Service Business Accounting Cycle Ell's Consulting Services This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Elis Consulting Services for the month of January 2020. INTRODUCTION Assume that you are the chief accountant for Eli's Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Ell's Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January Eli's Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies Revenue 401 Fees Income Expenses 511 Salaries Expense Eli's Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated Depreciation-Equipment Liabilities 202 Accounts Payable Owner's Equity 301 Trayton El Capital 302 Trayton El Drawing 309 Income Summary Revenue 401 Fees Income Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation Expenso-Equipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone Expense 535 Insurance Expense 4 INSTRUCTIONS 1. Open the general ledger accounts and enter the balances for January 1, 20X2. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 20X1, which appears in Figure 6.3. 2. Analyze each transaction and record it in the general journal Use pago 3 to begin January's transactions 3. Post the transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet 5. Prepare the Adjustments section of the worksheet. 2. Compute and record the adjustment for sapplies used during the month. An inventory taken on January 31 showed supplies or $9,400 on hand b. Compute and record the adjustment for expired insurance for the month . Record the adjustment for one month of expired rent of $4,000 1. Record the adjustment for depreciation of $183 on the old equipment for the month. The flest adjustment for depreciation for the new quipment will be recorded in February 6. Complete the worksheet 7. Prepare an income statement for the month Preparatement of owner's equity 9. Prepare a balance sheet ning the report form Page 195 10 Soumate and post the adjusting entries 11. Journal and post the closing entries 12. Prepare a portiosing trial balance 4 Analyze: Compare the January 31 balance sheet you prepared with the December 31 balance sheet shown in Figure 6.4 1. What changes occurred in total assets, labilities, and the owner's ending capital? b. What changes occurred in the Cash and Accounts Receivable accounts? c. Has there been an improvement in the firm's financial position? Why or why not? DATE 2 2 7 TRANSACTIONS Purchased applica for $14.000; inued Check 1015 Purchased a one year insurance policy for $16,800, issued Check 1016 Sold services for $30,000 in cash and $20,000 on credit during the first week of January Collected a total of $8.000 on account from credit customers during the first week of January Issued Check 1017 for $7.2010 to pay for special promotional advertising to new businesses on the local radio station durir Collected a total of 89,000 on account from credit customers during the second week of January Returned supplies that were damaged for a cash refund of $1.500) 12 13 14 15 Sold services for 541.400 in cash and $4.500 on credit during the second week of January Purchased supplies for 10,000 from White's Inc. received lovilce 2354 payable in 30 days 20 20 Sold services for $25.000 in cash and $2.000 on credit during the third week of January 20 Collected a total of $11,200 on scount for credit customs during the third workflow 20 20 20 21 22 26 27 Purchased supplies for 10,000 from White's Inc., received Invoice 2384 payable in 30 days. Sold services for $25,000 in cash and $7.00 on credit during the third week of January Collected a total of 11.200 on account from credit customers during the third week of January Issued Check 1018 for $14.130 to pay for maintenance work on the office equipment Issued Check 1019 for $7.200 to pay for special promotional advertising to new businesses in the local newspaper, Received the monthly telephone bill for $2,050 and paid it with Check 1020 Collected a total of $3,200 an account from credit customers during the fourth week of January Issued Check 1021 fue $6,000 to Ottice Pias as payment on account for invoice 2223. Sent Check 1023 for $5.350 in payment of the monthly bill for utilities Sold services for $38.000 in cash and 55 500 on credit during the fourth week of January Issued Checks 1023-1027 for $63.600 to pay the monthly salaries of the regular employees and three part time workers Issued Check 1038 for $34,000 for personal use uued Check 1029 for 58 300 to pay for maintenance wrices for the month Purchased additional equipment for 30.000 from Contemporary Equipment Compasy, issued Check 10.30 for $20,000 Sold services for $15.200 in cash and $1.240 on credit on my 28 29 31 31 31 31 31 Service Business Accounting Cycle Ell's Consulting Services This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Elis Consulting Services for the month of January 2020. INTRODUCTION Assume that you are the chief accountant for Eli's Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Ell's Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January Eli's Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies Revenue 401 Fees Income Expenses 511 Salaries Expense Eli's Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated Depreciation-Equipment Liabilities 202 Accounts Payable Owner's Equity 301 Trayton El Capital 302 Trayton El Drawing 309 Income Summary Revenue 401 Fees Income Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation Expenso-Equipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone Expense 535 Insurance Expense 4 INSTRUCTIONS 1. Open the general ledger accounts and enter the balances for January 1, 20X2. Obtain the necessary figures from the postclosing trial balance prepared on December 31, 20X1, which appears in Figure 6.3. 2. Analyze each transaction and record it in the general journal Use pago 3 to begin January's transactions 3. Post the transactions to the general ledger accounts. 4. Prepare the Trial Balance section of the worksheet 5. Prepare the Adjustments section of the worksheet. 2. Compute and record the adjustment for sapplies used during the month. An inventory taken on January 31 showed supplies or $9,400 on hand b. Compute and record the adjustment for expired insurance for the month . Record the adjustment for one month of expired rent of $4,000 1. Record the adjustment for depreciation of $183 on the old equipment for the month. The flest adjustment for depreciation for the new quipment will be recorded in February 6. Complete the worksheet 7. Prepare an income statement for the month Preparatement of owner's equity 9. Prepare a balance sheet ning the report form Page 195 10 Soumate and post the adjusting entries 11. Journal and post the closing entries 12. Prepare a portiosing trial balance 4 Analyze: Compare the January 31 balance sheet you prepared with the December 31 balance sheet shown in Figure 6.4 1. What changes occurred in total assets, labilities, and the owner's ending capital? b. What changes occurred in the Cash and Accounts Receivable accounts? c. Has there been an improvement in the firm's financial position? Why or why not? DATE 2 2 7 TRANSACTIONS Purchased applica for $14.000; inued Check 1015 Purchased a one year insurance policy for $16,800, issued Check 1016 Sold services for $30,000 in cash and $20,000 on credit during the first week of January Collected a total of $8.000 on account from credit customers during the first week of January Issued Check 1017 for $7.2010 to pay for special promotional advertising to new businesses on the local radio station durir Collected a total of 89,000 on account from credit customers during the second week of January Returned supplies that were damaged for a cash refund of $1.500) 12 13 14 15 Sold services for 541.400 in cash and $4.500 on credit during the second week of January Purchased supplies for 10,000 from White's Inc. received lovilce 2354 payable in 30 days 20 20 Sold services for $25.000 in cash and $2.000 on credit during the third week of January 20 Collected a total of $11,200 on scount for credit customs during the third workflow 20 20 20 21 22 26 27 Purchased supplies for 10,000 from White's Inc., received Invoice 2384 payable in 30 days. Sold services for $25,000 in cash and $7.00 on credit during the third week of January Collected a total of 11.200 on account from credit customers during the third week of January Issued Check 1018 for $14.130 to pay for maintenance work on the office equipment Issued Check 1019 for $7.200 to pay for special promotional advertising to new businesses in the local newspaper, Received the monthly telephone bill for $2,050 and paid it with Check 1020 Collected a total of $3,200 an account from credit customers during the fourth week of January Issued Check 1021 fue $6,000 to Ottice Pias as payment on account for invoice 2223. Sent Check 1023 for $5.350 in payment of the monthly bill for utilities Sold services for $38.000 in cash and 55 500 on credit during the fourth week of January Issued Checks 1023-1027 for $63.600 to pay the monthly salaries of the regular employees and three part time workers Issued Check 1038 for $34,000 for personal use uued Check 1029 for 58 300 to pay for maintenance wrices for the month Purchased additional equipment for 30.000 from Contemporary Equipment Compasy, issued Check 10.30 for $20,000 Sold services for $15.200 in cash and $1.240 on credit on my 28 29 31 31 31 31 31