Final Case Study ACCT 26 Following are the chart of accounts for and balances for June 1, 20xX for The Right Approach, an advertising company that sells subscriptions and provides consulting for advertising ideas and slogans. The business is in its second year of operations, and transactions for the month of June follow. Chart of Accounts 110 Cash 120 130 17,540.63 12,409.15 1,962.00 140 600.00 145 36,000.00 75,000.00 150 151 19,800.00 155 Accounts Receivable Supplies Prepaid Insurance Land Equipment Accumulated Amortization: Equipment Delivery Van Accumulated Amortization: Delivery Van Furniture Accumulated Amortization: Furniture Building Accumulated Amortization: Building Accounts Payable 21,640.00 156 10,800.00 160 4,300.00 161 2,145.00 165 195,000.00 166 24,750.00 205 4,203.32 1 930 words TakPred on Enable Editing contain viruses. Unless you need to edit it's safer to stay in Protected View. 16 5 4 3 0 2 166 24,750.00 4,203.32 31,490.60 205 210 215 220 250 122,400.00 148,862.86 305 310 350 410 1 - Accumulated Amortization: Building Accounts Payable Notes Payable Uneamed Revenue Wages Payable Mortgage Payable Jane Green, Capital Jane Green, Drawing Income Summary Consulting Revenue Advertising Subscription Revenue Utilities Expense Wages Expense Advertising Expense Gas and Oil Expense Repairs and Maintenance - Bldg Repairs and Maintenance - Van Interest Expense Supplies Expense Insurance Expense Amortization Expense 415 505 510 515 520 525 530 540 550 555 560 364 451.78 364 451.78 Instruction 2 Le Grand Journal General Journal G) G ACCOUNT Post Ref DEBIT CRE Trial Balance Income + Balance Sheets General Journal Ledger Accounts Instructions 1. Enter the account names, numbers, and balances into the general ledger. 2. Record lune's transactions in a general journal. Begin numbering with page 85. 3. Post the transactions to the general ledger, don't forget the posting references. 4. Prepare a trial balance at June 30, to verify you balance. C. e. 5. Prepare adjusting entries and record in the general journal from the following information a. The inventory of supplies on June 30th, is $1460.45 (based on a physical count). b. The insurance policy was purchased on January 1 at a cost of $1,200 and is for a 12 month period. The equipment has a useful life of 10 years and a salvage value of $1,500. d. The delivery van has a useful life of 4 years and a salvage value of $1,240. The furniture has a useful life of 5 years and no salvage value. f. The building has a useful life of 20 years and a salvage value of 15,000. g. 3 hours of consulting (at $100 per hours) were performed by Jane Green during June forth Water Works Company. See June 2 transaction. h. June 30 falls on a Monday. Record 1 days wage expense at $335.26. i. Unrecorded Advertising Subscription Revenue for the last 2 days of June (which customers have not paid or been invoiced) is $1,688.35. Post the adjusting entries to the General Ledger 7. Prepare a trial balance at June 30th 6. 8. Prepare an income statement for the Month Ended June 30". 9. Prepare a balance sheet at June 30th. 10. Journalize the closing entries in the general journal. 11. Post the closing entries to the general ledger. e- WM . 1 1 2 1 3 6. Post the adjusting enthes to the General Leager 7. Prepare a trial balance at June 30th 8. Prepare an income statement for the Month Ended June 30th. 9. Prepare a balance sheet at June 30th. 10. Journalize the closing entries in the general journal. 11. Post the closing entries to the general ledger. 12. Prepare a post-closing trial balance. The Right Approach CASH Date Explanation Jun1 XX Balance Forward Ledger Accounts Account # 110 Debit Credit Balance $ 17,540.63 ACCTS RECEIVA Post Ref Date Expl 01-Jun Balance F 5 SUPPLIES 6 Date Explana 17 01-Jun Balance Forw 18 19 20 21 + H I J K L M N o PREPAID INSURANCE Date Explanation 01-Jun Balance Forward Post Ref Account # 140 Credit Balance Debit $ 600.00 LAND Date Post Ref Debit Explanation Balance Forward Account # 145 Credit Balance $ 36,000.00 01-Jun 0 Account # 150 EQUIPMENT Date Explanation 01-Jun Balance Forward Post Ref Debit Credit Balance JA $ 75,000.00 Do 01- Account # 151 ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Credit Balance $ 19,800.00 JANE Es Scroll right for remaining accounts - they are in numeric order - Account # 120 ACCTS PAYABLE Account #20 Post Ref Debit Credit Debit Credit Balance $ 12,409.15 Date Explanation 01-Jun Balance Forward Balance $ 4,203.3. Post Ref NOTES PAYABLE Date Explanation 01-Jun Balance Forward Debit Credit Account #21 Balance $ 31,490.61 } Account # 130 Ef Debit Credit Balance $ 1,962.00 UNEARNED CONSULTING REVENUE Date Explanation Post Ref Account #21 Balance Debit Credit Account # 1401 Income + Balance Sheets 1009 459 PM CASH G H J K L I Date M N Post Ref Explanation Balance Forward Debit Credit Balance 01-Jun $ 4,300.00 ACC. AMORT - FURNITURE Date Explanation 01-Jun Balance Forward Account # 161 Credit Balance Post Ref Debit $ 2,145.00 BUILDING Date Explanation 01-Jun Balance Forward Host Ref Debit Account # 165 Credit Balance $ 195,000.00 ACC. AMORT - BUILDING Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 166 Credit Balance $ 24,750.00 General Journal Ledger Accounts Trial Balance Income + Balance Sheets K M Post Ref Debit Credit Balance WAG Date Explanation 01-Jun Balance Forward $ 600.00 Dat MOR LAND Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 145 Credit Balance $ 36,000.00 Date 01-Jur Account # 150 Post Ref EQUIPMENT Date Explanation 01-Jun Balance Forward Debit Credit Balance JANE $ 75,000.00 Date 01-Jun ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 19,800.00 JANE Date Debit Post Ref DELIVERY VAN Date Explanation 01-Jun Balance Forward Account # 155 Credit Balance $ 21,640.00 Its safer to stay in Protected vien -X for CASH R S V NE GREEN, DRAWING Date Explanation U Account #310 Balance Post Ref Debit Credit INI D NCOME SUMARY Date Explanation Post Ref Rebit Account # 350 Balance Credit SUP Da Account #415 INSU REVENUE FROM SUBSCRIPTIONS Date Explanation Post Ref Debit Credit Balance Da AMC General Journal Ledger Accounts Trial Balance Income + Balance Sheets I J K L M N 0 Date Explanation Balance Forward Post Ref Debit Credit D 01-Jun Balance $ 36,000.00 01- EQUIPMENT Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 150 Credit Balance $ 75,000.00 JAN Da 01-1 ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 19,800.00 JAN Dat Account # 155 DELIVERY VAN Date Explanation 01-Jun Balance Forward Post Ref Debit Credit Balance $ 21,640.00 ACC. AMORT- DELIVARY VAN Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 10,800.00 INCC Dat General Journal Ledger Accounts Trial Balance Income + Balance Sheets - IA W R S T U V W REVENUE FROM SUBSCRIPTIONS Date Explanation Post Ref INSUN Account # 415 Balance Debit Credit Dat AMOF Date CONSULTING REVENUE Date Explanation Account # 410 Balance Post Ref Debit Credit H I J K L M N Date Explanation 01-Jun Balance Forward Post Ref Debit Credit Balance $ 36,000.00 EQUIPMENT Date Explanation 01-Jun Balance Forward Account # 150 Credit Balance Post Ref Debit $ 75,000.00 ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 19,800.00 DELIVERY VAN Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 155 Credit Balance $ 21,640.00 ACC. AMORT-DELIVARY VAN Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 10,800.00 er Accounts Trial Balance Income + Balance Sheets The Right Approach Trial Balance Account Debit Credit Accounts Receivable 9 Supplies 10 Prepaid Insurance 2 Equipment Acc. Amortization - Equipment 4 Delivery Van 1s Acc. Amortization - Delivery Van Furniture Acc. Amortization - Furniture - Building 19 Acc. Amortization - Building 0 Accounts Payable Notes Payable Unearned Consulting Revenue Mortgage Payable - Building 2.: Vages Payable Jane Green, Capital Jane Green, Drawing Revenue from Subscriptions Consulting Revenue Utilities Expense Vages Expense Advertising Expense Gas & Oil Expense Repairs and Maintenance - BLDG Repairs and Maintenance - VAN Interest Expense * Supplies Expense Insurance Expense v Amortization Expense, 081 886 46 Instruction 99 The Right Approach Balance Sheet At June 30, 20XX Assets Cash Accts Receivable Supplies Prepaid Insurance Land Equipment Acc. Amortization - Equipment Delivery Van Acc. Amortization - Delivery Van Furniture Acc. Amortization - Furniture Building Acc. Amortization - Building Total Assets: Liabilities Accts Payable Notes Payable Unearned Consulting Revenue Mortgage Payable - Building Wages Payable Total Liabilities: Owner's Equity Jane Green, Capital, Oct 1, 20XX Add: Net Income Subtotal: $ Deduct: Jane Green, Drawing Jane Green, Capital Oct 31, 20xx Total Liabilities + 0/E: $ $ $ S General Journal Ledger Accounts Trial Baland The Right Approach Post-Closing Trial Balance Sheet for the month ending Oct 31st, 20xx Assets Accts Receivable Supplies Prepaid Insurance Land Equipment Acc. Amortization - Equipment Delivery Van Acc. Amortization - Delivery Van Furniture Acc. Amortization - Furniture Building Acc. Amortization - Building Accts Payable Notes Payable Unearned Consulting Revenue Mortgage Payable - Building Wages Payable J. P. Dubois, Capital, Oct 31, 20XX Totals: $ Final Case Study ACCT 26 Following are the chart of accounts for and balances for June 1, 20xX for The Right Approach, an advertising company that sells subscriptions and provides consulting for advertising ideas and slogans. The business is in its second year of operations, and transactions for the month of June follow. Chart of Accounts 110 Cash 120 130 17,540.63 12,409.15 1,962.00 140 600.00 145 36,000.00 75,000.00 150 151 19,800.00 155 Accounts Receivable Supplies Prepaid Insurance Land Equipment Accumulated Amortization: Equipment Delivery Van Accumulated Amortization: Delivery Van Furniture Accumulated Amortization: Furniture Building Accumulated Amortization: Building Accounts Payable 21,640.00 156 10,800.00 160 4,300.00 161 2,145.00 165 195,000.00 166 24,750.00 205 4,203.32 1 930 words TakPred on Enable Editing contain viruses. Unless you need to edit it's safer to stay in Protected View. 16 5 4 3 0 2 166 24,750.00 4,203.32 31,490.60 205 210 215 220 250 122,400.00 148,862.86 305 310 350 410 1 - Accumulated Amortization: Building Accounts Payable Notes Payable Uneamed Revenue Wages Payable Mortgage Payable Jane Green, Capital Jane Green, Drawing Income Summary Consulting Revenue Advertising Subscription Revenue Utilities Expense Wages Expense Advertising Expense Gas and Oil Expense Repairs and Maintenance - Bldg Repairs and Maintenance - Van Interest Expense Supplies Expense Insurance Expense Amortization Expense 415 505 510 515 520 525 530 540 550 555 560 364 451.78 364 451.78 Instruction 2 Le Grand Journal General Journal G) G ACCOUNT Post Ref DEBIT CRE Trial Balance Income + Balance Sheets General Journal Ledger Accounts Instructions 1. Enter the account names, numbers, and balances into the general ledger. 2. Record lune's transactions in a general journal. Begin numbering with page 85. 3. Post the transactions to the general ledger, don't forget the posting references. 4. Prepare a trial balance at June 30, to verify you balance. C. e. 5. Prepare adjusting entries and record in the general journal from the following information a. The inventory of supplies on June 30th, is $1460.45 (based on a physical count). b. The insurance policy was purchased on January 1 at a cost of $1,200 and is for a 12 month period. The equipment has a useful life of 10 years and a salvage value of $1,500. d. The delivery van has a useful life of 4 years and a salvage value of $1,240. The furniture has a useful life of 5 years and no salvage value. f. The building has a useful life of 20 years and a salvage value of 15,000. g. 3 hours of consulting (at $100 per hours) were performed by Jane Green during June forth Water Works Company. See June 2 transaction. h. June 30 falls on a Monday. Record 1 days wage expense at $335.26. i. Unrecorded Advertising Subscription Revenue for the last 2 days of June (which customers have not paid or been invoiced) is $1,688.35. Post the adjusting entries to the General Ledger 7. Prepare a trial balance at June 30th 6. 8. Prepare an income statement for the Month Ended June 30". 9. Prepare a balance sheet at June 30th. 10. Journalize the closing entries in the general journal. 11. Post the closing entries to the general ledger. e- WM . 1 1 2 1 3 6. Post the adjusting enthes to the General Leager 7. Prepare a trial balance at June 30th 8. Prepare an income statement for the Month Ended June 30th. 9. Prepare a balance sheet at June 30th. 10. Journalize the closing entries in the general journal. 11. Post the closing entries to the general ledger. 12. Prepare a post-closing trial balance. The Right Approach CASH Date Explanation Jun1 XX Balance Forward Ledger Accounts Account # 110 Debit Credit Balance $ 17,540.63 ACCTS RECEIVA Post Ref Date Expl 01-Jun Balance F 5 SUPPLIES 6 Date Explana 17 01-Jun Balance Forw 18 19 20 21 + H I J K L M N o PREPAID INSURANCE Date Explanation 01-Jun Balance Forward Post Ref Account # 140 Credit Balance Debit $ 600.00 LAND Date Post Ref Debit Explanation Balance Forward Account # 145 Credit Balance $ 36,000.00 01-Jun 0 Account # 150 EQUIPMENT Date Explanation 01-Jun Balance Forward Post Ref Debit Credit Balance JA $ 75,000.00 Do 01- Account # 151 ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Credit Balance $ 19,800.00 JANE Es Scroll right for remaining accounts - they are in numeric order - Account # 120 ACCTS PAYABLE Account #20 Post Ref Debit Credit Debit Credit Balance $ 12,409.15 Date Explanation 01-Jun Balance Forward Balance $ 4,203.3. Post Ref NOTES PAYABLE Date Explanation 01-Jun Balance Forward Debit Credit Account #21 Balance $ 31,490.61 } Account # 130 Ef Debit Credit Balance $ 1,962.00 UNEARNED CONSULTING REVENUE Date Explanation Post Ref Account #21 Balance Debit Credit Account # 1401 Income + Balance Sheets 1009 459 PM CASH G H J K L I Date M N Post Ref Explanation Balance Forward Debit Credit Balance 01-Jun $ 4,300.00 ACC. AMORT - FURNITURE Date Explanation 01-Jun Balance Forward Account # 161 Credit Balance Post Ref Debit $ 2,145.00 BUILDING Date Explanation 01-Jun Balance Forward Host Ref Debit Account # 165 Credit Balance $ 195,000.00 ACC. AMORT - BUILDING Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 166 Credit Balance $ 24,750.00 General Journal Ledger Accounts Trial Balance Income + Balance Sheets K M Post Ref Debit Credit Balance WAG Date Explanation 01-Jun Balance Forward $ 600.00 Dat MOR LAND Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 145 Credit Balance $ 36,000.00 Date 01-Jur Account # 150 Post Ref EQUIPMENT Date Explanation 01-Jun Balance Forward Debit Credit Balance JANE $ 75,000.00 Date 01-Jun ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 19,800.00 JANE Date Debit Post Ref DELIVERY VAN Date Explanation 01-Jun Balance Forward Account # 155 Credit Balance $ 21,640.00 Its safer to stay in Protected vien -X for CASH R S V NE GREEN, DRAWING Date Explanation U Account #310 Balance Post Ref Debit Credit INI D NCOME SUMARY Date Explanation Post Ref Rebit Account # 350 Balance Credit SUP Da Account #415 INSU REVENUE FROM SUBSCRIPTIONS Date Explanation Post Ref Debit Credit Balance Da AMC General Journal Ledger Accounts Trial Balance Income + Balance Sheets I J K L M N 0 Date Explanation Balance Forward Post Ref Debit Credit D 01-Jun Balance $ 36,000.00 01- EQUIPMENT Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 150 Credit Balance $ 75,000.00 JAN Da 01-1 ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 19,800.00 JAN Dat Account # 155 DELIVERY VAN Date Explanation 01-Jun Balance Forward Post Ref Debit Credit Balance $ 21,640.00 ACC. AMORT- DELIVARY VAN Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 10,800.00 INCC Dat General Journal Ledger Accounts Trial Balance Income + Balance Sheets - IA W R S T U V W REVENUE FROM SUBSCRIPTIONS Date Explanation Post Ref INSUN Account # 415 Balance Debit Credit Dat AMOF Date CONSULTING REVENUE Date Explanation Account # 410 Balance Post Ref Debit Credit H I J K L M N Date Explanation 01-Jun Balance Forward Post Ref Debit Credit Balance $ 36,000.00 EQUIPMENT Date Explanation 01-Jun Balance Forward Account # 150 Credit Balance Post Ref Debit $ 75,000.00 ACC. AMORT - EQUIPMENT Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 19,800.00 DELIVERY VAN Date Explanation 01-Jun Balance Forward Post Ref Debit Account # 155 Credit Balance $ 21,640.00 ACC. AMORT-DELIVARY VAN Date Explanation Post Ref 01-Jun Balance Forward Debit Account # 151 Credit Balance $ 10,800.00 er Accounts Trial Balance Income + Balance Sheets The Right Approach Trial Balance Account Debit Credit Accounts Receivable 9 Supplies 10 Prepaid Insurance 2 Equipment Acc. Amortization - Equipment 4 Delivery Van 1s Acc. Amortization - Delivery Van Furniture Acc. Amortization - Furniture - Building 19 Acc. Amortization - Building 0 Accounts Payable Notes Payable Unearned Consulting Revenue Mortgage Payable - Building 2.: Vages Payable Jane Green, Capital Jane Green, Drawing Revenue from Subscriptions Consulting Revenue Utilities Expense Vages Expense Advertising Expense Gas & Oil Expense Repairs and Maintenance - BLDG Repairs and Maintenance - VAN Interest Expense * Supplies Expense Insurance Expense v Amortization Expense, 081 886 46 Instruction 99 The Right Approach Balance Sheet At June 30, 20XX Assets Cash Accts Receivable Supplies Prepaid Insurance Land Equipment Acc. Amortization - Equipment Delivery Van Acc. Amortization - Delivery Van Furniture Acc. Amortization - Furniture Building Acc. Amortization - Building Total Assets: Liabilities Accts Payable Notes Payable Unearned Consulting Revenue Mortgage Payable - Building Wages Payable Total Liabilities: Owner's Equity Jane Green, Capital, Oct 1, 20XX Add: Net Income Subtotal: $ Deduct: Jane Green, Drawing Jane Green, Capital Oct 31, 20xx Total Liabilities + 0/E: $ $ $ S General Journal Ledger Accounts Trial Baland The Right Approach Post-Closing Trial Balance Sheet for the month ending Oct 31st, 20xx Assets Accts Receivable Supplies Prepaid Insurance Land Equipment Acc. Amortization - Equipment Delivery Van Acc. Amortization - Delivery Van Furniture Acc. Amortization - Furniture Building Acc. Amortization - Building Accts Payable Notes Payable Unearned Consulting Revenue Mortgage Payable - Building Wages Payable J. P. Dubois, Capital, Oct 31, 20XX Totals: $