MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. There are 10 sheets in the Workbook,
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Question:
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW. | ||||||||
There are 10 sheets in the Workbook, including this one. | ||||||||
All of the information that you need for the project is located in this Workbook. | ||||||||
Requirements | Sheet in Workbook | |||||||
Requirement 1—Prepare the Journal Entries in the General Journal | Journal Entries | |||||||
Requirement 2—Post Journal Entries to the General Ledger | General Ledger | |||||||
Requirement 3—Prepare a Trial Balance | Trial Balance | |||||||
Requirement 4—Prepare the Adjusting Entries | Adjusting Entries | |||||||
Requirement 5—Post Adjusting Entries to the General Ledger | General Ledger | |||||||
Requirement 6—Prepare an Adjusted Trial Balance | Adjusted Trial Balance | |||||||
Requirement 7—Prepare the Financial Statements | Financial Statements | |||||||
Requirement 8—Prepare the Closing Entries | Closing Entries | |||||||
Requirement 9—Post Closing Entries to the General Ledger | General Ledger | |||||||
Requirement 10—Prepare the Post Closing Trial Balance | Post-Closing Trial Balance | |||||||
Hint for success: Review the Week 2 Lesson prior to starting this project. | ||||||||
There are also hints contained within certain cells on some of the Worksheet tabs. | ||||||||
You can hover over the red pointer at the top right-hand corner of the cell to read the hint. | ||||||||
Hints are provided for the following balances: | ||||||||
1) The debits for the journal entries are on the Journal Entries tab. | ||||||||
2) The credits for the journal entries are on the Journal Entries tab. | ||||||||
3) The cash balance is on the General Ledger tab. | ||||||||
4) The debits for the trial balance are on the Trial Balance tab. | ||||||||
5) The credits for the trial balance are on the Trial Balance tab. | ||||||||
6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab. | ||||||||
7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab. | ||||||||
8) Net income for the income statement is on the Financial Statements tab. | ||||||||
9) Retained earnings as of July 31 are on the Financial Statements tab. | ||||||||
10) Total assets for the balance sheet are on the Financial Statements tab. | ||||||||
11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab. | ||||||||
12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab. | ||||||||
13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab. | ||||||||
Requirement #1: | |||||||||||||||
During its first month of operation, the Melvin Plumbing Corporation, which specializes in residential plumbing, | |||||||||||||||
completed the following transactions. | |||||||||||||||
July 1 | Began business by making a deposit in a company bank account of $90,000, in exchange | ||||||||||||||
for 9,000 shares of $10 par value common stock. | |||||||||||||||
July 3 | Paid the current month's rent, $5,500. | ||||||||||||||
July 5 | Paid the premium on a 1-year insurance policy, $4,800 | ||||||||||||||
July 7 | Purchased supplies on account from Little Company, $900. | ||||||||||||||
July 10 | Paid employee salaries, $3,300 | ||||||||||||||
July 14 | Purchased equipment from Lake Company, $11,500. Paid $1,500 down and the balance was | ||||||||||||||
placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1. | |||||||||||||||
Note: Use accounts payable for the balance due. | |||||||||||||||
July 15 | Received cash for plumbing revenue for the first half of July, $7,700 | ||||||||||||||
July 19 | Made payment on account to Lake Company, $500. | ||||||||||||||
July 31 | Received cash for plumbing revenue for the last half of July, $8,505 | ||||||||||||||
July 31 | Declared and paid cash dividends of $600 | ||||||||||||||
Prepare journal entries to record the July transactions in the General Journal below. | Use the following account names for journal entries. | ||||||||||||||
General Journal | Chart of Accounts: Account Title (Normal Balance) | ||||||||||||||
Date | Description(Account Name) | Debit | Credit | ||||||||||||
Assets | |||||||||||||||
Cash (Debit) | |||||||||||||||
Prepaid Insurance (Debit) | |||||||||||||||
Supplies (Debit) | |||||||||||||||
Equipment (Debit) | |||||||||||||||
Accumulated Depreciation - Equipment (Credit) | |||||||||||||||
Liabilities | |||||||||||||||
Accounts Payable (Credit) | |||||||||||||||
Income Tax Payable (Credit) | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Common Stock (Credit) | |||||||||||||||
Retained Earnings (Credit) | |||||||||||||||
Dividends (Debit) | |||||||||||||||
Revenue | |||||||||||||||
Revenue (Credit) | |||||||||||||||
Expenses | |||||||||||||||
Rent Expense (Debit) | |||||||||||||||
Salaries Expense (Debit) | |||||||||||||||
Insurance Expense (Debit) | |||||||||||||||
Supplies Expense (Debit) | |||||||||||||||
Depreciation Expense (Debit) | |||||||||||||||
Income Tax Expense (Debit) | |||||||||||||||
0 | 0 | ||||||||||||||
Note: Remember that debits must equal credits—All of your journal entries should balance. |
This Sheet will be used for Requirements 2, 5, and 9. | |||||
Requirement #2: | |||||
Post the July journal entries to the following T-accounts and compute ending balances. | |||||
Cash (111) | Revenue (411) | ||||
Prepaid Insurance (117) | Rent Expense (511) | ||||
Supplies (119) | Salaries Expense (512) | ||||
Equipment (144) | Insurance Expense (513) | ||||
Accumulated Depreciation-Equipment (145) | Supplies Expense (514) | ||||
Accounts Payable (212) | Depreciation Expense (515) | ||||
Income Tax Payable (213) | Income Tax Expense (516) | ||||
Common Stock (311) | |||||
Retained Earnings (312) | |||||
Dividends (313 | |||||
Requirement #3: | |||
Prepare a trial balance for July in the space below. | |||
Melvin Plumbing Corporation | |||
Trial Balance | |||
July 31 | |||
0 | 0 | ||
Requirement #4: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepare adjusting entries using the following information in the General Journal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
below. Show your calculations! | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a) One month's insurance has expired. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b) The remaining inventory of supplies is $375. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c) The estimated depreciation on equipment is $175. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
d) The estimated income taxes are $3,200. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Journal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Date | Description (Account Name) | Debit | Credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Requirement #5: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Just add to the balances that are already listed. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Requirement #7: | ||||||||||
Prepare the financial statements for the Melvin Plumbing Corporation as of July 31 in the space below. | ||||||||||
You will only be preparing the income statement, statement of retained earnings, and the balance sheet. | ||||||||||
The statement of cash flows is a required financial statement, but is not required for this case study. | ||||||||||
Melvin Plumbing Corporation | Melvin Plumbing Corporation | Melvin Plumbing Corporation | ||||||||
Income Statement | Statement of Retained Earnings | Balance Sheet | ||||||||
For the Month Ending July 31 | For the Month Ending July 31 | July 31 | ||||||||
Revenues: | Retained Earnings, July 1 | Assets: | ||||||||
Revenue | Add: Net Income | Cash | ||||||||
Subtotal | Supplies | |||||||||
Expenses: | Less: Dividends | Prepaid Insurance | ||||||||
Rent Expense | Retained Earnings, July 31 | Equipment | ||||||||
Salaries Expense | Less: Accum. Depr. | |||||||||
Insurance Expense | Total Assets | |||||||||
Supplies Expense | ||||||||||
Depreciation Expense | Liabilities: | |||||||||
Income Tax Expense | Accounts Payable | |||||||||
Total Expenses | Income Tax Payable | |||||||||
Total Liabilities | ||||||||||
Net Income | Stockholders' Equity: | |||||||||
Common Stock | ||||||||||
Retained Earnings | ||||||||||
Total Stockholders' Equity | ||||||||||
Total Liabilities and | ||||||||||
Stockholders' Equity | ||||||||||
Requirement #8: | |||||||
Prepare the closing entries at July 31 in the General Journal below. | |||||||
General Journal | |||||||
Date | Description (Account Name) | Debit | Credit | ||||
Requirement #9: | |||||||
Post the closing entries to the General Ledger T-accounts and compute ending balances. | |||||||
Just add to the adjusted balances already listed. |
Requirement #10: | |||
Prepare a post-closing trial balance as of July 31 in the space below. | |||
Melvin Plumbing Corporation | |||
Post-Closing Trial Balance | |||
July 31 | |||
0 | 0 |
Related Book For
Applied Statistics From Bivariate Through Multivariate Techniques
ISBN: 978-1412991346
2nd edition
Authors: Rebecca M. Warner
Posted Date: