Old MathJax webview

Old MathJax webview

SET B At the end of January 2021, the Leadership Coaching Agency had the following adjustments: 1. Supplies used during January totaled $500. 2. Expired rent for the month $2,000. 3. The desk and office furniture that were purchased on January 3 has an expected useful life of 5 years and no salvage value. The firm will use the straight-line method of depreciation for all furniture and equipment accounts. 4. The recording equipment that was purchased on January 8 has an expected useful life of 10 years and no salvage value. 5. Service worth $1,000 was done for a client and the client will pay next month in February. Instructions: 1. Complete the worksheet for the month. Begin by posting the unadjusted trial balance from Set A then enter all adjusting entries in the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. 4. Prepare a balance sheet. Chart of Accounts: Account Description Cash Account # 110 111 121 122 141 142 151 152 202 301 Accounts Receivable Supplies Prepaid Rent Office Furniture Accu. Depreciation Office Furn. Recording Equipment Accu. Depreciation-Rec. Equipt. Accounts Payable J. David, Capital J. David, Withdrawals Service revenue Advertising Expense Supplies Expense Rent Expense Salaries Expense Depreciation Expense Telephone Expense Utilities Expense 302 401 511 513 514 517 519 520 523 4 DATE TRANSACTIONS Jan. 2 John David invested $40,000 cash to start the business. 2 Issued cheque 201 for $8,000 to pay the rent for the office which covers a four-month period. 4 Purchased desk and other office furniture for $12,000 from Lowe's Office Supply. Issued cheque 202 for a $2,000 down payment with the balance due in 30 days. 5 Issued cheque 203 for $1,700 for supplies. 6 Performed services for $7,000 in cash. 7 Issued cheque 204 for $3,000 to pay for advertising expense. 8 Purchased recording equipment for $15,000 from Special Moves Inc.; issued cheque 205 for a down payment of $5,000 with the balance due in 30 days. 10 Performed services for $5,500 on account. 11 Issued cheque 206 for $3,000 to Lowe's Office Supply as payment on account. 12 Performed services for $10,000 in cash. 15 Issued cheque 207 for $6,200 to pay an employee's salary. 18 Received payments of $4,000 from credit clients on account. 20 Issued cheque 208 for $6,000 to Special Movers Inc. as payment on account. 25 Issued cheque 209 in the amount of $375 for the monthly telephone bill. 27 Issued cheque 210 in the amount of $980 for the monthly electric bill. 28 Issued cheque 211 to John David for $5,000 for personal living expenses. 30 Issued cheque 212 for $6,200 to pay the salary of an employee. SETA On January 1, 2021, John David opened the Leadership Coaching Agency. The following are the transactions for the month: 000 DATE TRANSACTIONS Jan. 2 John David invested $40,000 cash to start the business. 2 Issued cheque 201 for $8,000 to pay the rent for the office which covers a four month period. 4 Purchased desk and other office furniture for $12,000 from Lowe's Office Supply. Issued cheque 202 for a $2,000 down payment with the balance due in 30 days. 5 Issued cheque 203 for $1,700 for supplies. 6 Performed services for $7,000 in cash. Issued cheque 204 for $3,000 to pay for advertising expense. 8 Purchased recording equipment for $15,000 from Special Moves Inc.; issued cheque 205 for a down payment of $5,000 with the balance due in 30 days. 10 Performed services for $5,500 on account. 11 Issued cheque 206 for $3,000 to Lowe's Office Supply as payment on account. 12 Performed services for $10,000 in cash. 15 Issued cheque 207 for $6,200 to pay an employee's salary. 18 Received payments of $4,000 from credit clients on account. 20 Issued cheque 208 for $6,000 to Special Movers Inc. as payment on account. 25 Issued cheque 209 in the amount of $375 for the monthly telephone bill. 27 Issued cheque 210 in the amount of $980 for the monthly electric bill. 28 Issued cheque 211 to John David for $5,000 for personal living expenses. 30 Issued cheque 212 for $6,200 to pay the salary of an employee. Instructions: 1. Journalize the transactions. Be sure to number the journal pages and include a short description for each entry. 2. Post transactions to the ledger accounts. 3. Prepare a trial balance. SETE At the end of January 2021, the Leadership Coaching Agency had the following adjustments: 1. Supplies used during January totaled $500. 2. Expired rent for the month $2,000. 3 The desk and office furniture that were purchased on January 3 has an expected useful life of 5 years and no salvage value. The firm will use the straight-line method of depreciation for all furniture and equipment accounts. 4. The recording equipment that was purchased on January 8 has an expected useful life of 10 years and no salvage value. 5. Service worth $1,000 was done for a client and the client will pay next month in February Instructions: 1. Complete the worksheet for the month. Begin by posting the unadjusted trial balance from Set A then enter all adjusting entries in the worksheet. 2. Prepare an income statement. 3. Prepare a statement of owner's equity. 4. Prepare a balance sheet. Chart of Accounts: Account # 110 111 121 122 141 142 151 152 Account Description Cash Accounts Receivable Supplies Prepaid Rent Office Furniture Accu. Depreciation Office Furn. Recording Equipment Accu. Depreciation-Rec. Equipt. Accounts Payable J. David, Capital J. David, Withdrawals Service revenue Advertising Expense Supplies Expense Rent Expense Salaries Expense Depreciation Expense Telephone Expense Utilities Expense 202 301 302 401 511 513 514 517 519 520 523