J2 BUSI 121 Case Assignment - Fall 2020 (c) GENERAL JOURNAL Credit Debit Account Titles and Explanation Date BUSI 121 Case Assignment -Fall 2020 (a), (c) and (f) Cash Explanation Ref. Debit Date Credit Balance Accounts Receivable Debit Ref. Credit Balance Date Explanation Repair Supplies Credit Balance Ref. Debit Date Explanation Page 9 BUSI 121 Case Assignment - Fall 2020 Salaries Payable Date Explanation Ref. Debit Credit Balance Jack Roberts, Capital Date Explanation Ref. Debit Credit Balance Income Summary Explanation Date Ref. Debit Credit Balance Page 11 BUSI 121 Case Assignment - Fall 2020 Prepaid Insurance Ref. Debit Credit Explanation Balance Date Lawn Repair Equipment Ref. Debit Credit Balance Date Explanation Accumulated Amortization-Lawn Repair Equipment Ref. Debit Credit Explanation Balance Date Accounts Payable Ref. Debit Credit Balance Date Explanation Page 10 BUSI 121 Case Assignment -Fall 2020 Amortization Expense Date Explanation Ref. Debit Credit Balance Insurance Expense Ref. Explanation Debit Credit Balance Date Salaries Expense Ref. Balance Debit Credit Date Explanation Rent Expense Credit Balance Ref. Debit Explanation Date Page 13 BUSI 121 Case Assignment - Fall 2020 Jack Roberts, Withdrawals Date Explanation Ref. Debit Credit Balance Repair Revenue Debit Credit Balance Date Explanation Ref. Gas & Oil Expense Debit Credit Balance Ref. Date Explanation Repair Supplies Expense Ref. Balance Debit Credit Explanation Date Page 12 BUSI 121 Case Assignment - Fall 2020 PART 2-JACK SHACK LAWN REPAIR SERVICS You are required to do the accounting for a local service business (JACK SHACK LAWN REPAIR SERVICES) for the month of June. After the success of his lawn business, the following summer Jack Roberts opened Jack Shack Lawn Repair Services. During June the following transactions were completed: June 1 Jack invested $38,000 cash in the business. $8,000 came from his personal savings account, and $30,000 was an inheritance Jack received from his grandmother. Jack deposited this into a new business account with his local credit union. June 1 Purchased used lawn repair equipment for $30,750, paying $3.750 cash and the balance on account (the equipment had a list price of $27,000). June 1 Paid $1,500 for the June rent of a small shop. June 3 Purchased cleaning supplies for $2,225 on account. June 5 Purchased $3,120 on a 1-year insurance policy, effective June 1 June 12 Billed customers $6,280 for repair services done in June. June 18 Paid $5,000 of amount owed on equipment, and the full amount owed on cleaning supplies (see June 3rd entry) June 20 Paid $2,175 for employee salaries. June 21 Collected $3,140 from customers billed on June 12. June 25 Billed customers $7,250 for repair services. June 30 Paid gas and oil for the month on the equipment, $480. June 30 Withdrew $3,000 cash for personal use. Page 3 BUSI 121 Case Assignment -Fall 2020 PART 2 REQUIRED continued a Journalize and post the above June transactions in the Jack Shack General Journal (on General Journal page 1) (6 marks) (2 mark) b) Prepare an unadjusted trial balance as at June 30 (3 marks) c) Journalize and post the following month-end adjustments (on General Journal page 12) 1. Earned but unbilled fees at June 30 were $ (for this number use the last 4 digits of your student number...i.e. 441500...use $1,500. 2. Amortization on the equipment for the month was $ 2.700, (for this number use the month you were born x $100 i.e. if born in July use $700 (7th month x $100 = $700). 3. One-twelfth of the insurance expired. A count showed $580 of cleaning supplies on hand at June 30. 5. Accrued but unpaid employee salaries were $925. 6. The company signed an agreement to purchase new equipment for $21,500. The equipment will be shipped in July, (1 mark) d) Prepare an adjusted trial balance at June 30. You may use a worksheet - but it will not be marked e) Prepare the Jack Shack June 30th financial statements in good form: 1. Income statement, 2. Statement of owner's equity, 3. Classified balance sheet. (3 marks) (2 marks) f) Journalize and post the closing entries (General Journal page 13). (1 mark) g) Prepare a post-closing trial balance at June 30. (2 marks) Overall presentation and understanding of the accounting process. TOTAL 20 marks Page 4 J2 BUSI 121 Case Assignment - Fall 2020 (c) GENERAL JOURNAL Credit Debit Account Titles and Explanation Date BUSI 121 Case Assignment -Fall 2020 (a), (c) and (f) Cash Explanation Ref. Debit Date Credit Balance Accounts Receivable Debit Ref. Credit Balance Date Explanation Repair Supplies Credit Balance Ref. Debit Date Explanation Page 9 BUSI 121 Case Assignment - Fall 2020 Salaries Payable Date Explanation Ref. Debit Credit Balance Jack Roberts, Capital Date Explanation Ref. Debit Credit Balance Income Summary Explanation Date Ref. Debit Credit Balance Page 11 BUSI 121 Case Assignment - Fall 2020 Prepaid Insurance Ref. Debit Credit Explanation Balance Date Lawn Repair Equipment Ref. Debit Credit Balance Date Explanation Accumulated Amortization-Lawn Repair Equipment Ref. Debit Credit Explanation Balance Date Accounts Payable Ref. Debit Credit Balance Date Explanation Page 10 BUSI 121 Case Assignment -Fall 2020 Amortization Expense Date Explanation Ref. Debit Credit Balance Insurance Expense Ref. Explanation Debit Credit Balance Date Salaries Expense Ref. Balance Debit Credit Date Explanation Rent Expense Credit Balance Ref. Debit Explanation Date Page 13 BUSI 121 Case Assignment - Fall 2020 Jack Roberts, Withdrawals Date Explanation Ref. Debit Credit Balance Repair Revenue Debit Credit Balance Date Explanation Ref. Gas & Oil Expense Debit Credit Balance Ref. Date Explanation Repair Supplies Expense Ref. Balance Debit Credit Explanation Date Page 12 BUSI 121 Case Assignment - Fall 2020 PART 2-JACK SHACK LAWN REPAIR SERVICS You are required to do the accounting for a local service business (JACK SHACK LAWN REPAIR SERVICES) for the month of June. After the success of his lawn business, the following summer Jack Roberts opened Jack Shack Lawn Repair Services. During June the following transactions were completed: June 1 Jack invested $38,000 cash in the business. $8,000 came from his personal savings account, and $30,000 was an inheritance Jack received from his grandmother. Jack deposited this into a new business account with his local credit union. June 1 Purchased used lawn repair equipment for $30,750, paying $3.750 cash and the balance on account (the equipment had a list price of $27,000). June 1 Paid $1,500 for the June rent of a small shop. June 3 Purchased cleaning supplies for $2,225 on account. June 5 Purchased $3,120 on a 1-year insurance policy, effective June 1 June 12 Billed customers $6,280 for repair services done in June. June 18 Paid $5,000 of amount owed on equipment, and the full amount owed on cleaning supplies (see June 3rd entry) June 20 Paid $2,175 for employee salaries. June 21 Collected $3,140 from customers billed on June 12. June 25 Billed customers $7,250 for repair services. June 30 Paid gas and oil for the month on the equipment, $480. June 30 Withdrew $3,000 cash for personal use. Page 3 BUSI 121 Case Assignment -Fall 2020 PART 2 REQUIRED continued a Journalize and post the above June transactions in the Jack Shack General Journal (on General Journal page 1) (6 marks) (2 mark) b) Prepare an unadjusted trial balance as at June 30 (3 marks) c) Journalize and post the following month-end adjustments (on General Journal page 12) 1. Earned but unbilled fees at June 30 were $ (for this number use the last 4 digits of your student number...i.e. 441500...use $1,500. 2. Amortization on the equipment for the month was $ 2.700, (for this number use the month you were born x $100 i.e. if born in July use $700 (7th month x $100 = $700). 3. One-twelfth of the insurance expired. A count showed $580 of cleaning supplies on hand at June 30. 5. Accrued but unpaid employee salaries were $925. 6. The company signed an agreement to purchase new equipment for $21,500. The equipment will be shipped in July, (1 mark) d) Prepare an adjusted trial balance at June 30. You may use a worksheet - but it will not be marked e) Prepare the Jack Shack June 30th financial statements in good form: 1. Income statement, 2. Statement of owner's equity, 3. Classified balance sheet. (3 marks) (2 marks) f) Journalize and post the closing entries (General Journal page 13). (1 mark) g) Prepare a post-closing trial balance at June 30. (2 marks) Overall presentation and understanding of the accounting process. TOTAL 20 marks Page 4