COMPREHENSIVE PROBLEM

Sam started Samuel Technology Service in February, 2015. The following transactions occurred in March, 2015:

Mar 1 Received cash from customers on account, $ 3,500.

2 Paid cash for advertising on a local website, $ 600.

3 Received cash from customers as an advance payment for

technical support services to be provided in the future, $ 5,000.

6 Paid technician $ 1,500 in salary, including the amount owed at

the end of February.

8 Paid $ 800 on account.

12 Billed customers for services provided on account, $ 12,200.

16 Received $ 7,750 cash for fees earned for jobs completed.

17 Paid technician $ 1,500 in salary.

18 Purchased supplies on account, $ 800.

20 Received $ 16,400 cash for fees earned for jobs completed.

21 Billed customers for services provided on account, $ 6,400.

23 Received cash from customers on account, $ 19,000.

26 Paid phone bill for the month, $ 240.

28 Paid electricity bill for the month, $ 580.

30 Billed customers for services provided on account, $ 7,800.

31 Received cash from customers on account, $ 10,200.

31 Sam withdrew $16,000 for personal use.

INSTRUCTIONS:

1. The chart of accounts and the post-closing trial balance as of

February 28, 2015 are given. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the ledger. Date the balances March 1, 2015, and place a check mark ( ) in the Posting Reference column.

2. Journalize each of the March transactions in the journal provided

using Samuel Technology Services chart of accounts. (Do not insert the account numbers in the journal at this time).

3. Post the journal to the ledger. (Enter posting references now).

4. Prepare an unadjusted trial balance.

5. At the end of March, the following adjustment data were

assembled. Use this data to complete instructions ( 5 ) and ( 6 ): a. Supplies on hand were $ 1,200. b. Rent expired during the month was $ 3,200. c. Unearned fees at the end of the month were $ 4,000. d. Insurance expired during the month was $ 600. e. Accrued salaries payable were $ 480. f. Depreciation on equipment during the month was $ 660.

6. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet/worksheet and complete the worksheet. (extra credit +5 points if completed & correct).

7. Journalize and post the adjusting entries.

8. Prepare an adjusted trial balance.

9. Prepare an Income Statement, Statement of Owners Equity, and

Balance Sheet.

10. Record and post the closing entries. Indicate closed accounts in

the ledger by inserting a line in both of the Balance columns opposite each closing entry.

10.Prepare a post-closing trial balance. SAMUEL TECHNOLOGY SERVICE CHART OF ACCOUNTS

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Ren

t 16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Salaries Payable

23 Unearned Fees

31 Sam OlinCapital

32 Sam Olin, Drawing

41 Fees Earned

51 Salaries Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

SAMUEL TECHNOLOGY SERVICE POST-CLOSING TRIAL BALANCE FEBRUARY 28, 2015

DEBIT CREDIT

Cash 44,200

Accounts Receivable 6,800

Supplies 2,700

Prepaid Rent 6,400

Prepaid Insurance 3,000

Office Equipment 29,000

Accumulated Depreciation 660

Accounts Payable 1,600

Salaries Payable 240

Unearned Fees 5,000

Sam Olin, Capital 84,600

Total 92,100 92,100