Comprehensive Problem Acct 1A Transmittal Sheet Student Name: ID Important: Complete all requirements and scan into one continuous document before submitting. Upload your completed project in the following order in the Assignment area provided 1. Transmittal Sheet 2 Income Statement 3. Statement of Owner's Equity 4 Balance Sheet 5. Statement of Cash Flow 6. Post Closing Trial Balance 7. End of Period Worksheet 8. General Joumal 9. General Ledger Grading Rubric (50 points total) 1. First Impressions 10 points Followed instructions, presented papers in order in pdf format, pleasing to the eye. 2. Financial Statements 20 points The ultimate goal of the accounting cycle is to prepare the financial statements for third party evaluation. Creditors, government agencies, and investors (to name a few) depend on the information provided in order to make decisions about your business entity. Points will be allocated based on first impression, format and accuracy 3. Working Papers 20 points The journals, end of period worksheet, and general ledger will be evaluated based on first impressions, accuracy, format, attention to detail, proper format and proper posting (x-referencing.) Project 1 - The Accounting Cycle - Acet 1A -Summer 2020 Kelly Reilly owns a decorating service call K & R Decorating and provides its services for a fee. Kelly has hired you to prepare the books and financial statements She provided the following information: 1. The following is the December 31, 20x0 post closing trial balance: ACCOUNT DEBIT CREDIT $200,000 20,000 100,000 Cash Supplies Equipment Accumulated Depreciation Miscellaneous Payables Salaries Payable Long Term Note Payable K. Reilly, Capital $ 10,000 40,000 4,000 50,000 216,000 $320,000 $320,000 ODDE The following transaction occurred during January, 20x1: 1. Purchased additional supplies for $12,000 on account (record the liability as a Miscellaneous Liability.) 2. Paid salaries owed to employees at December 31 20x0. 3. Provided decorating services for $84,000 cash. 4. Paid entire balance in Accounts Payables (including purchase in 1 above). 5. Purchased $15,000 worth of supplies on account (use Miscellaneous Payables.) 6. Paid six months' worth of rent on buildings for $6,000, starting in January, 7. Made a payment on the long-term loan of $5,000. Of this amount $4,950 was principal and $50 was interest for January. Additional information: 1. There was $5,000 worth of supplies left on hand at the end of the month. 2. The equipment is being depreciated at $833 per month. 3. At month end, the following expenses for January (to be paid in February) has not been recorded: Utilities $350 and Salaries $4,600. Project 1 - The Accounting Cycle - Acct 1A -Summer 2020 Required: 1. Set up ledger (T accounts) and post the beginning balances. 2. Prepare journal entries for each of the transactions and post them to the ledgers. 3. Prepare unadjusted trial balance on the end of period (EOP) worksheet. 4. Journalize the adjusting entries needed for depreciation, supplies, rent and accrued liabilities; place adjustments on the EOP worksheet. 5. Prepare an adjusted trial balance on the EOP worksheet. 6. Extend the adjusted trial balance to prepare the Income Statement and Balance Sheet on the EOP worksheet. 7. Prepare the four basic financial statements for the month of January: Income Statement, Statement of Owner's Equity, Balance Sheet & Statement of Cash Flows. 8. Prepare the closing entries and post to ledger. 9. Prepare post closing trial balance