Introduction:

The Dugas Company Balance Sheet for December 31, 2014 is shown at the top of the lab template

spreadsheet. There are two tabs, labeled Financial Statements and Ledger T Accounts. You will use

the spreadsheet as the starting point to perform the following tasks in the Accounting Cycle:

A. Use the Balance Sheet provided to initialize the T account balances.

B. Journalize transactions for the month of January 2015

C. Post the journalized transactions to the Ledger Accounts

D. Create an Unadjusted Trial Balance as of January 31, 2015

E. Post adjusting transactions to the Ledger Accounts

F. Create an Adjusted Trial Balance as of January 31, 2015

Instructions

:

All answers should appear in the appropriate place in the template spreadsheet:

1. Use the numbers in the Dugas Company Balance Sheet provided to post an initial balance for

the Ledger T Accounts, where appropriate.

2. Journalize the following transactions

a through g

(do not include the Jan 2 Example below).

Each transaction should be journalized as shown in the example below: with a date, a credit

transaction, and a debit transaction.

a. Put your answers in the indicated sections (under 2. TRANSACTIONS) on the template

spreadsheet.

Example

: On January 2, the business purchased office supplies on account, for $400.

Journalize these transactions:

a. On January 3, performed services for a customer and received $5,650 cash.

b. On January 11, paid $575 employee salaries that had been owed (see liabilities; do not post as a salary expense).

c. On January 15, collected $1,750 cash from a customer from the amount owed on their account.

d. On January 21, completed the remaining work due for Unearned Revenue.

e. On January 27, paid office rent of $2,200 for the month of January.

f. On January 28, paid $1400 on account (owed to a supplier).

g. On January 31, paid cash dividends of $3,100 to stockholders.

3. Post the transactions in the Ledger T Accounts. They are located under the Ledger T Accounts tab on the template spreadsheet. Put the date and amount in the appropriate places.

4. Prepare an Unadjusted Trial Balance as of January 31, 2015. It is set up for you on the template spreadsheet, following the TRANSACTIONS area.

Remember that a Trial Balance only shows accounts with a debit or credit balance, and it includes both Balance Sheet and Income Statement accounts.

5. Journalize the adjusting entries for the following. Put your answer in the ADJUSTMENT

TRANSACTIONS area of the template spreadsheet. The date should be Adj.

a. Prepaid Insurance of $100 has expired (has been used up).

6. Post the adjusting transactions in the Ledger T Accounts. The date should be Adj. Update

the totals in the affected T Accounts.

7. Prepare an Adjusted Trial Balance as of January 31, 2015, which is set up for you on the

template spreadsheet, following the ADJUSTMENT TRANSACTIONS area.

8. Save your spreadsheet and submit it via Canvas by the due date/time.

Dugas Company, Inc. Balance Sheet December 31, 2014 ASSETS LIABILITIES Current Assets Cash Accounts Receivable Prepaid Insurance Total Current Assets 17,500.00 S 2,000.00 1400.00 Current Liabilities Accounts Payable Unearned Revenue Salaries Payable Total Current Liabilities 500.00 600.00 20,900.00 Term Assets Long-Term Liabilities Land S 39,000.00 Total Long-Term Assets Total Long-Term Liabilities Total liabilities KHOLDERS EQUITY 39,850.00 Common Stock Retained Earnings Total Stockholders Equity Total Assets S 59,900.00 Total Liabilities & Stockholders Equity $59.900.00