For the past several years, Samantha Hogan has operated a part-time consulting business from her home. As of July 1, 20Y9, Samantha decided to move to rented quarters and to operate the business, which was to be known as Arborvite Consulting, on a full-time basis. Arborvite Consulting entered into the following transactions during July:
Jul.1The following assets were received from Samantha Hogan: cash, $25,700; accounts receivable, $30,200; supplies, $5,100; and office equipment, $12,100. There were no liabilities received.
1Paid three months rent on a lease rental contract, $8,100.
2Paid the premiums on property and casualty insurance policies, $6,100.
3Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $10,800.
5Purchased additional office equipment on account from Office Necessities Co., $6,900.
6Received cash from clients on account, $17,300.
10Paid cash for a newspaper advertisement, $680.
12Paid Office Necessities Co. for part of the debt incurred on July 5, $4,100.
12Provided services on account for the period July 112, $19,200.
14Paid receptionist for two weeks salary, $2,000.
Record the following transactions on Page 2 of the journal:
Jul.17Received cash from cash clients for fees earned during the period July 117, $14,100.
18Paid cash for supplies, $1,400.
20Provided services on account for the period July 1320, $12,200.
24Received cash from cash clients for fees earned for the period July 1724, $11,500.
26Received cash from clients on account, $16,300.
27Paid receptionist for two weeks salary, $2,000.
29Paid telephone bill for July, $440.
31Paid electricity bill for July, $910.
31Received cash from cash clients for fees earned for the period July 2531, $9,600.
31Provided services on account for the remainder of July, $7,400.
31Samantha withdrew $27,100 for personal use.
Required:
1.Journalize 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 July transactions.
A.Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.
B.Add the appropriate posting reference to the journal in CengageNOW.
3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank.
4.At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6).
Insurance expired during July is $510.
Supplies on hand on July 31 are $3,900.
Depreciation of office equipment for July is $540.
Accrued receptionist salary on July 31 is $190.
Rent expired during July is $2,700.
Unearned fees on July 31 are $4,100.
5.(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.
6.
A.Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31.
B.Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.
7.Prepare an adjusted trial balance.
GENERAL LEDGER Account Cash Account No. 11 DATE ITEM POST. REF. DEBIT CREONT BALANCE DENT CREDIT 1 2 3 5 6 7 8 9 10 12 13 14 15 16 17 Account: Accounts Receivable Account No. 12 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 N- 2 4 5 6 Account: Supplies Account No. 14 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 Account: Prepaid Rent Account No. 15 DATE ITEM POST, REF DEBT CREDIT BALANCE DEBIT CREDIT Ledger Fort Chat Account: Prepaid Rent Account No. 15 BUANCE DEBIT CEDIT DATE ITEM POST. REF DEBIT CREDIT 1 2 Account: Prepaid Insurance Account No. 16 DATE ITEM POST. REF DEBIT CREDIT BALANG DEBIT CREDIT 1 2 Account: Office Equipment Account No. 18 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT COM 1 2 Account: Accumulated Depreciation Account No. 19 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 2 Account: Accounts Payable Account No. 21 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEST CREDIT 1 2 Account: Salaries Payable Account No. 22 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEST EDIT Account: Uncamned Fees Account No. 23 DATE ITEM POST. REF. DEBIT CREDIT MALANG DEBIT DRET 1 2 Account: Samantha Hogan, Capital Account No. 31 SALANCE DEST GEDIT DATE ITEM POST. REF DEDIT CREDIT 1 Ledger EoP Work Sheet + DATE ITEM POST. REF. DEBIT CREDIT BALANG DEBIT GEOT 1 2 Account: Samantha Hogan, Drawing Account No. 32 DATE ITEM POST. REF DEBIT CREDIT BALANG DEBIT CREDIT 1 2 Account: Fees Eamed Account No. 41 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 4 5 6 2 B Account: Salary Expense Account No. 51 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 4 Account: Rent Expense Account No. 52 DATE ITEM POST. REF. DEBIT + CREDIT BALANCE DEBIT CREDIT 1 2 Account: Supplies Expense Account No. 53 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT 1 Ladao Account: Supplies Expense Account No.53 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 Account: Depreciation Expense Account No.54 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 Account: Insurance Expense DATE Account No. 55 BALANCE DEBIT CREDIT ITEM POST. REF. DEBIT CREDIT 1 N Account: Miscellaneous Expense Account No. 59 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 4 Aborvite Consulting End-of Period Spreadsheet (Work Sheet) For the Month Ended July 31, 2019 ADRUSTED COME STATIMENT TRIAC BALANCE CREDIT ADJUSTMENTS DET CIT TRIAL BALANCE CREDIT BALANCE DAT ODA DENT UNADJUSTED DENT 25,700 30,200 5,100 8,100 6.100 6,900 8,100 6,100 5,100 ACCOUNT TITLE Cash Accounts Receivable Supplies Prepaid Rent Prepaid insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees Samantha Hogan, Capital Samantha Hogan, Drawing Fees Earned Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Miscellaneous Expense 10,800 10,800 6.900 6.900 17.300 17.300 680 680 Net Income Complete accounting cycle, Part 1 Chart of Accounts Journal Ledger Unndjusted Trial Balance Adjusted Trial Balance Ledger Download the attached SPREADSHEET and save the Excel Nie to your computer. Use the spreadsheet to post the July transactions from the journal to edge of four-column accounts Be sure to save your work in Excel as It will be used to complete the following stepa in Part 1 of this problem as well as tope in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this probleen. 2 A. Post the July transactions from the journal to a ledger af four-colham accounts. 6. B. Post the adjusting entries to the lediger of four-column accounts, inserting balances is the accounts affected Feedback Check My Work 2. Remember as you prepare your 4 column accounts: For each debit and each credit recorded in the journal, Identify what account is used and transfer the amount from the Journal to the appropriate ledger account 6. The adjusting entries are prepared directly from the adjustment data or from the information in the Adjustments columns of your work sheet. Double-check to make sure your adjusting entries affect both an income statement account and a balance sheet account. When posting these entries to the ledger accounts you combine the adjustments with the unadjusted balances for each account, such that debit balance and debit adjustments are added to obtain a new debit total. Likewise credit balances and credit adjustments are added to obtain a new credit total. You will take the difference between a credit unadjusted amount and a debit adjustment to obtain the adjusted amount. Likewise, you caloulate the difference between a debit unadjusted amount and a credit adjustment to obtain the new adjusted ledger amount Next Check My Work Email Instructor Save and Exit Submit Assignment for G All work saved Record the following transactions on Page 2 of the journal: Jul. 17 18 20 24 26 27 Received cash from cash clients for fees earned during the period July 1-17, S14,100 Pald cash for supplies, $1,400. Provided services on account for the period July 13-20, $12,200. Received cash from cash clients for fees earned for the period July 17-24, $11,500. Received cash from clients on account, $16,300. Paid receptionist for two weeks' salary, $2,000. Paid telephone bill for July, $440. Paid electricity bill for July $910. Received cash from cash clients for fees earned for the period July 25-31. $9,600. Provided services on account for the remainder of July, $7,400. Samantha withdrew $27,100 for personal use. 29 31 31 31 31 GENERAL LEDGER Account Cash Account No. 11 DATE ITEM POST. REF. DEBIT CREONT BALANCE DENT CREDIT 1 2 3 5 6 7 8 9 10 12 13 14 15 16 17 Account: Accounts Receivable Account No. 12 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 N- 2 4 5 6 Account: Supplies Account No. 14 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 Account: Prepaid Rent Account No. 15 DATE ITEM POST, REF DEBT CREDIT BALANCE DEBIT CREDIT Ledger Fort Chat Account: Prepaid Rent Account No. 15 BUANCE DEBIT CEDIT DATE ITEM POST. REF DEBIT CREDIT 1 2 Account: Prepaid Insurance Account No. 16 DATE ITEM POST. REF DEBIT CREDIT BALANG DEBIT CREDIT 1 2 Account: Office Equipment Account No. 18 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT COM 1 2 Account: Accumulated Depreciation Account No. 19 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 2 Account: Accounts Payable Account No. 21 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEST CREDIT 1 2 Account: Salaries Payable Account No. 22 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEST EDIT Account: Uncamned Fees Account No. 23 DATE ITEM POST. REF. DEBIT CREDIT MALANG DEBIT DRET 1 2 Account: Samantha Hogan, Capital Account No. 31 SALANCE DEST GEDIT DATE ITEM POST. REF DEDIT CREDIT 1 Ledger EoP Work Sheet + DATE ITEM POST. REF. DEBIT CREDIT BALANG DEBIT GEOT 1 2 Account: Samantha Hogan, Drawing Account No. 32 DATE ITEM POST. REF DEBIT CREDIT BALANG DEBIT CREDIT 1 2 Account: Fees Eamed Account No. 41 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 4 5 6 2 B Account: Salary Expense Account No. 51 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 4 Account: Rent Expense Account No. 52 DATE ITEM POST. REF. DEBIT + CREDIT BALANCE DEBIT CREDIT 1 2 Account: Supplies Expense Account No. 53 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT 1 Ladao Account: Supplies Expense Account No.53 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 Account: Depreciation Expense Account No.54 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 Account: Insurance Expense DATE Account No. 55 BALANCE DEBIT CREDIT ITEM POST. REF. DEBIT CREDIT 1 N Account: Miscellaneous Expense Account No. 59 DATE ITEM POST. REF. DEBIT CREDIT BALANCE DEBIT CREDIT 1 2 3 4 Aborvite Consulting End-of Period Spreadsheet (Work Sheet) For the Month Ended July 31, 2019 ADRUSTED COME STATIMENT TRIAC BALANCE CREDIT ADJUSTMENTS DET CIT TRIAL BALANCE CREDIT BALANCE DAT ODA DENT UNADJUSTED DENT 25,700 30,200 5,100 8,100 6.100 6,900 8,100 6,100 5,100 ACCOUNT TITLE Cash Accounts Receivable Supplies Prepaid Rent Prepaid insurance Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees Samantha Hogan, Capital Samantha Hogan, Drawing Fees Earned Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Miscellaneous Expense 10,800 10,800 6.900 6.900 17.300 17.300 680 680 Net Income Complete accounting cycle, Part 1 Chart of Accounts Journal Ledger Unndjusted Trial Balance Adjusted Trial Balance Ledger Download the attached SPREADSHEET and save the Excel Nie to your computer. Use the spreadsheet to post the July transactions from the journal to edge of four-column accounts Be sure to save your work in Excel as It will be used to complete the following stepa in Part 1 of this problem as well as tope in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this probleen. 2 A. Post the July transactions from the journal to a ledger af four-colham accounts. 6. B. Post the adjusting entries to the lediger of four-column accounts, inserting balances is the accounts affected Feedback Check My Work 2. Remember as you prepare your 4 column accounts: For each debit and each credit recorded in the journal, Identify what account is used and transfer the amount from the Journal to the appropriate ledger account 6. The adjusting entries are prepared directly from the adjustment data or from the information in the Adjustments columns of your work sheet. Double-check to make sure your adjusting entries affect both an income statement account and a balance sheet account. When posting these entries to the ledger accounts you combine the adjustments with the unadjusted balances for each account, such that debit balance and debit adjustments are added to obtain a new debit total. Likewise credit balances and credit adjustments are added to obtain a new credit total. You will take the difference between a credit unadjusted amount and a debit adjustment to obtain the adjusted amount. Likewise, you caloulate the difference between a debit unadjusted amount and a credit adjustment to obtain the new adjusted ledger amount Next Check My Work Email Instructor Save and Exit Submit Assignment for G All work saved Record the following transactions on Page 2 of the journal: Jul. 17 18 20 24 26 27 Received cash from cash clients for fees earned during the period July 1-17, S14,100 Pald cash for supplies, $1,400. Provided services on account for the period July 13-20, $12,200. Received cash from cash clients for fees earned for the period July 17-24, $11,500. Received cash from clients on account, $16,300. Paid receptionist for two weeks' salary, $2,000. Paid telephone bill for July, $440. Paid electricity bill for July $910. Received cash from cash clients for fees earned for the period July 25-31. $9,600. Provided services on account for the remainder of July, $7,400. Samantha withdrew $27,100 for personal use. 29 31 31 31 31