Listed below are transactions of Zane Bowens new start-up business, since opening his leadership consulting business in
Question:
Listed below are transactions of Zane Bowen’s new start-up business, since opening his leadership consulting business in September 20X1. Mr. Bowen needs some assistance in preparing journal entries and financial statements for his first four months of operation in preparation to establish financial records to see how he’s performing the first few months.
Dec. 1 | Maintenance on equipment of $55, paid on account. |
Dec. 1 | Invests in Research & Development with other consultants of $1,200 on account |
Dec. 1 | Pays $1,000 on R&D payable. |
Dec. 2 | Pays rent for office space, $700 for the month. |
Dec. 5 | Receives $3,700 from customers on account. |
Dec. 5 | Purchases office supplies for cash $325. |
Dec. 8 | Receive cash of $3,750 from customers for services performed. |
Dec. 10 | Pays miscellaneous office expenses, $175. |
Dec. 12 | Bills customers $5,500 for services performed. |
Dec. 20 | Receives $5,750 from customers on account. |
Dec. 24 | Bills customers $4,125 for services performed. |
Dec. 30 | Pays the following expenses in cash. Salaries and wages $1,900; miscellaneous office expenses $450. |
Dec. 31 | Office Supplies used during December, $475 |
Dec. 31 | Receives $23 interest income on deposit accounts. |
Dec. 31 | Reserve for Uncollectible Accounts of $1,575 |
Dec. 31 | Accounts deemed uncollectible of $250 |
Dec. 31 | Prepares Closing Entries for Dec. |
- Enter the transactions shown above in appropriate general ledger accounts (i.e. T-Accounts). Use the following ledger accounts: Cash, Accounts Receivable, Allowance for Uncollectible A/R, Supplies, Equipment, Accumulated Depreciation – Equipment, Accounts Payable, Owner’s Capital, Revenue, Interest Income, Salaries/Wages Expense, Rent Expense, Repairs & Maintenance Exp, Research & Development Expense, Office Expenses, Supplies Expense, Depreciation Expense, Bad Debt Expense, and other applicable accounts.
- Prepare a trial balance for each month-end cutoff.
- Prepare a Balance Sheet for each month-end, an Income Statement for each month-end, a Statement of Owner’s Equity for each month-end, and a Statement of Cash Flows for year-end only.
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson