a. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. DATE DESCRIPTION 1 Adjusting Entries 2 3 4 5 6 < 7 8 9 10 11 12 13 PAGE 3 JOURNAL ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 9. a. Journalize the closing entries on page 4 of the journal. DATE DESCRIPTION 1 Closing Entries 2 3 4 5 6 7 I 8 9 10 11 Ledger JOURNAL PAGE 4 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY eBook Spreadsheet 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 accounts affected. 9. b. Post the closing entries, inserting balances in the accounts affected. Leave 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. Account: Cash Account: Accounts Receivable Account: Supplies Account: Prepaid Rent Account: Prepaid Insurance Account: Office Equipment Account: Accumulated Depreciation Account: Accounts Payable Account: Salaries Payable Account: Unearned Fees Account: Common Stock Account: Retained Earnings Account: Dividends Account: Fees Earned Account: Salary Expense Account: Rent Expense Account: Supplies Expense Account: Depreciation Expense Account: Insurance Expense Accounts Mircollanonur Funonco LEDGER Account No. 11 Account No. 12 Account No. 14 Account No. 15 Account No. 16 Account No. 18 Account No. 19 Account No. 21 Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 Account No. 41 Account No. 51 Account No. 52 Account No. 53 Account No. 54 Account No. 55 Account No 50 Account: Accumulated Depreciation Account: Accounts Payable Account: Salaries Payable Account: Unearned Fees Account: Common Stock Account: Retained Earnings Account: Dividends Account: Fees Earned Account: Salary Expense Account: Rent Expense Account: Supplies Expense Account: Depreciation Expense Account: Insurance Expense Account: Miscellaneous Expense Unadjusted Trial Balance 3. Prepare an unadjusted trial balance. Diamond Consulting UNADJUSTED TRIAL BALANCE July 31, 20Y2 Account No. 19 Account No. 21 Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 Account No. 41 Account No. 51 Account No. 52 Account No. 53 Account No. 54 Account No. 55 Account No. 59 eBook Spreadsheet 3. Prepare an unadjusted trial balance. 1 Cash 2 Accounts Receivable 3 Supplies Diamond Consulting UNADJUSTED TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation s Accounts Payable 9 Salaries Payable 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Dividends 14 Fees Earned DEBIT CREDIT Previous Next eBook 14 Fees Earned 15 Salary Expense 16 Rent Expense 17 Supplies Expense Spreadsheet 18 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 21 Totals Adjusted Trial Balance 7. Prepare an adjusted trial balance 1 Cash 2 Accounts Receivable Diamond Consulting ADJUSTED TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE DEBIT CREDIT 7. Prepare an adjusted trial balance. 1 Cash 2 Accounts Receivable 3 Supplies Diamond Consulting ADJUSTED TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 10 Uneamed Fees 11 Common Stock 12 Retained Earnings 13 Dividends 14 Fees Earned DEBIT CREDIT 13 Dividends 14 Fees Earned 15 Salary Expense 16 Rent Expense 17 Supplies Expense 18 Depreciation Expense 19 Insurance Expense 20 Miscellaneous Expense 21 Totals eBook Income Statement Spreadsheet 8a. Prepare an income statement for the month ended July 31, 20Y2. Be sure to complete 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 1 2 (Label) < 3 S 6 7 8 9 10 Diamond Consulting Income Statement (Label) Statement of Stockholders' Equity 8b. Prepare a statement of stockholders' equity for the month ended July 31, 20Y2. 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, enter "0". 1 Diamond Consulting Statement of Stockholders' Equity I 2 3 4 5 Balance Sheet (Label) Retained Common Stock Total Earnings Balance Sheet 8c. Prepare a balance sheet as of July 31, 20Y2. Be sure to complete the statement heading. Fixed 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 "Less" on the balance sheet; they will automatically insert where necessary. Negative amount should be indicated by the minus sign. Assets 1 < 2 (Label) 3 4 5 6 7 8 9 (Label) 10 Diamond Consulting Balance Sheet (Label) 8 9 (Label) 10 10 11 12 13 44 14 15 (Label) 16 Liabilities 17 18 19 20 Stockholders' Equity 21 22 23 24 Post-closing Trial Balance 10. Prepare a post-closing trial balance. 1 Cash 2 Accounts Receivable 3 Supplies Diamond Consulting POST-CLOSING TRIAL BALANCE July 31, 20Y2 ACCOUNT TITLE 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation 8 Accounts Payable 9 Salaries Payable 10 Unearned Fees 11 Common Stock 12 Retained Earnings DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies Diamond Consulting POST-CLOSING TRIAL BALANCE July 31, 2012 ACCOUNT TITLE 4 Prepaid Rent 5 Prepaid Insurance 6 Office Equipment 7 Accumulated Depreciation Accounts Payable 9 Salaries Payable 10 Unearned Fees 11 Common Stock 12 Retained Earnings 13 Totals Check My Work DEBIT CREDIT All work saved. Email Instructor Save