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Accounting Cycle Project Part 1 - Regular Transactions The following transaction occurred for Omega Car Supplies during the period ended 12/31/x1. They provide services to customers and sell products. March 1 The company was formed with 2,000,000 shares authorized - $1 par value. - $1 . March 20 The company issued stock for $200,000 at par value. April 7 Purchased supplies for $6,000 on account April 28 Paid $2,200 to get a patent on their special cash wash soap. May 10 Purchased inventory for $45,000 on account. The company uses the LIFO method under a perpetual system to account for inventory May 19 Purchase equipment with a Note Payable of $50,000 due in 5 years. The company used the straight-line method for depreciation. The note requires annual principle payment of $10,000 May 31 Purchase two parcels of land for $62,000 - Parcel A was $10,000 and Parcel B was $52,000. Parcel A was used to build a storage facility. They do not know what they will do with Parcel B so the intention is to just hold it. June 1 Purchased two years of Insurance for $8,000. June 26 Provided goods to a customer worth $18,000. Inventory had a cost of $9,200. The customer paid $8,000 cash and the rest on account. July 7 Provided goods of $33,000 to a customer for cash. Inventory had a cost of $12,400 July 26 Paid employee wages of $6,500. August 9 Customer paid $5,000 for goods to be provided in the future. August 17 Received $12,000 on account for goods provided. Inventory had a cost of $6,700. Sept 10 Invested $7,000 of excess cash in securities - intend to hold them for several years. Sept 22 Collected $5,000 from a customer that owed you money for goods previously provided Sept 29 Some of the $5,000 worth equipment purchased on May 19th was sold for $2,000. Oct 1 Paid rent for the period of $15,000 for the next year. $. Oct 19 Received interest income on investments of $1,000 Nov 8 Received a utility bill for $2,000 for utility services received. (Paid on account) Nav 27 Paid $2,500 of the amount owed for supplies Dec 15 Paid dividend of $5,000 Accounting Cycle Project Chart of Accounts You can add additional accounts as needed) 100-Cash 300 - Common Stock 110 - Account Receivable 310 - Retained Earnings 120-Inventory 320 - Dividends 125 - Supplies 400-Service Revenue 130 - Prepaid Insurance 410 - Interest Income 140 - Prepaid Rent 450 - Gain on Sales 150 - Marketable Securities 160 - Equipment 500 - Cost of Goods Sold 165 - Accumulated Depreciation 510-Salary Expense 170 - Land 515 Rent Expense 175-Land-held as investment 520-Utilities Expense 180-Patent 530 - Depreciation Expense 190-Interest Receivable 540 - Insurance Expense 200 - Account Payable 550 - Supplies Expense 220 Salary Payable 560 - Income Tax Expense 230-Utilities Payable 570 - Interest Expense 240 - Unearned Revenue 590-Loss on Sale 250-Note Payable 250-Taxes Payable 270 - Interest Payable Part 1 - Instruction - Due 10-11-submit in moodle drop box You will prepare the following in excel: 1. General Journal a. Journal entries - full proper journal entry with descriptions b. Post entries to ledger 2. Ledger -T accounts a. Show beginning balance b. Post all activity - make sure to include reference to journal entry c Show ending balance 3. Trial Balance a. Unadjusted Trial Balance
