Accounting
tj8ph08
IP1AccCap.xlsxProject 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 | |||
| 101 | 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
| Prepare journal entries to record the April transactions in the General Journal below. | |||
| General Journal | |||
| General Journal | |||
| Date | Description (Account Name) | Debit | Credit |
| 1-Apr | Cash | 100,000 | |
| Equipment | 50,000 | ||
| Owner's Equity | 150,000 | ||
| 2-Apr | Prepaid Insurance | 1,200 | |
| Cash | 1,200 | ||
| 3-Apr | Rent Expense | 1,200 | |
| Cash | 1,200 | ||
| 5-Apr | Cash | 8,000 | |
| Revenue | 8,000 | ||
| 10-Apr | Accounts Receivable | 15,000 | |
| Revenue | 15,000 | ||
| 11-Apr | Equipment | 5,000 | |
| Supplies | 3,000 | ||
| Accounts Payable | 8,000 | ||
| 15-Apr | Salary Payable | 1,500 | |
| Cash | 1,500 | ||
| 24-Apr | Utilites | 300 | |
| Cash | 300 | ||
| 28-Apr | Dividends | 2,000 | |
| Cash | 2,000 | ||
| 187,200 | 187,200 | ||
| 374,400 | 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
| 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. | |||
| Adjusting Entries | |||
| Date | Description (Account Name) | Debit | Credit |
| 30-Apr | 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 | Dep Expense-Equipment | 500 | |
| Accum Dep-Equipment | 500 | ||
| 10,100 | 10,100 | ||
Journal Entries
Adjusted TB
| Prepare an Adjusted Trial Balance. | |||
| Adjusted Trial Balance | |||
| Date | Description (Account Name) | Debit | Credit |
| 0 | 0 | ||
Journal Entries
Income Statement
| Prepare the Income Statement in the proper format for April 30. | |||||
| Income Statement | |||||
| Revenues: | |||||
| Sales Revenue | 23,000 | ||||
| 23,000 | |||||
| Rent Expense | 1,200 | ||||
| Insurance Expense | 1,200 | ||||
| Salary Expense | 1,500 | ||||
| Supplies Expense | 3,000 | ||||
| Utility Expense | 300 | ||||
| Depreciation | 500 | ||||
| Net Income | |||||
Retained Earnings
| Prepare the Retained Earning statement in the proper format for April 30. | ||
| Statement of Retained Earnings | ||
| Retained Earnings, | ||
| Add: Net Income | ||
| Subtotal | 0 | |
| Less: Dividends | 2,000 | |
| Retained Earnings | 2,000 | |
Balance Sheet
| Prepare the Balance Sheet in the proper format for April 30. | ||
| Balance Sheet | ||
| Assets: | ||
| Total Assets | 0 | |
| Liabilities and Stockholders' Equity | ||
| Liabilities: | ||
| Total Liabilities | 0 | |
| Stockholders' Equity: | ||
| Total Stockholders' Equity | 0 | |
| Total Liabilities and Stockholders' Equity | 0 | |
Closing Entries
| Prepare the closing entries at April 30. | |||
| Post the closing entries to the T-Accounts on the General Ledger worksheet, and compute ending balances. | |||
| Date | Description (Account Name) | Debit | Credit |
| 0 | 0 | ||
Journal Entries
Postclosing Trial Balance
| Prepare a postclosing trial balance as of April 30 in the space below. | |||
| Date | Description (Account Name) | Debit | Credit |
| 0 | 0 | ||
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.
