Question
Part 2 will be posted separately (due to Chegg's guidelines). Complete accounting cycle The process that begins with analyzing and journalizing transactions and ends with
Part 2 will be posted separately (due to Chegg's guidelines).
Complete accounting cycle
The process that begins with analyzing and journalizing transactions and ends with the post-closing trial balance.
Part 1
Instructions
For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July:
Jul. | 1 | The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. |
1 | Paid three months rent on a lease rental contract, $6,000. | |
2 | Paid the premiums on property and casualty insurance policies, $4,500. | |
4 | Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. | |
5 | Purchased additional office equipment on account from Office Necessities Co., $5,100. | |
6 | Received cash from clients on account, $12,750. | |
10 | Paid cash for a newspaper advertisement, $500. | |
12 | Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. | |
12 | Provided services on account for the period July 112, $14,200. | |
14 | Paid receptionist for two weeks salary, $1,500. |
Record the following transactions on Page 2 of the journal:
Jul. | 17 | Received cash from cash clients for fees earned during the period July 117, $10,400. | ||||||||||||
18 | Paid cash for supplies, $1,000. | |||||||||||||
20 | Provided services on account for the period July 1320, $9,000. | |||||||||||||
24 | Received cash from cash clients for fees earned for the period July 1724, $8,500. | |||||||||||||
26 | Received cash from clients on account, $12,000. | |||||||||||||
27 | Paid receptionist for two weeks salary, $1,500. | |||||||||||||
29 | Paid telephone bill for July, $325. | |||||||||||||
31 | Paid electricity bill for July, $675. | |||||||||||||
31 | Received cash from cash clients for fees earned for the period July 2531, $7,100. | |||||||||||||
31 | Provided services on account for the remainder of July, $5,500. | |||||||||||||
31 | Jolene withdrew $20,000 for personal use. | |||||||||||||
Required: | ||||||||||||||
1. | Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) | |||||||||||||
2. | Post the July transactions.
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3. | Prepare an unadjusted trial balance. | |||||||||||||
4. | At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6).
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5. | (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. | |||||||||||||
6. |
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7. | Prepare an adjusted trial balance. |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gourmet Consulting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Shaded cells have feedback.
1. | Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) |
2. B. | Add the appropriate posting reference to the journal in CengageNOW. |
6. A. | Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. |
6. B. | Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.
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1. Identify what account is used and then what type of account is used for each transaction. Remember that each transaction will have at least one debit and one credit.
SPREADSHEET
Download and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.
2. A. | Post the July transactions from the journal to a ledger of four-column accounts. |
6. B. | Post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. |
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