Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Project Data: Sam Parker owns and operates a consulting firm called Parker Consulting. The business began operating in October 2020. Transactions for October and November

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Project Data: Sam Parker owns and operates a consulting firm called Parker Consulting. The business began operating in October 2020. Transactions for October and November 2020 have been recorded and posted Parker Consulting had the following transactions in December 2020 Dec 2 Provided $3,950 consulting services to Gomez Company on account. 3 Paid $1,025 cash to Hillside Mall for Parker Consulting's share of mall advertising costs. 4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co that Parker Consulting's bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Parker Consulting 20 Completed a project for Lyn Corporation and received $6,425 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Parker $193 for business automobile mileage. 31 S. Parker withdrew $2,100 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance. d. As of December 31, the only employee of Parker Consulting had not been paid for four days of work at $125 per day e. The computer system, acquired for $8,000 on October 1, is expected to have a five-year life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a four- year life with no salvage value. Page 3 of 15 Below are the journal entries recorded by Parker Consulting for October and November 2020. NOTE: These are for your information only: you do not need to do anything with these entries. PAGE 1 GENERAL JOURNAL ACCOUNT DATE POST REF DEBIT CREDIT 2020 Oct 1 Cash Office Equipment Computer Equipment S. Parker Capital 101 163 167 301 45 000 20,000 8.000 73,000 1 Prepaid Insurance Cash 2.220 128 101 2.220 2 Prepaid Rent Cash 131 101 3.300 3,300 9 Computer Supplies Accounts Payable 2,545 126 201 2,545 16 Accounts Receivable Computer Services Revenue 106 403 4,800 4.800 31 Wages Expense Cash 623 101 875 875 Nov 2 Mileage Expense Cash 676 101 320 320 5 Accounts Payable Cash 201 101 2.545 2,545 8 Cash Accounts Receivable 101 106 4,800 4,800 14 Cash Computer Services Revenue 101 403 4,633 4,633 106 5,208 23 Accounts Receivable Computer Services Revenue 5,208 30 S. Parker, Withdrawals Cash 302 101 2.000 2,000 Page 4 of 15 Name: mework Project 1 - forking Papers General Journal for Requirements 1,4 & 10 GENERAL JOURNAL DATE ACCOUNT 2020 December Transactions (20 points) Dec 2 POST REF PAGE CREDIT DEBIT Page 5 of 15 3 GENERAL JOURNAL ACCOUNT Adjusting Entries (17 points) DATE PAGE CREDIT POST REF DEBIT 2020 Dec Closing Entries (10 points) Page 6 of 25 TE dger for Requirements 2, 5, & 10 Note: Ledger includes all entries from the first two months of operations for Parker Consulting Continue by posting the December transactions Date Oct. 16 Nov. 8 Nov. 23 106: Accounts Receivable Debit Credit Balance 4.800 4,800 4.800 0 5,208 5,208 Date Oct. 1 Oct. 1 Oct. 2 Oct. 31 Nov. 2 Nov. 5 Nov. 8 Nov. 14 Nov. 30 101: Cash Debit Credit 45,000 2.220 3,300 875 320 2,545 4.800 4,633 2.000 Balance 45,000 42.780 39,480 38,605 38,285 35.740 40,540 45,173 43,173 Date Oct. 9 126: Computer Supplies Debit Credit 2,545 Balance 2,545 Date Oct 1 128: Prepaid Insurance Debit Credit 2.220 Balance 2.220 131: Prepaid Rent Debit Credit 3,300 Date Oct. 2 Balance 3,300 163: Office Equipment Debit Credit 20,000 Date Oct. 1 Balance 20.000 164: Accum Dep Office Equipment Date Dobit Credit Balance Date Oct. 1 167: Computer Equipment Debit Credit Balance 8.000 8,000 Page 7 of 15 odger (Continued 168: Accum Dep Computer Equipment Dato Debit Credit Balance Date Oct. 9 Nov. 5 201: Accounts Payable Debit Credit 2.545 2.545 Balance 2,545 0 210: Wages Payable Debit Credit 236: Unearned Consulting Revenue Date Debit Credit Balance Date Balance Date Oct. 1 301: S. Parker, Capital Debit Credit Balance 73,000 73,000 302: S. Parker, Withdrawals Date Debit Credit Balance Nov. 30 2,000 2,000 612: Dep. Expense - Office Equipment Date Debit Credit Balance Date Oct. 16 Nov. 14 Nov. 23 403: Consulting Revenue Debit Credit Balance 4,800 4,800 4,633 9,433 5,208 14,641 613: Dep. Expense-Computer Equipment Date Debit Credit Balance Date Oct. 31 623: Wages Expense Debit Credit 875 Balance 875 637: Insurance Expenses Debit Credit Balance 640: Rent Expense Debit Credit Date Date Balance Page 8 of 15 dger (Continued) 652: Computer Supplies Expense Date Debit Credit Balance 655: Advertising Expense Debit Credit Balance Date 676: Mileage Expenses Debit Credit 320 684: Repairs Expense-Computer Date Debit Credit Balance Date Nov. 2 Balance 320 901: Income Summary Debit Credit Balance Date Working Paper for Requirement 3 3 points Parker Consulting Trial Balance December 31, 2020 DEBIT CREDIT Page 10 of 15 working Paper for Requirement 6 3 points Parker Consulting Adjusted Trial Balance December 31, 2020 DEBIT CREDIT Page 11 of 15 Working Papers for Requirements 7, 8 & 9 Parker Consulting Income Statement (10 points) For Three Months Ended December 31, 2020 Parker Consulting Statement of Owner's Equity (5 points) For Three Months Ended December 31, 2020 Page 12 of 15 working Papers for Requirements 6, 7 & 8 (continued) Parker Consulting Balance Sheet (10 points) December 31, 2020 Page 13 of 15 working Papers for Requirements 6, 7 & 8 (continued) Parker Consulting Balance Sheet (10 points) December 31, 2020 Page 13 of 15 Parking Papers for Requirement 10 Parker Consulting Post-Closing Trial Balance December 31, 2020 DEBIT CREDIT Page 14 of 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Business Management From Planning To Performance

Authors: Gary Cokins

1st Edition

1937352358, 978-1937352356

More Books

Students also viewed these Accounting questions

Question

What are your goals for this interview today?

Answered: 1 week ago

Question

=+1. How will you measure awareness objectives?

Answered: 1 week ago

Question

=+2. How will you measure acceptance objectives?

Answered: 1 week ago

Question

What distinguishes craft and industrial unions from each other?

Answered: 1 week ago