sing Entries and the Postclosing Trial Balance Eli's Consulting Services Postclosing Trial Balance December 31, 2019 ACCOUNT NAME DEBIT CREDIT Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Trayton Elil, Capital Totals 111 35000 5000 00 1000 00 4 000 00 11000 00 183 00 3500 00 12866 7 00 132|350|00. 1321350100- Service Business Accounting Cycle 10. Joarnmlice anl pos the ad I1. Journalize and puia the cl 12. Eli's Consulting Services This project will give you on opportunity to apply your knowledge of ue mouth of procedures by handling alt the accounting work of Eli's Consuhting Services Analyze: Compare fhe Janeat hown in Figure 6.4 . what change. oncurred b. What uhanges occuried la principles ad January 2020 Assume that you are the chief accountant for Eli's Consulting Services. During Januar) INTRODUCTION will use the same types of records and procedures that yos leurned about in Chapter ers 1 through to include a few new Has there been air tmprow 6. The chan of accounts for Eli's Consulting Services has been espanded t accounts. Follow the instructions to complete the accounting records for the moath of January DATE TRANSACTIONS Jan 2 Puichased supp 2 Purchased a oris 7 Sold services fo 12 Collected a tot Ell'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 Revenue 401 Fees Income Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation Expense-Equipment 526 Advertising Expense 529 Maintenance Experise 532 Telephone Expense 535 Insurance Expense January 12 issued Check 1 nesses on the 13 Collected a tot January 14 Returned supe 5 Sold services 20 Purchased sug 20 Soid services 20 Collected a to 1 202 Accounts Payable Owner's Equity 301 Trayton Eli, Capital 302 Trayton Eli. Drawing 309 Income Summary January 21 issued Check 22 issued Check nesses in the 23 Recered the 26 Collected a . Open the genera ledger accounts and enler the balances for January 1, 2020. Obtain the INSTRUCTIONS necessary figures from the postclosing trial halance prepaned on December 31, 2019, which appears in Figure 6.3 2. Analyze each transaction and record it in the general journal. Use page 3 to begin Jamuary's 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 January 27 Issued Che 28 Sent Check 29 Sold servca 31 Issued Che ees and ti 31 Issund Che 31 Issued Cha 31 Purchasect ssued Ch year ife as 1 Sold serv a. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. b. Compute and record the adjustment for expired insurance for the month c. Record the adjustment for one month of expired rent of $4,000, d. Record the adjustment for depreciation of $183 on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February 6. Complete the worksheet. 7. Prepare an income statement for the month. 8. Prepare a statement of owner's equity u 1 Cosing Entris and the Postclosing Trial Bnc 9. Prepare a bulance sheet using the report ore 19 Journalize and post the adjusting entries 11. Journaliee and post the closing entries 12. Prepare a postclosing trial balince Analyze: Compore the Janusry 31 balance sheet you prepared with the December 31 balunce sheet shown in Figure 6.4 a. What changes occurred in total ussets, liubilities, ancd the owner's endin h. What changes occurred in the Cash and Accounts Receivable accoents c. Has there been an insprnvement in the firm's fimancial pesition? Why or why nor g Cycle rounting principles and for the oath of Services g sapital? During Jamuary, the busi out in Chapters 1 thevigh to include a few new ed he nsoeth of Jandary DATE TRANSACTIONs Jan, 2 Purchased supplies for $7,000; issued Check 1015 2 Purchased a one-year insurance policy for $8,400, 1ssued Check 1016 7 12 Sold services for $20,000 in cash and $5,000 on credit duaing the Sirst week of January Callected a total of 54,000 on account from credit customers during the first week of Januay 12 Issued Check 1017 for $3,600 to pay for special promotional advertising to new busi nesses on the local redio slation during the month Collected a total of $4,500 on account from credit customers during the second week of January 13 14 Returned supplies that were damaged for a cash refund of $750 Sold services for $20,700 in cash and $2.300 on credit during the second week of January. 20 Purchased supplies for $5,000 from White's, Inc received Invoice 2384 peyable in 30 days 20 Sold services for 512,500 in cash and $3,500 on credit during the third week of January 20 Callected a total of $5,600 on account from credit customers during the third week of 15 se January 21 Issued Check 1018 for $7,065 to pay for maintenance work on the office equipment 22 Issued Check 1019 for $3,600 to pay for special promotional adivertising to new busi nesses in the local newspaper Received the monthy telephone bill for $1,025 and paid it wilth Check 1020 Collected a total of $1,600 on account from credit customers during the fourth week of January 23 26 20 Obtain the er 31. 2019, which 27 Issued Check 1021 for $3,000 to Office Plus as payment on account for invoice 2223 28 Sent Check 1022 for $2,675 in payment of the monthly bill or utlities 29 Sold services for $19.000 in cash and $2.750 on credit during the foarth week of January 31 Issued Checks 1023-1027 for $32,800 to pay the monthly salaries of the regular employ to begin January's ees and three part-time workers. 31 Issued Check 1028 for $12,000 for personal use. 31 issued Check 1029 for $4,150 to pay for maintenance services for the month 31 Purchased additional equipment for 515,000 trom Contemparary Equipment Company . An imventory issued Check 1030 for $10,000 and bought the rest on credit. The equipment has a five- year life and no salvage value. r the moth The in Fehnuary 1 Sold services for $7,600 in cash and $1,620 on credit on January 31