REPAIR SERVICES Accounting 101 Term Project Chpater 3-6

• You are the owner of Rockin Repair Service. Be sure to enter your name with the Capital and Drawing accounts wherever appropriate.

• Journalize the transactions for the month of October, beginning on page GJ 1. Be sure and list the Debit Account(s) first; Credit Account(s) next. Be sure and write a brief explanation for each transaction and skip a line between entries.

• Post the journal entries to the general ledger accounts. Be sure and use the Post Reference #s for each posting. See the textbook Figure 4.4 for how to post.

• Prepare the Trial Balance section of the worksheet.

• Prepare the Adjustments section of the worksheet.

  • Compute and record the adjustment for supplies used during the month. An inventory showed supplies on hand of $275.

  • One-month rent has been used up.

  • One-month insurance has been used up.

  • Record the adjustment for depreciation of Office Equipment of $85 for the month.

  • Record the adjustment for depreciation of Tools of $125 for the month.

• Complete the remaining columns of the worksheet.

• Using information from the worksheet, prepare an Income Statement for the month. Fill-in the correct date.

• Using information from the worksheet, prepare a Statement of Owners Equity. Fill-in the correct date.

• Using information from the worksheet, prepare a Balance Sheet using the report form. Fill-in the correct date.

• Journalize and post the Adjusting entries. About half the students forget to post these Adjusting Entries and it is easy points.

• Journalize and post the Closing entries. About half the students forget to post these Closing Entries and it is easy points.

• Prepare a Post-Closing Trial Balance in the appropriate tab.

ROCKIN REPAIR SERVICE

CHART OF ACCOUNTS

Assets Revenue

111 Cash 411 Income from Services

112 Accounts Receivable

114 Supplies

115 Prepaid Rent Expenses

116 Prepaid Insurance 511 Advertising Expense

121 Office Equipment 512 Rent Expense

122 Accum. Depr., Office Equipment 513 Supplies Expense

123 Tools 514 Insurance Expense

124 Accum. Depr., Tools 515 Utility Expense

125 Truck 516 Telephone Expense

Liabilities 517 Salary Expense

211 Accounts Payable 518 Truck Expense

Owners Equity 519 Depr. Exp. Office Equipment

311 Your Name, Capital 520 Depr. Exp. Tools

312 Your Name, Drawing

330 Income Summary

(See transactions on next page.)

Journalize the following transactions during the month of October:

Oct. 1 Invested $20,000 cash, and a truck with a fair market value of $7,500 into the business.

2 Paid $3,600 to U Store It for three months storage rent (October-December). Ck#1001

3 Paid $1800 to Geico for 1-year liability insurance. Ck# 1002

4 Bought tools from Sears on account, $7500. Inv. #X-13572

5 Bought a computer system from Hacked Computer Center, $5000, putting $3000 down and putting the balance on account, Ck. #1003, Inv. #Y-41522.

6 Bought supplies-Staples, $895. Inv. AB-0987 Ck. #1004.

7 Performed services for cash, $1850.

10 Performed services on account, $1285.

12 Paid Comcast bill (Telephone Exp) $420, ck#1005

13 Bought supplies on account from Staples, $1,175, Inv. AB-1425.

15 Received and paid the utility bill, $328, Ck. #1006.

15 Paid salary for part time bookkeeper, 10/1-10/15-$1000, Ck# 1007

20 Received The Times Review bill for advertising $434, Inv. #TR198.

21 Performed services $7,250, received $2,250 cash, balance due 30 days.

25 Paid personal telephone bill, $795, Ck. #1008.

27 Received $1285 from a credit customer who had services performed on Oct 10.

28 Repair services on truck-$495-ck#1009.

29 Withdrew cash for personal use, $1600, Ck. #1010.

30 Paid personal rent, $1200. Ck#1011.

30 Paid Staples, Inv. AB-1425, $500 on account, Ck#1012

31 Paid salary for part time bookkeeper, 10/16-10/31, $1000, Ck#1013

31 Received $2500 on account from customers.