Question
Listed below are transactions of Zane Bowens new start-up business, since opening his leadership consulting business in September 20X1. Mr. Bowen needs some assistance in
Listed below are transactions of Zane Bowens new start-up business, since opening his leadership consulting business in September 20X1. Mr. Bowen needs some assistance in preparing journal entries and financial statements for his first four months of operation in preparation to establish financial records to see how hes performing the first few months.
- Enter the transactions shown above in appropriate general ledger accounts (i.e. T-Accounts). Use the following ledger accounts: Cash, Accounts Receivable, Allowance for Uncollectible A/R, Supplies, Equipment, Accumulated Depreciation Equipment, Accounts Payable, Owners Capital, Revenue, Interest Income, Salaries/Wages Expense, Rent Expense, Repairs & Maintenance Exp, Research & Development Expense, Office Expenses, Supplies Expense, Depreciation Expense, Bad Debt Expense, and other applicable accounts.
- Prepare a trial balance for each month-end cutoff.
- Prepare a Balance Sheet for each month-end, an Income Statement for each month-end, a Statement of Owners Equity for each month-end, and a Statement of Cash Flows for year-end only.
| Oct. 1 | Purchases office equipment w/ cash for 2,400, 5 year useful life, straight line method. |
| Oct. 2 | Pays rent for office space, $700 for the month. |
| Oct. 5 | Receives $500 from customers on account. |
| Oct. 5 | Purchases office supplies for cash $338. |
| Oct. 8 | Receive cash of $1,500 from customers for services performed. |
| Oct. 10 | Pays miscellaneous office expenses, $530. |
| Oct. 12 | Bills customers $5,575 for services performed. |
| Oct. 15 | Pays Green Jacket Co. on account, $3,500. |
| Oct. 15 | Withdraws $3,000 cash from the business for personal use. |
| Oct. 20 | Receives $1,250 from customers on account. |
| Oct. 25 | Bills customers $4,000 for services performed. |
| Oct. 30 | Pays the following expenses in cash. Salaries and wages $1,500; miscellaneous office expenses $225; Travel Expenses $776. |
| Oct. 31 | Office Supplies used during September, $325 |
| Oct. 31 | Receives $35 interest income on deposit accounts. |
| Oct. 31 | Reserve for Uncollectible Accounts of $750 |
| Oct. 31 | Accounts deemed uncollectible of $150 |
| Oct. 31 | Prepares Closing Entries for Oct. |
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
