Net income:

$$53,775$

EXCEL TEMPLATE

PR $4-5$B Complete accounting cycle

For the past several years, Jeff Horton has operated a part$-$time consulting business from $4,5$

home. As of April $1,20$Y$6,$ Jeff decided to move to rented quarters and to operate the busing his

which was to be known as Rosebud Consulting, on a full$-$time basis. Rosebud entered into

following transactions during April:

Apr. $1.$ The following assets were received from Jeff Horton in exchange for common stock: cash, $$20,000$; accounts

receivable, $$14,700$; supplies, $$3,300$; and office equipment, $$12,000.$ There were no liabilities received,

Paid three months' rent on a lease rental contract, $$6,000.$

Paid the premiums on property and casualty insurance policies, $$4,200.$

Received cash from clients as an advance payment for services to be provided and recorded it as unearned

fees, $$9,400.$

Purchased additional office equipment on account from Smith Office Supply Co$.,$ $$8,000.$

Received cash from clients on account, $$11,700.$

Paid cash for a newspaper advertisement, $$350.$

Paid Smith Office Supply Co$.$ for part of the debt incurred on April $5,$ $$6,400.$

Recorded services provided on account for the period April $1-12,$ $$21,900.$

Paid receptionist for two weeks' salary, $$1,650.$

Record the following transactions on Page $2$ of the journal:

Recorded cash from cash clients for fees earned during the period April $1-16,$ $$6,600.$

Paid cash for supplies, $$725.$

Recorded services provided on account for the period April $13-20,$$$16,800.$

Recorded cash from cash clients for fees earned for the period April $17-24,$ $$4,450.$

Received cash from clients on account, $$26,500.$

Paid receptionist for two weeks' salary, $$1,650.$

Paid telephone bill for April, $$540.$

Paid electricity bill for April, $$760.$

Recorded cash from cash clients for fees earned for the period April $25-30,$ $$5,160.$

Recorded services provided on account for the remainder of April, $$2,590.$

Paid dividends, $$18,000.$

Instructions

Journalize each transaction in a two$-$column journal starting on Page $1,$ referring to the fol$-$

lowing chart of accounts in selecting the accounts to be debited and credited. $($Do not insert

the account numbers in the journal at this time.$)$

$11$ Cash

$12$ Accounts Receivable

$14$ Supplies

$15$ Prepaid Rent

$16$ Prepaid Insurance

$18$ Office Equipment

$19$ Accumulated Depreciation

$21$ Accounts Payable

$22$ Salaries Payable

$23$ Unearned Fees

Post the journal to a ledger of four$-$column accounts.

Prepare an unadjusted trial balance.

At the end of April, the following adjustment data were assembled. Analyze and use these data

to complete parts $(5)$ and $(6).$

$($a$)$ Insurance expired during April is $$350.$

$($b$)$ Supplies on hand on April $30$ are $$1,225.$

$($c$)$ Depreciation of office equipment for April is $$400.$

$($d$)$ Accrued receptionist salary on April $30$ is $$275.$

$($e$)$ Rent expired during April is $$2,000.$

$($f$)$ Unearned fees on April $30$ are $$2,350.$