Acc Proj

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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
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.		 Dividends
100,000 1,200 2,000
8,000 1,500 2,000
300 2,000 2,000
2,000
1,200
101,800
108,000 108,000
Owner Equity Rent Expense
100,000 1,200
150,000 50,000 1,200
150,000 150,000 1,200 1,200
Equipment
50,000
5,000 55,000
55,000 55,000
Prepaid Insurance
1,200 1,200
1,200 1,200
Revenue
8,000
23,000 15,000
23,000 23,000
Accounts Receivable
15,000
15,000
15,000 15,000
Accounts Payable
5,000
3,000
8,000
8,000 8,000
Supplies
3,000
3,000
3,000 3,000
Salary Expense
1,500
1,500
1,500 1,500
Utility Expense
300
300
300 300

Trial Balance

Prepare a trial balance for April.
Adjusting Entries
Date Description (Account Name) Debit Credit
30-Apr Rent 1,200
30-Apr Dividends 2,000
30-Apr Utility Expense 300
30-Apr Salary Expense 1,500
30-Apr Supplies 3,000
30-Apr Accounts Payable 8,000
30-Apr Accounts Receivable 15,000
30-Apr Revenue 23,000
30-Apr Prepaid Insurance 1,200
30-Apr Equipment 55,000
30-Apr Owner Equity 150,000
30-Apr Cash 101,800
181,000 181,000

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
30-Apr Accumulated Dep-Equipment 500
30-Apr Depreciation Exp-Equipment 500
30-Apr Accounts Receivable 5,000
30-Apr Revenue 5,000
30-Apr Salary Expense 3,000
30-Apr Salary Payable 3,000
30-Apr Supplies Expense 400
30-Apr Supplies 400
30-Apr Prepaid Insurance 1,200
30-Apr Insurance Expense 1,200
10,100 10,100

Journal Entries

Income Statement

Prepare the Income Statement in the proper format for April 30.
Income Statement
Revenues:
Sales Revenue 28,000
28,000
Rent Expense 1,200
Insurance Expense 1,200
Salary Expense 4,500
Supplies Expense 2,600
Utility Expense 300
Depreciation 500
10,300
10,300
Net Income 17,700

Retained Earnings

Prepare the Retained Earning statement in the proper format for April 30.
Statement of Retained Earnings
Retained Earnings,
Add: Net Income 17,700
Subtotal 17,700
Less: Dividends 2,000
Retained Earnings 15,700

Balance Sheet

Prepare the Balance Sheet in the proper format for April 30.
Balance Sheet
Assets:
Cash 101,800
Equipment 55,000
Prepaid Insurance 1,100
Accounts Receivable 20,000
Supplies 2,600
Less: Accumulated Depreciation (500)
Total Assests 180,000
Liabilities and Stockholders' Equity
Liabilities:
Accounts Payable 8,000
Salary Payable 3,000
Total Liabilities 11,000
Stockholders' Equity:
Owner Equity 150,000
Retained Earnings 19,000
Total Stockholders' Equity 169,000
Total Liabilities and Stockholders' Equity 180,000

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
30-Apr Cash A/C
Equity 100,000
Revenue 8,000
Prepaid Insurance 1,200
Salary Expenses 1,500
Utility 300
Dividends 2,000
Rent 1,200
Balance c/f 101,800
30-Apr Equity A/C
Equipment 50,000
Cash 100,000
Balance c/f 150,000
30-Apr Equipment A/C
Equity 50,000
Account Payable 5,000
Balance c/f 55,000
30-Apr Prepaid Insurance A/C
Cash 1,200
Insurance Expense 1,200
Balance c/f - 0
30-Apr Revenue A/C
Cash 8,000
Account Receivable 15,000
Balance c/f 23,000
30-Apr Account Receivable A/C
Revenue 15,000
Balance c/f 15,000
30-Apr Account Payable A/C
Equipment 5,000
Supplies 3,000
Balance c/f 8,000
30-Apr Supplies A/C
Account Payable 3,000
Supplies Expense 2,600
Balance c/f 400
30-Apr Salary Expenses A/C
Cash 1,500
Balance c/f 1,500
30-Apr Utility Expenses A/C
Cash 300
Balance c/f 300
30-Apr Dividends A/C
Cash 2,000
Balance c/f 2,000
30-Apr Rent A/C
Cash 1,200
Balance c/f 1,200
30-Apr Insurance Expense A/C
Prepaid Insurance 1,200
Balance c/f 1,200
369,400 369,400

Journal Entries

Postclosing Trial Balance

Prepare a postclosing trial balance as of April 30 in the space below.
Date Description (Account Name) Debit Credit
30-Apr Rent 1,200
30-Apr Dividends 2,000
30-Apr Utility Expense 300
30-Apr Salary Expense 4,500
30-Apr Supplies 2,600
30-Apr Accounts Payable 8,000
30-Apr Accounts Receivable 20,000
30-Apr Revenue 28,000
30-Apr Prepaid Insurance - 0
30-Apr Equipment 54,500
30-Apr Owner Equity 150,000
30-Apr Cash 101,800
30-Apr Salary Payable 3,000
30-Apr Depreciation Expense 500
30-Apr Supplies Expense 2,600
30-Apr Insurance Expense 1,200
191,200 189,000

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.