MIKE'S QUALITY REPAIR SERVICES Accounting 101 Term Project (POST CLOSING TRIAL BALANCE)
MIKE'S QUALITY REPAIR SERVICES Accounting 101 Term Project In this project, you will use the concepts you have learned in Chapters 1 - 6 to complete the accounting functions for a business for a single month. You will start with the initial investment of cash in the business, and end the month by preparing the month-end adjustments and financial statements. The purpose of this project is to bring together the concepts that you have learned so far in this class, and see how all of the pieces fit together. CHART OF ACCOUNTS Assets Revenue 111 Cash 411 Income from Services 112 Accounts Receivable 114 Supplies 116 Prepaid Insurance 121 Office Equipment 122 Accum. Depr., Office Equipment 123 Tools 124 Accum. Depr., Tools 125 Truck Expenses 511 Advertising Expense 512 Supplies Expense 513 Insurance Expense 514 Utilities Expense 515 Salaries Expense 516 Truck Expense 521 Depreciation Expense - Office Equipment 522 Depreciation Expense - Tools Liabilities 211 Accounts Payable Owner's Equity 311 Mike Hammer, Capital 312 Mike Hammer, Drawing 330 Income Summary Instructions Download the Excel file found in Canvas, Mike's Quality Repair Services 2019.xlsx. You will complete all work for this assignment in that file, and upload it to Canvas when completed. Journalize the transactions for the month of January, 2019, beginning on page Gj1. Be sure and list the Debit Account(s) first; Credit Account(s) next (credited accounts should be indented a few spaces). Write a brief explanation for each transaction, and skip a line in- between transactions. Post the journal entries to the general ledger accounts. Be sure and use the Post Reference #s for each posting. Prepare the Trial Balance section of the worksheet. Prepare the Adjustments section of the worksheet. o Compute and record the adjustment for supplies used during the month. An inventory showed supplies on hand of $250. o One month insurance has been used up. o Record the adjustment for depreciation of Office Equipment of $85 for the month. o Record the adjustment for depreciation of Tools of $125 for the month. Complete the worksheet. Prepare an Income Statement, Statement of Owner's Equity, and Balance Sheet for the month. Be sure to add the date to each financial statement. Journalize and post the Adjusting entries. Journalize and post the Closing entries. Prepare a Post-closing Trial Balance. Be sure to add a date to the trial balance. Transactions for the month: You made the following transactions for Mike's Quality Repair Services during the month of January: Jan. 1 Invested $15,000 cash, and a truck with a fair market value of $8,500 into the business. Paid $1800 to Liberty Mutual for a 1-year insurance policy. The policy is effective immediately. Ck# 1001 Bought tools from Sears on account, $7500, Inv. #X-1357 Bought computer system from Ben's Computer Center, $5000, putting $2500 down and putting the balance on account, Ck. #1002, Inv. #Y-4152. Bought supplies Office Mart, $850, CK. #1003. 7 Performed services for cash, $1,650. 10 Performed services on account, $1275. Received and paid telephone bill, $420, ck#1004 (Note: use an expense account from the Chart of Accounts that best fits this situation). Bought supplies on account from Office Mart, $900, Inv. AB1477. Received and paid the utility bill, $415, Ck. #1005 15 Paid salary for office clerk, 1/1-1/15-$1000, CK# 1006. 20 Received The Times Review bill for advertising for the month, $410, Inv. #TR198 (Note that you did not PAY the bill - you only received it). 21 Performed services $7,250, received $2,250 cash, with the balance due in 30 days. 27 Received from clients $1,275, for work completed on January 10. 28 29 30 30 Paid for oil change on truck, $90, ck#1007. Withdrew cash for personal use, $3,000, CK #1008. Paid salary for office clerk, 1/16-1/30, $1000, ck#1009. Made partial payment of $500 to Office Mart for supplies purchased on January 13th, Ck#1010. MIKE'S QUALITY REPAIR SERVICES POST-CLOSING TRIAL BALANCE Account Debit Credit TOTALS
