Homework 1

The assets, liabilities, and owners equity accounts for Carries Accounting Firm are below:

Cash

Office Supplies

Office Equipment

Accounts Receivable

Accounts Payable

Carrie, Capital

Carrie, Drawing

Professional Fees

Utility Expense

Rent Expense

Salary Expense

Transactions:

1. Carrie invested $75,000 cash
2. Purchased office equipment on account from Torres company on account $12,000
3. Purchased office supplies $1000 on account
4. Received $700 for from a client
5. Purchased office supplies for $300
6. Paid salaries to employees $2500
7. Billed customer Diamond for services provided $3000
8. Paid utility bill $600
9. Paid rent $3000
10. Paid $6000 to Torres company (2)
11. Received $2000 from Diamond (7)
12. Carrie withdrew $3000 for personal use

13. Prepaid Insurance $24000 for one year

14. Prepaid rent for 6 months ($2000 per month)

Adjusting entries:

15. Inventory indicated $300 in supplies have been used

16. $800 in salaries earned by Jan 31 but will not be paid until February

17. Office Equip depreciates at $200 per month

18. Received $65,000 for contract to be completed in February

New Accounts:

Prepaid insurance

Insurance Expense

Prepaid Rent

Supplies Expense

Salaries Payable

Accumulated Depreciation

Depreciation Expense

Unearned Revenue

Closing Entries:

1) Additional JE - Post to ledger - New Trial Balance

2) Adjusting entries - Post to Ledger - Adjusted Trial Balance

3) Income Statement, Statement of Owner's Equity, Balance Sheet

4) Closing Entries - Post to Ledger - Post-Closing Trial Balance