Pr 4-5B

1-10 #5 opotional

224 Chapter 4 Completing the Accounting Cyele PR 4-5B Complete accounting cycle Net income: several years, Jeff Horton has operated a part time consuliting business fruen his home. As of April 1, 2019, Jeff decided to move to rented quarters and to operate business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud entercd into the following transactions during April: Ape. 1. ie following assets were received fromJeff Horton ash, S20,000s accounts receivable, $14,700, supplies, s3.300; and office equipment, $12,000. There were no liabilities received. three months' rent on a lease rental contract, $6,000. Paid 2. Paid the premiums on property and casualty insurance . Received cash from cients as on property and casualty insurance policies, $4,200. an advance payment for services to be provided and recorded it as unearned fees, s9,400. 5. Purchased additional oflice equipment on account fron Smith Office om Smith Office Supply Co. 6. 10. 12. $8,000 Received cash from clients on account, $11,70o Paid cash for a newspaper advertisement, $350. 1 Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400 12. Provided services on account for the period April 1-12, $21,900. 14. Paid receptionist for two weeks' salary, $1,650. Record tbe following transactions on Page 2 of tbe journal cash from cash clients for fees earned during the period April 1-16, $6,600 18. Paid cash for supplies, $725 20. Provided services on account for the period April 13-20, $16,800 24. Received cash from cash clients for fees earned for the period April 17-24, 26. Received cash from clients on account, $26,500 27. Paid receptionist for two weeks' salary, $1,650 29. Paid telephone bill for April, $540. 30. Paid electricity bill for April, $760. 30. Received cash from cash clicnts for fees eamed for the period April 25-30, $5,160. 30. Provided services on account for the remainder of April, $2,590. 30. Jeff withdrew $18,000 for personal use Instructions 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation-Office Equipment 54 Depreclation Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Jeff Harton, Capital 32 eff Horton, Drawing 41 Fees Earned 51 Salary Expense 52 Supplies Expense 53 Rent Expense 55 Insurance Expense 59 Miscellaneous Expense 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance Chapter 4 Completing the Accounting Cycle 225 4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during April is $350. b. Supplies on hand on April 30 are $1,225. c. Depreciation of office equipment for April is $400. d. Accrued receptionist salary on April 30 is $275. e. Rent expired during April is $2,000. f. Unearned fees on April 30 are $2,350. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and 6. Journalize and post the adjusting entries. Record the adjnsting entries on Page 3 of completc the spreadsheet. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owner's equity, and a balance sheet. 9. Prepare and post the closing entries. Record dhe closing journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry entries on Page 4 of the 10. Prepare a post-closing trial balance