Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Project 1 : Your Service Company You have decided to start a service company. You will bill you customers based on an hourly rate. you
Project : Your Service Company
You have decided to start a service company. You will bill you customers based on an hourly rate. you charge $ per hour
Since this is the first month of operations, you will start with a Retained Earnings balance of $ The project file shows your chart of accounts but you will need to classify them by account type and financial statement.
The following transactions occurred during the month of September use accounts listed on your chart:
Sept You contributed $ cash to your business and you are the only stockholder.
Sept Received a bank loan of $ payable in years.
Sept Purchased and paid $ for a car to use in the business.
Sept Signed a lease on a building and prepaid months rent for $
Sept Purchased a oneyear insurance policy for the next year for $
Sept Purchased office supplies for $ to setup the office. You will pay for these in days.
Sept Performed work for customers. You completed hours of work and received payment immediately. Hint: For amount, multiply hours x amount you charge per hour.
Sept Received utility bill for this month for $ payable on October
Sept Performed work for customers. You completed hours of work and will receive payment within the next days. Hint: For amount, multiply hours x amount you charge per hour.
Sept Paid your employee for work performed salary of $
Sept Paid the utility bill received on Sept
Sept Received payment from customers for $
Sept Paid Dividends of $
Part :
Prepare journal entries for each of these transactions.
Post the transactions using the ledger cards use proper EXCEL formula for balance column
Prepare an Unadjusted Trial Balance use proper EXCEL cell referencing and formulas for debit and credit columns
You have decided to complete adjusting journal entries at the end of each month. Using the information below, prepare the adjusting journal entries:
a Supplies on hand are $
b One month of insurance has expired or been used.
c One month of depreciation on the car is $
d One month of rent has been used or passed.
e Accrued interest for one month on the bank loan is $ This will be paid quarterly hint: you are recording the September amount only
Post the adjusting entries using the same ledger cards.
Prepare the Adjusted Trial Balance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started