This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Wells Consulting Services for the month of January 2015.

Assume that you are the chief accountant for Wells Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 2 6. The chart of accounts for Wells Consulting Services has been expanded to include a few new accounts. Follow all the instructions to complete the accounting records for the month of January 2015.

Well's Consulting Services
Chart of Accounts
ASSETS (100-199)		REVENUE (400-499)
101	Cash	401	Service Fee Income
111	Accounts Receivable
121	Supplies	EXPENSES (500-599)
134	Prepaid Insurance
137	Prepaid Rent	511	Salaries Expense
141	Equipment	514	Utilities Expense
142	Accumulated Depreciation, Equipment	517	Supplies Expense
		520	Rent Expense
LIABILITIES (200-299)		523	Depreciation Expense, Equipment
		526	Advertising Expense
202	Accounts Payable	529	Maintenance Expense
		532	Telephone Expense
OWNER'S EQUITY (300-399)		535	Insurance Expense
301	Carolyn Wells, Capital
302	Carolyn Wells, Drawing
309	Income Summary

Instructions continued:

Set-up a General Ledger Account for each account listed in the Chart of Accounts. Copy in opening balance figures for January 1, 2015 into the proper General Ledger. (Hint: the necessary figures are from the Post-closing Trial Balance prepared on December 31, 2014, which appears below. (Only include an opening balance figure for the accounts listed with a balance, otherwise, there is no opening balance).

Analyze each business transaction, which appear on the next page and then journalize the transactions into the General Journal. Number the General Journal as Page 1 to begin journalizing the January 2015 transactions into the General Journal.

Post the transactions into the General Ledger accounts.(check figures for Cash & A/R are on page 4)

Prepare the Unadjusted Trial Balance Section of the Worksheet (AF-12A & 12B).

Prepare the Adjustments Section of the Worksheet (AF-12A & 12B). Number the General Journal as Page 4 to record the adjustments in the General Journal and post the adjustments to the General Ledger accounts.

Compute and record the adjustment for supplies used during the month. An inventory taken on January 31^st showed supplies of $2,000 on hand.

Compute and record the adjustment for expired insurance for the month.

Record the adjustment for expired rent of $4,000 for the month.

Record the monthly depreciation adjustment of $183 on the existing (old) equipment. The depreciation adjustment on the new equipment purchased in January will not begin until February.

Complete the Worksheet. Prepare the Adjusted Trial Balance Section of the Worksheet as well as extend the figures to the Income Statement & Balance Sheet Sections of the Worksheet.

Prepare the Income Statement and the Statement of Owners Equity for the month ending January 31, 2015 and the Balance Sheet as of January 31, 2015. There are no owner investments in January 2015.

Journalize and post Closing Entries. record the closing entries in the General Journal and post the closing entries to the General Ledger accounts.

Prepare a Post-closing Trial Balance. (See the check figure for the Post-Closing Trial

Wells' Consulting Services
Post-closing Trial Balance
December 31, 2014
Account Name/Title		Debit		Credit
CASH		$ 111,350
ACCOUNTS RECEIVABLE		5,000
SUPPLIES		1,000
PREPAID RENT		4,000
EQUIPMENT		11,000
ACCUMULATED DEPRECIATION-EQUIPMENT				$ 183
ACCOUNTS PAYABLE				3,500
CAROLYN WELLS, CAPITAL, 12/31/2014				128,667
Totals:		$ 132,350		$ 132,350

DATE		BUSINESS TRANSACTIONS
	January 2	Purchased supplies for $3,000 cash; issued Check No. 1015.
	2	Purchased & paid for a one-year insurance policy for $4,800; issued Check No. 1016.
	7	Sold & provided services during the first week of January. $15,000 in cash sales and
		$1,800 in credit sales.
	12	Collected a total of $1,500 in cash from credit customers during the first week
		of January.
	12	Issued Check No. 1017 for $2,150 to pay for special promotional advertising to
		new businesses on the local radio station during the month.
	13	Collected a total of $2,250 in cash from credit customers during the second week
		of January.
	14	Returned supplies that were damaged for a cash refund of $275.
	15	Sold & provided services during the second week of January. $18,250 in cash sales and
		$2,375 in credit sales.
	20	Purchased supplies for $1,800 from White's, Inc.; received Invoice No. 2384 payable
		in 30 days.
	20	Sold & provided services during the third week of January. $9,050 in cash sales and
		$5,850 in credit sales.
	20	Collected a total of $1,750 in cash from credit customers during the third week
		of January.
	21	Issued Check No. 1018 for $4,250 to pay for maintenance work on the office
		equipment.
	22	Issued Check No. 1019 for $2,750 to pay for special promotional advertising to
		new businesses on the local newspaper.
	23	Received the monthly telephone bill for $410 and paid it with Check No. 1020.
	26	Collected a total of $4,570 in cash from credit customers during the fourth week
		of January.
	27	Issued Check No. 1021 for $2,000 to a vendor, as payment on account for Invoice
		No. 2223.
	28	Sent Check No. 1022 for $1,050 in payment of the monthly bill for utilities.
	29	Sold & provided services during the fourth week of January. $14,050 in cash sales and
		$2,250 in credit sales.
	31	Issued Check No.'s 1023 - 1027 for $15,500 to pay the monthly salaries of the
		regular employees and three part-time workers.
	31	Issued Check No. 1028 for $6,000 for personal use.
	31	Issued Check No. 1029 for $1,050 to pay for maintenance services for the month.
	31	Purchased new equipment for $10,500 from Contemporary Equipment Company;
		issued Check No. 1030 for $5,500 and put the rest on account/credit. The equipment
		has a 5 year useful life & no salvage value but depreciation wont begin until February.
	31	Sold & provided services on January 31st. $2,850 in cash sales and $1,450 in credit sales.

Mini-Practice Set #1

Wells Consulting Services

Check Figures

The ending balance of the Cash Account in the General Ledger at January 31^st, 2015 is $132,435.

The ending balance of the Accounts Receivable Account in the General Ledger at January 31^st, 2015 is $8,655.

The ending balance of the Accounts Payable Account in the General Ledger at January 31^st, 2015 is $8,300.

On the worksheet, the Adjustments (Section 2) debit & credit column totals are $8,108.

The Post-Closing Trial Balance debit & credit column totals at January 31^st, 2015 is $168,990.