For the past several years, Ellisyn Lou has decided to open a consulting business on September $1,2023,$ which is to be known as March Consulting.

March Consulting entered into the following transactions during September. Transactions:

September:

$1$ Ellisyn Lou deposited $$60,000$ into March Consulting as the sole owner.

$2$ March Consulting purchased supplies, $$3,500$; and office equipment, $$25,500$ with a $4-$year note

payable of $$20,000$ and the remainder in cash.

$3$ Paid four months$$ rent on a lease rental contract, $ $8,000.$

$4$ Paid the yearly premium on property and casualty insurance policies, $$12,000.$

$5$ Ellisyn took clients out for a meal to discuss business, $$100$

$6$ Purchased additional office equipment on account from Office Equip Co$.,$ $$5,500.$

$8$ Paid cash for a newspaper advertisement, $$200.$

$10$ Recorded services provided on account, $$3,500.$

$11$ Recorded cash for services provided, $$1,000$

$12$ Received cash from clients as an advance payment for services to be provided in the future, $$7,000.$

$15$ Paid part$-$time receptionist for two weeks$$ salary, $$800$

$16$ Recorded cash for services provided, $$5,000.$

$17$ Recorded services provided on account, $$2,500.$

$18$ Paid cash for supplies, $$4000.$

$19$ Received cash from clients on account, $$2,000.$

$21$ Paid Office Equip Co$.$ for part of the debt incurred on the $6$th$,$ $$3,500$

$24$ Recorded cash for services provided, $$2,500.$

$25$ Received the electric bill for the month, $$200.($Will pay it later$)$

$26$ Paid part$-$time receptionist for two weeks$$ salary, $$800$

$27$ Paid water bill for the month, $$50.$

$28$ Recorded cash for services provided, $$1,500.$

$29$ Recorded services provided on account, $$3,000.$

$30$ Ellisyn Lou withdrew $$4,000$ for personal use.

Project $-$ Comprehensive Problem Spring $2024$

Instructions

$1.$ Journalize each transaction in a two$-$column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited.

$($Do not insert the account numbers in the journal at this time.$)$

RETL $261$

$101$ Cash

$120$ Accounts Receivable

$122$ Allowance for Doubtful Accounts $124$ Supplies

$125$ Prepaid Rent

$126$ Prepaid Insurance

$150$ Office Equipment

$155$ Accumulated Depreciation

$201$ Accounts Payable

$205$ Note Payable

$210$ Salaries Payable

$220$ Unearned Fees

$301$ E$.$ Lou, Capital

$2.$ Post the journal to a ledger of four$-$column accounts.

$310$ E$.$ Lou, Drawing $320$ Income Summary $401$ Fees Earned

$500$ Bad Debt Expense $501$ Salary Expense $502$ Rent Expense

$503$ Supplies Expense

$504$ Depreciation Expense $505$ Insurance Expense $507$ Interest Expense

$509$ Advertising Expense $512$ Utilities Expense

$515$ Meal Expense

$3.$ Prepare a trial balance as of September $31,2023,$ listing all the accounts in the order given in the ledger.

$4.$ Journalize adjusting entries.

a$)$ One month of Insurance has expired.

b$)$ Supplies on hand on at the end of the month are $$2,000.$

c$)$ Accrued receptionist salary for the remainder of the month is $$200.$

d$)$ One month of rent was used.

e$)$ Unearned fees at the end of the month are $$3,000.$

f$)$ $$1,000$ of fees needs to be accrued

g$)$ Calculate the interest for one month on the Note Payable using a $4\%$ interest rate. $($Use

the Note Payable account and round to nearest whole number.$)$

h$)$ Depreciation of office equipment for the month based on SL depreciation over $5$ years.

$($Round to nearest whole number$)$

i$)$ Bad Debt is $1\%$ of sales for the month. $($Round to nearest whole number$)($Hint: Use the

revenue balance after other adjusting entries have been completed$)$

$5.$ Post the adjusting entries

$6.$ Prepare the adjusted trial balance for the end of the month.

$7.$ Prepare an income statement, a statement of owner$$s equity, and a classified balance sheet.

$8.$ Journalize and post the closing entries. $($Income Summary is account #$320$ in the chart of accounts.$)$ Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry

$9.$ Prepare a post$-$closing trial balance for the end of the month.