Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Instructions For the past several years alty Lopez has operated a part-time conting business from his home. As twy 1, 2018 Stefy decided to move

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Instructions For the past several years alty Lopez has operated a part-time conting business from his home. As twy 1, 2018 Stefy decided to move to rected quarters and to con business, which was to be known as Diamond Consulting on a time buss. Damond Consulting entered into the following transaction during ut 1 The following assets were received from Stelly Lopez in exchange for common stock ch. $13.500 Bocounts receivable, 520,800; supplies 53.200; and office equipment, 37.500. There were no haber received Pald two months rent on rental contract, 54,800. ? Pad the premiums on property and chaty neurance policier, 54.500 + Roosved Controm clients as an advancement for services to be provided, and recorded its unarodos, 8.500 5 Punthased additional is equipment on account from Office Station Co. 56,500 Recurved cash from clents on account. $15.000 10 Paid cash for a newspaper advertisement $400 12 Paid Office Station Co. for part of the date incurred on July 6, 85.200. 12 Recorded services provided on account for the period July 1-12, 513,300 14 Paid receptionist for two weeks salary, 51.750 Record the town transactions on Page 2 of the journal = Instructions Record the following transactions on Page 2 of the journal Jul 17 Recorded cash from cash clients for fees eamed during the period July 1-17, 59,450. 18 Paid cash for supplies, $800. 20 Recorded services provided on account for the period July 13-20, S6,650. 24 26 Recorded cash from cash clients fortes eamed for the period July 17-24,84,000. Received cash from cients on account. $12,000 Paid receptionist for two weeks' salary, 51,750 27 29 Paid telephone bill for July $325. 31 Paid electricity bill for July, $675 Recorded cash from cash clients for fees eamed for the period July 25-31, 55,200. 555 Recorded services provided on account for the remainder of July, $3,000. 31 Paid dividends. $12,500 Required: 1. Journalize each transaction in a two-column journa/ starting on Page 1, referring to the chart of accounts Secting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time) 2. A. Post the journal to a ledger of four-column accounts Download the spreadsheet in the Ledger panel and save the Excele to your computer. Use the spreadsheet to post the July Instructions Required: 1. Joumalize each transaction in a wo-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 fourmay at the time) 2. A. Post the ournal to a ledger of four column accounts Download the spreadsheet in the Ledger pane and save the Exow to to your computer. Use the spreactor to post the way transactions from the journal to a lediger 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 foumal in Congagenow. 3. Prepare an unacustod trial balance. If an amouit box does not require an entry, leave it baik 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to completo requirements (5) and (8) A. Insurance expired during July is $375, B. Supplies on hand on May 31 are $1,525 C. Depreciation of office equipment for July is $750. D. Accrued receptionist salary on July 31 is $175 E. Rent expired during July is $2,400 F. Unearned fees on July 31 are $2,750. 5. (Optional) on your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet Find one of it worksheet in the Excel spreadsheet you previously downloaded Instructions the following steps in Part 1 of this problem as well as stops 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. If an amount box does not require an entry, leave it blank 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6) A. Insurance expired during July is $375. B. Supplies on hand on July 31 are $1,525, C. Depreciation of office equipment for July is $750. D. Accrued receptionist salary on July 31 is $175. E. Rent expired during July is $2,400. F. Unearned toes on July 31 are $2,750 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-porlod work sheet and complete the work sheet. 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. Refer to the Chart of Accounts for exact wording of account titles B. Post the adjusting entries, inserting balances in the accounts affected, C. Add the appropriate posting reference to the adjusting entries in the journal in Conjlage NOW. 7. Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank Chart of Accounts x CHART OF ACCOUNTS Diamond Consulting General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Instructions For the past several years, Stelty Lopez has operated a part-time consulting business from his home. As of July 1, 2016. Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a fun-time basis. Diamond Consulting entered into transactions during July. In Part of this problem, the accounting cycle was completed up through the preparation of the adjusted trial balance Required: 8. A you completed the end-o period worksheet in Part I, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. Ila net loss has been incurred, enter that wount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons() on the income statement 2. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained eaming statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording or the answer choices for text entries an amount is zero, anter "0" C# you completed the end-of-period work shoot in Part I, use the adjusted trial balance figures to prepare a balance sheet as of Jy 31, 2018 Be sure to complete the statement heading Find assets must be entered in order according to account rumber Refer to the Accounts, Label and Amount Descriptions provided for the exact worting or the answer choices for text ordres. You will not need to enter colons () on the balance shoot, they will automatically insert where necessary, Negative amount should be indicated by the minus sign 3. A Jounaize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. Refer to the Chart of Accounts for exact Instructions 8. A. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement for the month ended July 31, 2018. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons() on the income statement. B. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a retained earnings statement for the month ended July 31, 2018. Be sure to complete the statement heading. Negative amount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If an amount is zero, enter "0" C. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare a balance sheet as of July 31, 2018 Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Refer to the Accounts Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. You will not need to enter colons() on the balance sheet; they will automatically insert where necessary. Negative amount should be indicated by the minus sign 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. Refer to the Chart of Accounts for exact wording of account titles B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal in CengageNOW Prepare a post-closing trial balance. Chart of Accounts Fo bu CHART OF ACCOUNTS wa Diamond Consulting General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 14 Supplies EXPENSES 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 SupJolies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Expense LIABILITIES 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees Instructions Chart of Accounts FO 14 Supplies EXPENSES bu 15 Prepaid Rent 51 Salary Expense wa 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 55 Insurance Experie con LIABILITIES 59 Miscellaneous Expense mo 21 Accounts Payable the 22 Salaries Payable 23 Unearned Fees ained by the EQUITY 31 Common Stock dan 32 Retained Earnings ber 33 Dividends 34 Income Summary hart of a Check My Work 10 more Check My Works remaining ali MacBook Pro Q A $ % 4 5 & 7 2 3 6 8 9 Labels and Amount Descriptions Labels Current assets Current liabilities Expenses For the Month Ended July 31, 2018 July 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net income Net loss Retained earnings, July 1, 2018 Retained earnings, July 31, 2018 Total assets Total current assets Total expenses Total liabilities Labels and Amount Descriptions Expenses For the Month Ended July 31, 2018 July 31, 2018 Property, plant, and equipment Amount Descriptions Change in retained earnings Net income Net loss Retained earnings, July 1, 2018 Retained earnings, July 31, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders' equity Total property, plant, and equipment Total stockholders' equity

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

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp

8th Edition

0538466790, 9780538466790

More Books

Students also viewed these Accounting questions

Question

What is your role within these groups?

Answered: 1 week ago