Accounting

A.4/1: Jim invested $100,000 in cash and $50,000 in equipment in the company.  B.4/2: The company prepaid for insurance with $1,200 cash.  C.4/3: The company paid cash for rent totaling $1,200.  D.4/5: The company completed services for a client for cash totaling $8,000.  E.4/10: The company provided a service for $15,000 on account.  F.4/11: The company purchased equipment for $5,000 and supplies for $3,000 on account.  G.4/15: The company paid $1,500 cash for employee salaries.  H.4/24: The company paid $300 cash for utility bills.  I.4/28: The company paid dividends totaling $2,000 cash.   Adjusting entries completed on April 30 J.Insurance expired for the month of April.  K.An ending count determined that supplies totaled $2,600.  L.Wages of $3,000 were earned but not paid.  M.Services of $5,000 were earned but not billed.  N.Depreciation on the equipment is $500 per month.   Using the above data, complete the following: •Journal entries  •Posting to T-accounts  •Trial balance  •Adjusting entries  •Adjusting trial balance  •Income statement  •Statement of retained earnings  •Balance sheet and closing entries

Project

Instructions

Comprehensive Problem
Complete the following:
• Journal entries
• Posting to T-accounts
• Trial balance
• Adjusting entries
• Adjusting trial balance
• Income statement
• Statement of retained earnings
• Balance sheet and closing entries
 

April Transactions

During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions:

Chart of Accounts

Chart of accounts description for posting to journal entries. Chart of Accounts
Account Type Account Number Account Title Assets 1

0

1 Cash 105 Accounts Receivable 107 Prepaid Insurance 109 Supplies 145 Equipment 146 Accum Dep – Equipment Liabilities 202 Accounts Payable 203 Income Tax Payable 204 Salary Payable Stockholders’ Equity 301 Common Stock 302

Retained Earnings

303 Dividends Revenue 401

Revenue
Expenses 501 Rent Expense 502 Utility Expense 503 Insurance Expense 504 Supplies Expense 505 Dep Expense – Equipment 506 Income Tax Expense 507 Salary Expense

Journal Entries

below.

General Journal

General Journal

Cash

Equipment

Prepaid Insurance

Cash 1,200
Rent Expense 1,200

Cash 1,200

Cash

Revenue 8,000

Accounts Receivable

Revenue 15,000

Equipment 5,000

Supplies

Accounts Payable 8,000

Salary Payable

Cash

Cash 300

Dividends

Cash 2,000

187,200

374,400

Prepare journal entries to record the April transactions in the Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper		General Journal
					Date						Description (Account Name)						Debit						Credit
1-Apr	100,000
50,000
Owner’s Equity	150,000
2-Apr								1,200
3-Apr
5-Apr			8,000
10-Apr		1			5,000
11-Apr
			3,000
15-Apr		1,			500
1,500
24-Apr	Utilites			300
28-Apr				2,000
	187,200
	374,		400

Journal Entries

General Ledger

Post the April journal entries to the following T-Accounts, and compute ending balances.

Cash DeVry: The balance of the Cash account after posting journal entries for Part A should be $10,718.

Trial Balance

Prepare a trial balance for April.

Adjusting Entries

Date Description (Account Name) Debit Credit

0 0

Journal Entries

Adjusting Entries

Adjusting Entries

Date Description (Account Name) Debit Credit

Insurance Expense 1,200
Prepaid Insurance 1,200
30-Apr Supplies 400
Supplies Expense 400
30-Apr Salary Expense 3,000
Salary Payable 3,000
30-Apr Accounts Receivable 5,000
Revenue 5,000
30-Apr

500

500

10,100

Prepare the following adjusting journal entries for April 30:
• Insurance expired for the month of April.
• An ending count of supplies totaled $2,600.
• Wages of $3,000 were earned but not paid.
• Services in the amount of $5,000 were earned but not billed.
• Depreciaiton on the equipment is $500 per month.
				30-Apr
Dep Expense-Equipment
Accum Dep-Equipment
	10,100

Journal Entries

Adjusted TB

Date Description (Account Name) Debit Credit

0 0

Prepare an Adjusted Trial Balance.

Adjusted Trial Balance

Journal Entries

Income Statement

Income Statement
23,000

Rent Expense 1,200
Insurance Expense 1,200

Salary Expense 1,500
Supplies Expense 3,000
Utility Expense 300

500

Prepare the Income Statement in the proper format for April 30.
Revenues:
Sales Revenue		23,000
Depreciation
Net Income

Retained Earnings

0

2,000

Retained Earnings 2,000

Prepare the Retained Earning statement in the proper format for April 30.

Statement of Retained Earnings

Retained Earnings,

Add: Net Income

Subtotal

Less: Dividends

Balance Sheet

Balance Sheet

0

0

0

0

Prepare the Balance Sheet in the proper format for April 30.

Assets:

Total Assets

Liabilities and Stockholders’ Equity

Liabilities:

Total Liabilities

Stockholders’ Equity:

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

Closing Entries

Date Description (Account Name) Debit Credit

0 0

Prepare the closing entries at April 30.

Post the closing entries to the T-Accounts on the General Ledger worksheet, and compute ending balances.

Journal Entries

Postclosing Trial Balance

Date Description (Account Name) Debit Credit

0 0

Prepare a postclosing trial balance as of April 30 in the space below.

Journal Entries

Jim opened Jim’s Auto Body. Complete the following transactions:

A. 4/1: Jim invested $100,000 in cash and $50,000 in equipment in the company.

B. 4/2: The company prepaid for insurance with $1,200 cash.

C. 4/3: The company paid cash for rent totaling $1,200.

D. 4/5: The company completed services for a client for cash totaling $8,000.

E. 4/10: The company provided a service for $15,000 on account.

F. 4/11: The company purchased equipment for $5,000 and supplies for $3,000 on account.

G. 4/15: The company paid $1,500 cash for employee salaries.

H. 4/24: The company paid $300 cash for utility bills.

I. 4/28: The company paid dividends totaling $2,000 cash.

Jim opened Jim’s Auto Body. Complete the following transactions:

A. 4/1: Jim invested $100,000 in cash and $50,000 in equipment in the company.

B. 4/2: The company prepaid for insurance with $1,200 cash.

C. 4/3: The company paid cash for rent totaling $1,200.

D. 4/5: The company completed services for a client for cash totaling $8,000.

E. 4/10: The company provided a service for $15,000 on account.

F. 4/11: The company purchased equipment for $5,000 and supplies for $3,000 on account.

G. 4/15: The company paid $1,500 ca sh for employee salaries.

H. 4/24: The company paid $300 cash for utility bills.

I. 4/28: The company paid dividends totaling $2,000 cash.