219 The Accounting Cycle Chapter 4 Obj. 4,5 PR 4-SA Complete accounting cycle For the past several years, Steffy Lopez has opera home. As of July 1, 20Y2, Steffy decided to move to rented quarters an ted a part-time consulting business from his basis. Diamond entered into the 533,475 which was to be known as Diamond Consulting, on a following transactions during July were received from Steffy Lopez in exchange for common stock cash, $13,500: accounts upplies $3,200 and office equipment, $7.500. There were no liabilities received 1. The following assets were receivable. $20,800 s 1. Paid 2. two months' rent on a lease rental contract, $4,800 Paid the premiums on property and casualty insurance policies $4,500 s an advance payment for services to be provided, and recorded it as unearned fees $5,500 5 Purchased additional office equipment on account from Office Station Co, $6,500 6. Received cash from clients on account, $15,300 10. Paid cash for a newspaper advertisement, $400 Paid Office Station Co. for part of the debt incurred on July 5, $5,200 12. Recorded services provided on account for the period July 1-12.513,300 4. Paid receptionist for two weeks' salary, $1,750 12. Record the following transactions on Page 2 of the journal 17. Recorded cash from cash clients for fees earned during the period July 1-17, 59.450. 18. Paid cash for supplies, 5600. 20. Recorded services provided on account for the period July 13-20, s6,650. Recorded cash from cash clients for fees earned for the period July 17-24, 24. 26. Received cash from clients on account, $12,000. 27. Paid receptionist for two weeks'salany,s1.750. 29. 31. Paid telephone bill for July, $325 Paid electricity bill for July. $675 Recorded cash from cash clilents for fees earned for the period July 25-31, $5,200 31. Recorded services provided on account for the remainder of July. $3,000. 31. Paid dividends, $12.500. 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 31 Common Stock 32 Retained Earnings 33 Dividends 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense 55 Insurance Expense 59 Miscellaneous Expense 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. pter 4 The Accounting Cycle 4 At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (a) Insurance expired during July is S375. b) Supplies on hand on July 31 are $1,525 (c) Depreciation of office equipment for July is $750 (d) Accrued receptionist salary on July 31 is $175 (e) Rent expired during July is $2,400 (f) Unearned fees on July 31 are $2,750 (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders' equity, and a baland 9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry 10. Prepare a post-closing trial balance