ACC $120$ FINANCIAL ACCOUNTING

COMPREHENSIVE PROBLEM #$1$

ZEE SPORTS

Zeke Michaels began Zee Sports on November $1,20$XX$.$ In Chapters $24$ Problems were completed for Zee Sports for the months of November and December $20$XX$.$ During January $20$XX Zee Sports entered into the following transactions:

Recorded the following transactions on page $6$ of the General Journal

Jan. $3.$ Received cash from customers as an advance payment for services to be provided and recorded as unearned fees, $$2,000.$

$5.$ Received cash from customers on account, $$2,500$

$9.$ Paid cash for a newspaper advertisement, $$300$

$13.$ Paid on account for previous purchase, $$400$

$15.$ Recorded services provided on account for period Jan. $1-15,$ $$9,250$

$16.$ Paid wages to employees for two weeks worked, which includes amount owed from Dec. $31,$ Total paid out $$1,275$

Recorded the following transactions on page $7$ of the General Journal

$17.$ Recorded cash from cash customers for fees earned during period Jan $1-16,$ $$6,750$

$20.$ Purchased supplies on account, $$600$

$21.$ Recorded services provided on account for period Jan $16-20,$ $$6,175$

$25.$ Recorded cash from cash customers for fees earned during period Jan $17-23,$ $$3,925$

$27.$ Received cash from clients on account, $$11,250$

$28.$ Paid wages to employees for two weeks worked, $$1,275.$

$30.$ Paid telephone bill for January, $$220$

$30.$ Paid electric bill for January, $$390$

$31.$ Recorded cash from cash customers for fees earned during period Jan $26-31,$ $$3,300$

$31.$ Recorded services provided on account for period Jan $21-31,$ $$1,900$

$31.$ Owner withdrawal, $$5,000$

INSTRUCTIONS:

For each account in the Post$-$Closing Trial Balance completed in Chapter $4$ Problem $2,$ enter the balance in the appropriate BALANCE column of a four$-$column account. Date the balances Jan. $1,20$XX$,$ and place a check mark $()$ in the Post Reference column. Journalize each of the January transactions in a two$-$column journal starting on page $6$ of the journal using the accounts provided in the General Ledger.

Post the journal to the General Ledger.

Prepare an Unadjusted Trial Balance

At the end of January, the following adjustment data was assembled. Analyze and use this data to complete part $5.$

Insurance expired during January, $$200$

Supplies on hand on Jan. $31,$ $$750$

Depreciation of office equipment is $$100$

Accrued employee wages on Jan. $31,$ $$750$

Rent revenue earned for Jan., $$120$

Journalize and post the adjusting entries. Record the adjusting entries on Page $8$ of the journal.

Prepare an adjusted trial balance

Prepare an Income statement, statement of owner$$s equity, and a balance sheet.

Prepare and post the closing entries on Page $9$ of the journal. Indicate closed accounts by inserting a line $(---)$ in both Balance columns opposite the closing entry.

Prepare a post$-$closing trial balance.