For the past several years, Shane Banovich has operated a part-time consulting business from his home. As of October 1, 2012, Shane decided to move to rented quarters and to operate the business as a professional corporation, which was to be known as Epic Consulting, P.C., on a full-time basis. Epic Consulting entered into the following transactions during October: Oct. 1. The following assets were received from Shane Banovich in exchange for capital stock: cash, $12,000; accounts receivable, $6,000; supplies, $1,500; and office equipment, $9,000. There were no liabilities received. 1. Paid three months' rent on a lease rental contract, $4,800. 2. Paid the premiums on property and casualty insurance policies, $3,000. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $4,000. 5. Purchased additional office equipment on account from Office Station Co., $2,000. 6. Received cash from clients on account, $3,500. 10. Paid cash for a newspaper advertisement, $400. 12. Paid Office Station Co. for part of the debt incurred on October 5, $1,000. 12. Recorded services provided on account for the period October 1?12, $6,000. 14. Paid part-time receptionist for two weeks' salary, $1,000. Record the following transactions on Page 2 of the journal. 17. Recorded cash from cash clients for fees earned during the period October 1?17, $7,500. 18. Paid cash for supplies, $750. 20. Recorded services provided on account for the period October 13?20, $5,200. 24. Recorded cash from cash clients for fees earned for the period October 17?24, $3,700. 26. Received cash from clients on account, $5,500. 27. Paid part-time receptionist for two weeks' salary, $1,000. 29. Paid telephone bill for October, $250. 31. Paid electricity bill for October, $300. 31. Recorded cash from cash clients for fees earned for the period October 25?31, $2,800. 31. Recorded services provided on account for the remainder of October, $3,000. 31. Paid dividends of $8,000. Instructions 1. Journalize each transaction in a two-column journal starting on Page 1, 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.) 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Capital Stock 32 Retained Earnings 33 Dividends 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of October, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during October is $250. b. Supplies on hand on October 31 are $700. c. Depreciation of office equipment for October is $300. d. Accrued receptionist salary on October 31 is $250. e. Rent expired during October is $1,600. f. Unearned fees on October 31 are $1,800. 5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. (Income Summary is account #34 in the chart of accounts.) Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.

Problem 4-6A Name: Section: Score: 0% Key Code: [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. In the trial balances and work sheet, enter a zero in cells you would otherwise leave blank. 1. and 2. JOURNAL Date Page 1 Post. Ref. Debit Post. Ref. Description Debit Credit 2012 Oct. 1 1 2 4 5 6 10 12 12 14 JOURNAL Date Page 2 Description Credit 2012 Oct. 17 18 20 24 26 27 29 31 31 31 31 2., 6., and 9. GENERAL LEDGER Cash 11 Post. Ref. Dr. Cr. Dr. Item Post. Ref. Dr. Cr. Dr. Item Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Item Post. Ref. Dr. Cr. Dr. Item Date Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Item Balance Cr. 2012 Oct. 1 1 2 4 6 10 12 14 17 18 24 26 27 29 31 31 31 Accounts Receivable Date 12 Balance Cr. 2012 Oct. 1 6 12 20 26 31 Supplies 14 Date 2012 Oct. 1 18 31 Balance Cr. Adjusting Prepaid Rent Date 2012 Oct. 1 31 15 Item Balance Cr. Adjusting Prepaid Insurance Date 2012 Oct. 2 31 Item 16 Balance Cr. Adjusting O ffice Equipment Date Item 18 Balance Cr. 2012 Oct. 1 5 Accumulated Depreciation Date 2012 Oct. 31 Item 19 Balance Cr. Adjusting Accounts Payable Date 2012 Oct. 21 Balance Cr. 5 12 Salaries Payable Date 2012 Oct. 31 22 Balance Cr. Adjusting Unearned Fees Date 2012 Oct. 4 31 23 Item Balance Cr. Adjusting Capital Stock Date 31 Item Balance Cr. 2012 Oct. 1 Retained Earnings 32 Post. Date 2012 Oct. 31 31 Balance Item Ref. Dr. Cr. Dr. Item Post. Ref. Dr. Cr. Dr. Item Post. Ref. Dr. Cr. Dr. Item Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Post. Ref. Dr. Cr. Dr. Cr. Closing Closing Dividends Date 2012 Oct. 31 31 33 Balance Cr. Closing Income Summary Date 2012 Oct. 31 31 31 34 Balance Cr. Closing Closing Closing Fees Earned Date 2012 Oct. 12 17 20 24 31 31 31 31 41 Balance Cr. Adjusting Closing Salary Expense Date 2012 Oct. 14 27 31 31 51 Item Balance Cr. Adjusting Closing Rent Expense Date 2012 Oct. 31 31 52 Item Balance Cr. Adjusting Closing Supplies Expense Date 2012 Oct. 31 31 Item 53 Balance Cr. Adjusting Closing Depreciation Expense Date 2012 Oct. 31 31 Item 54 Balance Cr. Adjusting Closing Insurance Expense Date 2012 Oct. 31 31 Item 55 Balance Cr. Adjusting Closing Miscellaneous Expense Date 2012 Oct. 10 29 31 31 Item Closing 59 Balance Cr