ACG$2011$ Milestone Assignment #$1$ Instructions

Version $23.$A

Chart of Accounts

Step $1$: Journalize the following transactions.

Enter the following on page $1$ of the general journal.

June $1$ J $.$ Harris contributes cash of $$50,000$ and accounts receivable of $$20,000$ to a new partnership,

Top Tier Interior Design. S$.$ Grant contributes $$12,000$ cash and $$1,000$ of supplies to the

partnership. The partners agree that $$1,500$ is a reasonable amount for the allowance for

doubtful accounts for the contributed accounts receivable.

$1$ Paid rent for the June through August, $$3,000.$

$2$ Purchased equipment paying cash, $$5,000.$

$2$ Purchased a used van for $$30,000.$ The partnership paid $$10,000$ cash as a down payment

and signed a note for the remainder.

$6$ Received an advance payment of $$9,000$ for services to be provided in the future.

$10$ Purchased supplies on credit, $$700.$

$15$ Received cash for job completed, $$15,550.$

$20$ Recorded jobs completed on account and sent invoices to customers, $$12,200.$

$23$ Received an invoice in the mail for van$-$related expenses, to be paid in September $$1,200.$

$28$ Paid miscellaneous expenses, $$200.$

$28$ Paid utilities expense, $$300.$

Enter the following on page $2$ of the general journal.

$30$ Paid wages of employees, $$6,200.$

$30$ The partners agree to write off $$500$ of their accounts receivable as uncollectible.

$30$ Received cash from customers on account, $$7,000.$

$30$ Paid creditor a portion of the amount owed for supplies purchased earlier in the

month, $$250.$

$30$ J$.$ Harris withdrew cash for personal use, $$2,500.$

Step $2$: Post the journal entries in Step $1$ to a four$-$column general ledger.

Step $3$: Prepare an unadjusted trial balance for Top Tier Interior Design as of June $30,2020.$

Step $4$: Journalize the following adjusting entries for the end of the month.

a$.$ Supplies on hand on June $30$ are $$200.$

b$.$ The partnership uses the straight$-$line method to depreciate the equipment. The

estimated residual value is $$500,$ and the estimated useful life is $5$ years.

c$.$ The partnership uses the straight$-$line method to depreciate the van. The residual value

is estimated to be $$6,000,$ and the estimated useful life is $10$ years.

d$.$ Wages owed on June $30$ are $$500.$

e$.$ Rent expired during June is $$1,000.$

f$.$ Unearned revenue on June $30$ is $$2,500.$

g$.$ An analysis of accounts receivable at the end of the month indicates that the allowance

for doubtful accounts should be reported at $$1,550.$

h$.$ Recorded accrued interest of $$115.$

Step $5$: Post the adjusting entries in step $4$ to the general ledger.

Step $6$: Prepare an adjusted trial balance for Top Tier Interior Design as of June $30,2020.$

Step $7$: Prepare a Single$-$Step Income Statement, Statement of Partners' Equity, and Classified Balance

Sheet for Top Tier Interior Design as of June $30,2020.$ The partnership agreement states that net income

and net losses will be divided according to the following: each partner will receive $10\%$ interest on their original

contributions and any remainder will be divided equally. Treat all liabilities as current liabilities.

Step $8$: Journalize the closing entries for the month.

Step $9$: Post the closing entries in step $8$ to the four$-$column general ledger.

Step $10$: Prepare a post$-$closing trial balance for Top Tier Interior Design as of June $30,2020.$

GENERAL JOURNAL

ACG$2011$ Milestone Assignment #$2$ Instructions

Version $23.$A

Chart of Accounts

Step $1$: Journalize the following transactions for a new corporate retail company, Boats & More, Inc.,

for $205.$

Enter the following on page $1$ of the general journal.

$1/1$ Issued $40,000$ shares of $$4$ par value common stock for $$10$ per share.

$\frac{1}{1},$ Paid rent for the January through December, $$12,000.$

$\frac{2}{1}$ Purchased equipment on credit, $$2,600.$

$2/15$ Purchased inventory, paying $$220,500.$

$\frac{3}{1},$ Paid cash for furniture for the office, $$6,500.$

$4/20$ Paid cash for supplies, $$720.$