Accounting Cycle Review:

By Prof. Barker

Section I - 25 Points

Journalize the following:

1. Toni invested $85,000 to start NBC consulting services
2. Toni performed $6,400 of services on account.
3. Toni purchased equipment for $20,000 by paying $8,500 at the time and agreeing to pay the balance in 20 days.
4. Toni collected $4,200 on account for services performed last month.
5. Toni received but did not pay the monthly telephone bill, $315.
6. Toni received an advance payment of $6,500 for services to be performed next month.
7. Toni paid the balance due for the equipment purchased in transaction #3.
8. Toni withdrew $3,700 from the business for personal use.

Using the Journal page provided, prepare the journal entries for the above transactions.

Section II - 25 Points

Adjusting Entries:

1. Toni began the year with supplies of $4,500. During the year, he purchased additional supplies for $5,000. As of December 31^st, only $2,600 of supplies were on hand. What adjusting entry should Toni make on December 31?
2. Toni paid $60,000 cash of July 31, 2020 to rent office space for the next 5 years. Toni debited prepaid rent for the full amount. What adjusting entry should Toni make on December 31, 2020?
3. Toni purchased equipment for $50,000. Annual depreciation on the equipment is estimated to be $5,000. The adjusting entry to record depreciation at December 31would be.
4. Toni has a weekly payroll of $3750 which is paid on Fridays. Assuming a five-day work week and December 31 falls on a Thursday, what adjusting entry should Toni record?
5. Toni received cash of $18,000 on September 1, 2020 for one year's services in advance and record the transaction with a credit to unearned revenue. What adjusting entry should Toni make at December 31, 2020?
6. On January 31, 2020, Toni borrowed $145,000, 6.5% loan from JP Morgan Chase Bank. The loan matures in 5 years. Prepare the adjusting entry to accrue the interest on the loan as of December 31, 2020.

Using the Journal page provided, prepare the adjusting entries for the above transactions.

Section III - 25 Points

Closing Entries:

• Ticket Revenue 2,950
• Popcorn Revenue 175
• Rent Exp. 1,210
• Wages Exp. 1,000
• Supplies Exp. 150
• Telephone Exp. 165
• Toni's Capital 210
• Toni's Withdrawal 85

Using the Journal page provided below, prepare the closing entries.

Section I - Transaction journal entries
General Journal J1
Date	Account and Explanation	Post Ref.	Debit	Credit

Section II- Adjusting journal entries
General Journal J1
Date	Account and Explanation	Post Ref.	Debit	Credit

Section III- Closing entries
General Journal J1
Date	Account and Explanation	Post Ref.	Debit	Credit

Section IV - 25 Points

Toni Consulting Services Adjusted Trial Balance 12/31/2020
Cash	1,250
A/R	225
Prepaid Insurance	150
Equipment	2,000
Acc. Depreciation - Eqp		200
Accounts Payable		120
Unearned Revenue		530
Toni's Capital, 1/1/2020		500
Toni's Withdrawal	225
Service Revenue		2,950
Rent Revenue		150
Wages Exp.	290
Utility Exp.	110
Depreciation Exp.	200
Totals	$4,450	$4,450

Given the information above, Prepare Toni's Income Statement, Statement of Owner's Equity, and Balance Sheet.

Toni Consulting Services Income Statement For the period ending December 31, 2020
Revenues
1.	XXX
2.	XXX
Total Revenue		XXX
Operating Expenses:
1.	XXX
2.	XXX
3.	XXX
Total Operating Expenses		(XXX)
Net Income		XXXX

Toni Consulting Services Statement of Owner's Equity For the period ending December 31, 2020
Beginning Balance		XXX
Add:
Less:
Ending Capital Balance

Toni Consulting Services Balance Sheet As of December 31, 2020
Assets:
1.		XXX
2.		XXX
3.
4.
5.
Total Assets		XXXXX
Liabilities:
1.	XXX
2.	XXX
Total Liabilities		XXX
Owner's Equity:
1.	XXX
Total Liabilities & Owner's Equity	XXXXX