Name Billy Bob's Daycare Project ACCT2401 Transactions for January 20XX Use the following transactions to complete the first month of the Billy Bob's Daycare. Jan. 1 Billy Bob Caroll organized the daycare as a corporation and invested his savings of $42,000 cash in the business in return for capital stock. 1 1 1 2 3 14 Signed a contract to lease a building for $2,100 per month. Billy paid the first six months in advance. Paid cash for a one-year insurance policy $1,500. Purchased supplies on account for $215. Paid cash for playground equipment and furniture. The playground equipment cost $5,000 and the furniture cost $1,300. Purchased groceries on account for $300 (recorded as food expense). Paid employees' cash of $2,000. 17 Provided daycare services for 30 kids at $300/kid from January 3rd through today. Collected cash for 28 kids and the parent of the 2 of the kids agreed to pay in the future. Note: Amounts to be received in the future for services already provided are called account receivable. 21 Collected cash in advance of $900 for daycare services that will not be provided until next month (February). Note: Revenue recognition principle states that revenue is recorded when service is provided. No service will be provided until February so service is owed. 22 Collected cash of $600 from the parent that agreed to pay in the future on January 17th Note: Revenue was already recorded on January 17th. 28 Paid employees' cash of $2,000 and Billy a cash salary of $3,500 for time worked at the daycare. 31 Provided daycare services for 30 kids at $300/kid from January 17th through today. Collected cash for all 30 kids. 31 Paid Billy a dividend of $200. ADJUSTMENT INFORMATION at January 31, 20XX 1. Assets have the following residual values and useful lives: Furniture Playground Equipment Residual Value $100 $200 Useful Life 5 10 2. The employees had worked 24 hours at $10/hour since last being paid on January 28th. Remember that the cash account is NEVER used in the adjustment process. 3. A physical count of supplies revealed that $40 remains in supplies. 4. Utility bills that have been received but not paid totaled $220. 5. Don't forget to record the adjusting entries for one month of expired insurance and rent. ACCT2401 Instructions for Completing Comprehensive Problem The comprehensive problem provides an illustration of the basic accounting cycle. There are two due dates for the project. Students must complete the steps below (1-11) for January (the companies first month of operations) by MONDAY, June 19th. Steps 1-11 will also be completed for February (the companies second month of operations) by Friday, June 30th. The February transactions will be provided after I have graded your January portion of the project. 1. Record transactions with journal entries in the General Journal. 2. Post journal entries to the General Ledger. 3. Prepare the trial balance before adjustment (on the worksheet). 4. Prepare the adjusting journal entries. 5. Post the adjusting entries to the General Ledger. 6. Prepare the adjusted trial balance (on the worksheet). 7. Complete the worksheet. 8. Prepare closing journal entries. 9. Post the closing entries to the General Ledger. 10. Prepare the post-closing trial balance. 11. Prepare the following financial statements: a. Income Statement b. Statement of Stockholders' Equity c. Balance Sheet