Wills Tax Service The Mid-Term Problem covers a monthly accounting cycle for Williams Tax Services sole prop which is owned by John William. The business operations be on January 1, 2021. Williams Tax Service is a service organization and is located 123 South Main Street in Graham, North Carolina. The company employs me employer reception bookkeeper, Margin Sanos, who is paid l Wills Tax Service res the building they operate in and prepaid $12,000 months on January 1, 2021. Rent expense in allocated monthly. They also $6.000 for a twelve-month insurance policy on Jamary 1.3021, and allocate ince expense mohly for expired insurance. To help in the operations of the busines Wills Tax Service purchased $15,000 worth of equipment on January 1.3121 which will be depreciate over five years (60 month at $250 per WTax Service accepts both cash and credit on account from their have some clients who wish to pay in advance for their services (anced fees are taken into Fees Earned as they are earned The Wills Tax Service prepares monthly financial statements, including the home Statement, the Statement of Owner's Equity, and a Classified Balance Sheet. These d statement dibuted internally as well as outside users such as A chart of accounts for Williams Tax Service is given, along with a pot-closing trial balance for March 30,2021. You will use the Excel template to complete the activities for the month of April. The general ledger includes beginning balances for Ap During the mouth of April, 2021, Williams Tax Service entered into the g Apr. 3. Received cash from clients as advance payments for services to be provided. $4.500 (Unearned Feest 5. Received cab from clients on account, $10,500 8. Paid cash for a water bill for 5600 10. Paid Office Depot on acco$2.500 15. Recorded services provided on account for the period of April 1-15.10.500 15. Pail receptionist bookkeeper a semi-thly salary of $3,500 15. Recorded cash from cash clients for fees earned during the period of April 1-15, $7.500 16. Purchased office supplies account $2,300 20 Paid selephone bill. 51060 21 Paid electricity bill, $8.50 25. Recorded cash received from clients on account $6.200 30. Pail reception bookkeeper a semi-mthly salary of $3300 30 Recorded cash from cash clients for foes and for the period April 16-30,39,400 30. Recorded services on account for April 16-30,510.000 30. John with $10,000 for personal 1. Journalize each of the April transactions in the two-collecti for April 1-15 on page 5 of the journal Reclamations for April 16-30 Pout the transactions from the journal to the pledge a Prepare led trial balance on the worksheet provided Using information below, the lecture notes and the uljasted vial balance, prepare and Supplies on hand on April 30, 5900, Inance espined during the meth of April Expired for the month of April. Depreciation on office of April Uned fees All 30,57800 1. Prepare an income statement statement of owner's pity and clad hunc Prepare and jize the closing is of the journal. Post the closing entries in the general ledger a 10 Prepare a post-closing trial balance as of April 30, 2001 2.1. Company Background Information Williams Tax Service The Mid-Term Problem covers a monthly accounting cycle for Williams Tax Service, a sole proprietorship which is owned by John Williams. The business operations began on January 1, 2021. Williams Tax Service is a service organization and is located at 123 South Main Street in Graham, North Carolina. The company employs one employee, a receptionist/bookkeeper, Margaret Simmons, who is paid semi-monthly. Williams Tax Service rents the building they operate in and prepaid $12,000 for twelve months rent on January 1, 2021. Rent expense is allocated monthly. They also prepaid $6,000 for a twelve-month insurance policy on January 1, 2021, and allocate insurance expense monthly for expired insurance. To help in the operations of the business, Williams Tax Service purchased $15,000 worth of equipment on January 1, 2021 which will be depreciated over five years (60 months) at $250 per month. Williams Tax Service accepts both cash and credit (on account) from their clients, and have some clients who wish to pay in advance for their services (unearned fees). These fees are taken into Fees Earned as they are earned. Williams Tax Service prepares monthly financial statements, including the Income Statement, the Statement of Owner's Equity, and a Classified Balance Sheet. These statements are distributed internally as well as to outside users such as creditors and clients. A chart of accounts for Williams Tax Service is given, along with a post-closing trial balance for March 30, 2021. You will use the Excel template provided in Chapter 4 of this booklet to complete the activities for the month of April. The general ledger includes beginning balances for April. There is a sample gradesheet in Chapter 3 which will give you a breakdown of the points. If you have any questions on how to complete this problem, contact your instructor. This problem should help you to understand the accounting cycle and how accounting works. Have fun! 2.2. Chart of Accounts Willams Tax Service Chart of Accounts Act 31 Cash 32 14 15 Prepaid he 36 38 Accumulated Depreciation 221 B 313 Unearned fe 31 32 Fees tamed L SE Salary Experce 530 M 16: 59 Utates Expense After closing the books at the end of March, Williams Tax Service had the following post-closing trial balance: Williams Tax Service Post-Closing Trial Balance March 31, 2021 Acct # 11 Account Title Cash Debit Credit 15,500 12 Accounts Receivable 14,700 14 Supplies 1,500 15 Prepaid Rent 9,000 16 Prepaid Insurance 4,500 18 Office Equipment 15,000 19 Accumulated Depreciation 750 21 Accounts Payable 5100 23 Unearned Fees 9,000 31 John Williams, Capital 45,350 Totals 60,200 60,200 During the month of April, 2021, Williams Tax Service entered into the following transactions Apr. 3. Received cash from clients as advance payments for services to be provided, $4,500 (Unamed Fees Received cash from clients on account, $10,500 Paid cash for a water for $600 10. Paid Office Depot on account, $2.500. 15. Recorded services provided on account for the period of April 1-15, $10,500 15 Paid receptionist/hookkeeper a semi-monthly salary of $3,000 15 Recorded cash from cash clients for fees esmed during the period of Apr 1-15, $7,500 16 Purchased office supplies on account, $2,300 20 Paid telephone f $1,000 21. Paid electricity bil, $850 25. Recorded cash received from clients on account, $6,200 30 Paid receptionist/bookkeeper a semi-monthly salary of $3,000 30 Recorded cash from cash clients for fees earned for the period April 16-30, $9,000- 30 Racorded services on account for April 16-30, $10,000 30 John withdrew $10,000 for personal use Note: Go to the Assignment for additional information. The Excel Template is in Chapter 4 of this booklet. Instructions: 1. Journalize each of the Acril transactions in the two-column journal provided in the Excel template Record transactions for April 1-15 on page 5 of the journal Record transactions for Apr 15-30 on page 6 of the journal 2. Post the transactions from the journal to the general ledger accounts. 3. Prepare an unadjusted trial balance on the worksheet provided 4. Using information below, the lecture notes and the unatusted trial balance, prepare and journal the adjusting journal entries in journal page 7 6. Supplies on hand on April 30, $900. Insurance expired during the month of April Expired rent for the month of Apri Depreciation on office equipment for April Unearned fees on April 30, $7,000. Enter the adjusting entries on the worksheet and complete all ten columns of the worksheet 6. Post the adjusting journal entries the general ledger accounts 7. Prepare an income statement, statement of owner's equity, and classified balance sheet 8. Prepare and journalize the closing entries on page 8 of the journal 9. Post the closing entries in the general ledger accounts 10. Prepare a post-closing trial balance as of April 30, 2021