Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2013, Dustin decided to move

image text in transcribed

For the past several years, Dustin Larkin has operated a part-time consulting business from his

home. As of June 1, 2013, Dustin decided to move to rented quarters and to operate the business,

which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into

the following transactions during June:

June 1. The following assets were received from Dustin Larkin: cash,

$10,000; accounts receivable, $1,500; supplies, $1,250; and office equipment, $7,500.

There were no liabilities received.

June 1. Paid three months' rent on a lease rental contract, $4,500.

June 2. Paid the premiums on property and casualty insurance policies, $1,800.

June 4. Received cash from clients as an advance payment for services to be provided (Record

it as unearned fees), $3,000.

June 5. Purchased additional office equipment on account from Crawford Company, $1,800.

June 6. Received cash from clients on account, $800.

June 10. Paid cash for a newspaper advertisement to run during June, $120.

June 12. Paid Crawford Company for part of the debt incurred on June 5, $800.

June 12. Recorded services provided on account for the period June 1 to June 12, $2,250.

June 14. Paid part-time receptionist for 2 weeks' salary, $400. (Note: Ignore any payroll tax or

withholdings).

June 17. Recorded cash from cash clients for fees earned during the period June 1-16, $3,175.

June 18. Paid cash for supplies, $750.

June 20. Recorded services provided on account for the period June 13-20, $1,100.

June 24. Recorded cash from cash clients for fees earned for the period June 17-24, $1,850.

June 26. Received cash from clients on account, $1,600.

June 27. Paid part-time receptionist for two weeks' salary, $400. (Note: Ignore any payroll tax or

withholdings).

June 29. Paid telephone bill for June, $130.

Unit 2 [AC499: Bachelor?s Capstone in Accounting]

June 30. Paid electricity bill for June, $200.

June 30. Recorded cash from cash clients for fees earned for the period June 25-30, $2,050.

June 30. Recorded services provided on account for the remainder of June, $1,000.

June 30. Dustin withdrew $4,500 for personal use.

Instructions-Use the Excel template provided in the class titled ?Unit 2 and 3 Management

Tools Assignment? to complete the following 3 requirements for Unit 2:

1. Journalize each transaction in the two-column journal tab, referring to the following chart of

accounts in selecting the accounts to be debited and credited.

11-Cash 31-Dustin Larkin, Capital

12-Accounts Receivable 32-Dustin Larkin, Drawing

14-Supplies 41-Fees Earned

15-Prepaid Rent 51-Salary Expense

16-Prepaid Insurance 52-Rent Expense

18-Office Equipment 53-Supplies Expense

19-Accumulated Depreciation 54-Depreciation Expense

21-Accounts Payable 55-Insurance Expense

22-Salaries Payable 59-Miscellaneous Expense

23-Unearned Fees

2. Post the journal to a ledger of four-column accounts, see the Excel tab labeled accordingly.

3. Prepare a trial balance as of June 30, 2013 ? using the tab in the Excel workbook labeled

accordingly.

Be sure and save your work, you will complete the accounting cycle in Unit 3 using the same Excel

Template and information.

Unit 2 [AC499: Bachelor?s Capstone in Accounting]

Notes:

1) Proper Journal Entry Formatting is absolutely mandatory.

a. Debit Account Descriptions are to be fully left-justified in the line.

b. Credit Account Descriptions are to be indented in the cell.

c. A short description is required for every journal entry.

2) You will be required to create at least ONE additional general Ledger Account to

accommodate a few Journal Entries.

3) You may need to add the ?Miscellaneous Expense" account to the General Ledger.

4) Or, you may create 2 or 3 new G/L accounts. For example "Utilities."

5) Be sure that you use proper formatting when you create the Financial Statements. For

example:

a. Add required underlining,

b. "$" signs must be properly formatted.

6) The templates are NOT fully ?pre-formatted.? You must re-format them for proper presentation

in a number of places.

Remember, if you have any questions, concerns, or doubts about any of the instructions, please

contact your instructor in the Virtual Office as soon as possible.

image text in transcribed Management Tools Assignment Part 1 and Part 2 Additional Notes: 1) All Journal Entries MUST include the "Explanation" line. 2) All Debit account entry lines MUST be fully left-justified. 3) All Credit account entry lines MUST be indented 4 or 5 spaces, UNIFORMLY. 4) You will be required to create at least ONE additional general Ledger Account to accommodate a few Journal Entires. Due Dates Assignment Part 1 - Due at the end of Unit 2 (40 Points) Assignment Part 2 - Due at the end of Unit 3 (40 Points) 5) You may creat one "Miscellaneous Expense" account in the General Ledger to accommodate all of the otherwise unspecified entries, OR you may create 2 or 3 new G/L accounts. For example "Utilities." 6) Be sure that you use proper formatting when you create the Financial Statements. For example, all underlining and "$" signs must be properly formatted. 7) These templates are NOT fully "pre-formatted". You must re-format them for proper presentation in many places. MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. There are 9 Sheets in the Workbook including this one. All of the Information you need for the Project is located in this Workbook. Requirements Assignment Part 1 Due in Unit 02 Requirement 1 - Prepare the Journal Entries in the General Journal Requirement 2 - Post Journal Entries to the General Ledger Requirement 3 - Prepare a Trial Balance Sheet in Workbook Jounral Entries General Ledger Trial Balance Assignment Part 2 - Due in Unit 3 Requirement 4 - Prepare the Adjusting Entries Requirement 5 - Post Adjusting Entries to the General Ledger Requirement 6 - Prepare an Adjusted Trial Balance Requirement 7 - Prepare the Financial Statements Requirement 8 - Prepare the Closing Entries Requirement 9 - Post Closing Entries to the General Ledger Requirement 10 - Prepare the Post Closing Trial Balance Adjusting Entries General Ledger Adjusted TB Financial Statements Closing Entries General Ledger Post Closing TB

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello

17th edition

978-1259692390

More Books

Students also viewed these Accounting questions