Accounting
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ACCT1100IndividualAssignmentFall2020Student1.pdf
Part XXX Accounting Cycle
$7,600 $14,300 $5,800 $7,400
$996 $28,000
$52,400 $49,700 Stone, Capital $17,096
$66,796 $66,796
NOTE: The bank loan has monthly payments of $1,000.
Account # Account #
101 400 105 110 500 120 510 125 515
520 200 545 205 550 210
215
220
300 310 315
For the month of July 2020, Grindstone Paving had the following transactions:
Jul 1 $9,200 Jul 2 $2,200 Jul 5 $710 Jul 8 $110
Jul 10 $8,800 Jul 14 $7,600 Jul 20 $2,290 Jul 22 $1,710 Jul 24 $1,000 Jul 28 $2,500 Jul 30 $2,100
Grindstone Paving Balance Sheet
As at June 30, 2020 Assets Liabilities Cash Accounts Payable
Purchased equipment with $7,600 cash. Received $2,290 in payment from customers paying their accounts. Paid $1,710 towards accounts payable.
Advertising Expense Equipment Accumulated Depreciation
Depreciation Expense
Cash Service Revenue Accounts Receivable Prepaid Insurance
EXPENSES
Rocky Stone, Capital
Telephone Expense
Grindstone Paving provides residential and commercial paving services. Their balance sheet at the end of June
2020 is shown below, along with their chart of accounts.
At the end of July, the following adjustment had to be journalized to properly report the balances of the
company’s accounts:
Less: Accum. Depreciation 5,200 Total Liabilities
Total Assets Total Liabilities & Owners' Equity
The owner invested $9,200 cash into the business. Received $2,200 cash for work that will be provided in August.
Accounts Receivable Unearned Revenue Prepaid Insurance Bank Loan Equipment $57,600
Paid $1,000 toward principal of the bank loan.
The owner withdrew $2,100 cash for personal use.
Account Description Account Description ASSETS REVENUE
Paid $2,500 cash for an employee's salary (all of this salary was earned in July).
Received an advertising bill for $710 which will be paid next month. Paid the July telephone bill for $110 cash. Provided $8,800 worth of services to customers who will pay later.
LIABILITIES Insurance Expense
Accounts Payable Interest Expense
Interest Payable Salary Payable
Salaries Expense
Unearned Revenue
Bank Loan OWNER'S EQUITY
Rocky Stone, Withdrawals Income Summary
Jul 31 $83 Jul 31 #VALUE! Jul 31 $480 Jul 31 $110 Jul 31 $440
Required:
a) Enter the opening balances from the June 2020 balance sheet into the general ledger accounts. b) Prepare the journal entries for the month of July and post them to the appropriate general ledger accounts.
c) Create the trial balance in the worksheet, enter the adjustments, and then complete the remaining section of the worksheet. d) Create the income statement, statement of owner’s equity and the classified balance sheet. e) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.
f) Prepare the journal entries to close the books for the month of July 2020 (use the income summary account), and post the journal entries to the appropriate general ledger accounts. g) Create the post-closing trial balance.
One month of prepaid insurance worth $83 has been used. Monthly depreciation on the equipment was $800 Unearned revenue worth $480 has now been earned. Interest of $110 has accrued on the bank loan. Accrued salary expense of $440 for an employee.
Date PR DR CRAccount Title and Explanation
Account: Cash GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Accounts Receivable GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Prepaid Insurance GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Equipment GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Accumulated Depreciation GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Description
Description
Description
Description
Description
Account: Accounts Payable GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Interest Payable GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Salary Payable GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Unearned Revenue GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Bank Loan GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Account: Rocky Stone, Capital GL No:
Date PR DR CR Balance DR/CR
Opening Balance
Description
Description
Description
Description
Description
Description
Account: Rocky Stone, Withdrawals GL No:
Date PR DR CR Balance DR/CR
Account: Income Summary GL No:
Date PR DR CR Balance DR/CR
Account: Service Revenue GL No:
Date PR DR CR Balance DR/CR
Account: Advertising Expense GL No:
Date PR DR CR Balance DR/CR
Account: Depreciation Expense GL No:
Date PR DR CR Balance DR/CR
Account: Insurance Expense GL No:
Date PR DR CR Balance DR/CR
Description
Description
Description
Description
Description
Description
Account: Interest Expense GL No:
Date PR DR CR Balance DR/CR
Account: Salaries Expense GL No:
Date PR DR CR Balance DR/CR
Account: Telephone Expense GL No:
Date PR DR CR Balance DR/CRDescription
Description
Description
DR CR DR CR DR CRAccount Titles
Grindstone Paving
Worksheet
July 31, 2020
Unadjusted Trial
Balance Adjustments Adjusted Trial Balance
Date PR DR CRAccount Title and Explanation
Grindstone Paving
Income Statement
For the Month Ended July 31, 2020
Grindstone Paving
Statement of Owner's Equity
For the Month Ended July 31, 2020
Grindstone Paving
Balance Sheet
As at July 31, 2020
Date PR DR CRAccount Title and Explanation
DR CR
Grindstone Paving
Post-Closing Trial Balance
July 31, 2020
Account Titles
