For the past several years, Aaron Jones has operated a consulting business from his home on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For the past several years, Aaron Jones has operated a consulting business from his home on a part- time basis. As of December 1, 20X1, Aaron decided to move to rented quarters and incorporate his business as Progress Consulting Inc. Progress Consulting was authorized to issue 100,000 shares of $1 par value common stock. Progress Consulting entered into the following transactions during December: 1st 2nd 3rd 4th 5th 10th 11th 12th 17th 18th 20th 24th 25th 30th 31st Aaron Jones invested the following assets in the business: cash, $6,500; supplies, $1,250; and office equipment, $27,900. Mr. Jones received common stock in an amount equal to his investment. Paid $4,500 for rent for December 20X1 through February 28, 20X2. Paid $1,800 for a one-year premium on property and casualty insurance. The policy covers the period December 1, 20X1, to November 30, 20X2 Received $3,500 cash from a client as an advance payment for services to be performed in the future. Purchased additional office equipment on account from Payne Company for $1,800. Paid $2,300 for a newspaper advertisement. Paid Payne Company for part of the debt incurred on December 5, $900. Billed clients for services performed on account, $1,200. Received cash payment from client for services performed on this date, $8, 1 2 3.* Paid $1,123 for supplies.* Billed clients for services performed on account, $1,100. Received cash payment from client for services performed on this date, $1,850. Received cash from clients as payment on account, $1,300. Paid $330 for utilities for December. Paid cash dividend of $2,1 2 3.* REQUIREMENTS: 1. Make copies of the required forms (see attached forms and instructions). Then, using the chart of accounts shown below, set up the general ledger. NOTE: YOU MUST USE THE DOWNLOADED FORMS TO RECEIVE CREDIT FOR THE PROBLEM. PROGRESS CONSULTING Chart of Accounts 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 17 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Wages Payable 23 Unearned Revenue 31 Common Stock 34 Retained Earnings 35 Dividends 41 Service Revenue 51 Insurance Expense 52 Advertising Expense 53 Rent Expense 55 Supplies Expense 57 Depreciation Expense 59 Utilities Expense 60 Wage Expense Set up the entire general ledger using these accounts before you start into the project. Keep the accounts in numeric order. 2. Journalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED. 3. Post the entries to the ledger. 4. Prepare a trial balance as of December 31, 20X1. 5. Journalize and post the adjusting entries using the following information: a. Insurance expired during December is $150. b. Supplies on hand on December 31 are valued at $1,320. c. Depreciation of office equipment for December is $248. d. Rent expired during December is $1,500. e. Determined that company had performed $2,500 of the services for which it was paid on December 4th. f. Employees were owed $1,000 for the month of December. They were paid on January 2nd g. Services were performed for a client on December 31 in the amount of $750. The client did not pay nor has the client been billed. 6. Prepare an adjusted trial balance. 7. Using the adjusted trial balance, prepare an income statement, a statement of retained earnings, and a balance sheet. 8. Journalize and post the closing entries. 9. Prepare a post-closing trial balance. 10. After you have completed the problem, arrange the pages of your solution in the following order: a. Journals b. Ledger c. Trial Balance d. Adjusted Trial Balance e. f. Income Statement Post-closing Trial Balance g. Balance Sheet h. Statement of Retained Earnings For the past several years, Aaron Jones has operated a consulting business from his home on a part- time basis. As of December 1, 20X1, Aaron decided to move to rented quarters and incorporate his business as Progress Consulting Inc. Progress Consulting was authorized to issue 100,000 shares of $1 par value common stock. Progress Consulting entered into the following transactions during December: 1st 2nd 3rd 4th 5th 10th 11th 12th 17th 18th 20th 24th 25th 30th 31st Aaron Jones invested the following assets in the business: cash, $6,500; supplies, $1,250; and office equipment, $27,900. Mr. Jones received common stock in an amount equal to his investment. Paid $4,500 for rent for December 20X1 through February 28, 20X2. Paid $1,800 for a one-year premium on property and casualty insurance. The policy covers the period December 1, 20X1, to November 30, 20X2 Received $3,500 cash from a client as an advance payment for services to be performed in the future. Purchased additional office equipment on account from Payne Company for $1,800. Paid $2,300 for a newspaper advertisement. Paid Payne Company for part of the debt incurred on December 5, $900. Billed clients for services performed on account, $1,200. Received cash payment from client for services performed on this date, $8, 1 2 3.* Paid $1,123 for supplies.* Billed clients for services performed on account, $1,100. Received cash payment from client for services performed on this date, $1,850. Received cash from clients as payment on account, $1,300. Paid $330 for utilities for December. Paid cash dividend of $2,1 2 3.* REQUIREMENTS: 1. Make copies of the required forms (see attached forms and instructions). Then, using the chart of accounts shown below, set up the general ledger. NOTE: YOU MUST USE THE DOWNLOADED FORMS TO RECEIVE CREDIT FOR THE PROBLEM. PROGRESS CONSULTING Chart of Accounts 11 Cash 12 Accounts Receivable 14 Supplies 15 Prepaid Rent 17 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation 21 Accounts Payable 22 Wages Payable 23 Unearned Revenue 31 Common Stock 34 Retained Earnings 35 Dividends 41 Service Revenue 51 Insurance Expense 52 Advertising Expense 53 Rent Expense 55 Supplies Expense 57 Depreciation Expense 59 Utilities Expense 60 Wage Expense Set up the entire general ledger using these accounts before you start into the project. Keep the accounts in numeric order. 2. Journalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED. 3. Post the entries to the ledger. 4. Prepare a trial balance as of December 31, 20X1. 5. Journalize and post the adjusting entries using the following information: a. Insurance expired during December is $150. b. Supplies on hand on December 31 are valued at $1,320. c. Depreciation of office equipment for December is $248. d. Rent expired during December is $1,500. e. Determined that company had performed $2,500 of the services for which it was paid on December 4th. f. Employees were owed $1,000 for the month of December. They were paid on January 2nd g. Services were performed for a client on December 31 in the amount of $750. The client did not pay nor has the client been billed. 6. Prepare an adjusted trial balance. 7. Using the adjusted trial balance, prepare an income statement, a statement of retained earnings, and a balance sheet. 8. Journalize and post the closing entries. 9. Prepare a post-closing trial balance. 10. After you have completed the problem, arrange the pages of your solution in the following order: a. Journals b. Ledger c. Trial Balance d. Adjusted Trial Balance e. f. Income Statement Post-closing Trial Balance g. Balance Sheet h. Statement of Retained Earnings
Expert Answer:
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
For the past several years, Emily Page has operated a part-time consulting business from her home. As of December 1, 2015, Emily decided to move to rented quarters and to operate the business, to be...
-
For the past several years, Shane Banovich has operated a part-time consulting business from his home. As of October 1, 2012, Shene decided to move to rented quarters and to operate the business as...
-
The company entered into the following transactions during the year: Purchase of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400 Sale of investment securities . ....
-
Which of the following is most likely to be recognized as a defining characteristic of the public good? a) The good is a non-rival element. B) the good is a non-excludable item C) The good is both A...
-
Explain the relationship between MRP II and ERP.
-
The adjusted trial balance for Edgemont Entertainment Solutions is as follows: Instructions a. Prepare an income statement, statement of owner?s equity, and a classified balance sheet. M. Edgemont...
-
How can supervisors validate the field work of interviewers?
-
Consider Wal-Mart, a large retailer. Classify the following items as an Asset (A), a Liability (L), or Stockholders Equity (S) for Wal-Mart: a . _____ Accounts payable b. _____ Common stock c. _____...
-
Compare and contrast expert lending systems with statistical credit scoring models. Discuss the strengths and weaknesses of each. Please explain the components of each system in your answer.
-
The Wilson Company's marketing manager has determined that the price elasticity of demand for its product equals - 2.2. According to studies she carried out, the relationship between the amount spent...
-
Determine the forces in members AB , AC , and AD . Point M is the centroid of triangle BCD . The forces are positive if in tension, negative if in compression. B 5.2' M 5.2' 1190 lb x D 5.2 6.6'
-
What is the difference between: (a) a membership group and a reference group; and (b) a normative reference group and a comparative reference group?
-
Comment on the nature of toxic cultures in organizations.
-
How does one improve the performance of teams who have a lot of experience of working together?
-
Examine the frameworks for analysing organizational culture, and state which one you personally feel is the more credible.
-
What is the difference between an internally imposed norm and an externally imposed norm?
-
With the above data, a. what are the upper and lower control limits for C chart? Draw the graph of C chart with sample average data. c. Is the process under control? Please explain it? b.
-
Why should you not model a decision variable as a random variable with a probability distribution?
-
The management of Gourmet Appliance Company in Exercise 26-14 has asked you to use activity-based costing to allocate factory overhead costs to the two products. You have determined that $57,000 of...
-
Balances for each of the following accounts appear in an adjusted trial balances. Identify each as (a) Assets, (b) Liability, (c) Revenue, or (d) Expense. 1. Accounts Receivable 2. Equipment 3. Fees...
-
Baker Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming income before bond interest...
-
Wallace and Hussain type estimators for the variance components of a one-way unbalanced panel data model. (a) Verify the \(E\left(\widehat{q}_{1} ight)\) and \(E\left(\widehat{q}_{2} ight)\)...
-
Using the Monte Carlo setup for the unbalanced one-way error component model considered by Baltagi and Chang (1994), compare the various estimators of the variance components and the regression...
-
Using the Harrison and Rubinfeld (1978) data published in Belsley, Kuh and Welsch (1980) and provided on the Springer website as Hedonic.xls, reproduce Table 9.1. Perform the Hausman test based on...
Study smarter with the SolutionInn App