The Complete Accounting Cycle

Two Months

P$10.$ On June $1,20$XX$,$ Bob Lutz opened Sole Proprietorship, Lutz Computer

Repair Service. During the month, he completed the following transactions for the

Gefleany: Began business by depositing $$20,000$ in a bank account in the name of

company.

$1$ Paid the rent for the store for current month, SI$,700.$

$1$ Paid the premium on a one$-$year insurance policy, Sl$,920.$

$2$ Purchased repair equipment from Bilbao Company, S$16,800.$ Terms w

$$2,400$ down and $$1,200$ per month for one year. First payment is d

June l$.$

$5$ Purchased repair supplies from Rusin Company on credit, S$1,872.$

$8$ Paid cash for an advertisement in a local newspaper, S$240.$

$15$ Received cash repair revenue for the first half of the month, S$1,600.$

$21$ Paid Rusin Company on account, $$900.$

$30$ Received cash repair revenue for the last half of May, S$3,900.$

$30$ Made a withdrawal, $$1,200.$

REQUIRED FOR JUNE

Record the June transactions. Include the Post. Ref.column and fill in using

the account numbers listed in requirement $2.$

Open the following accounts: Cash $(111)$; Prepaid Insurance $(117)$; Repair

Sup$-$plies $(119)$; Repair Equipment $(144)$; Accumulated Depreciation$-$Repair

Equip$-$ment $(145)$; Accounts Payable $(212)$; B$.$ Lutz, Capital $(311)$; B$.$ Lutz,

Withdrawals $(313)$; Income Summary $(314)$; Repair Revenue $(411)$; Store Rent REQUIRED FOR JUNE

$1.$ Record the June transactions. Include the Post. Ref.column and fill in using the account numbers listed in requirement $2.$

$2.$ Open the following accounts: Cash $(111)$; Prepaid Insurance $(117)$; Repair Sup$-$plies $(119)$; Repair Equipment $(144)$; Accumulated Depreciation$-$Repair Equip$-$ment $(145)$; Accounts Payable $(212)$; B$.$ Lutz, Capital $(311)$; B$.$ Lutz, IVithdravals $(313)$; Income Summary $(314)$; Repair Revenue $(411)$; Store Rent Expense $(511)$; Advertising Expense $(512)$; Insurance Expense $(513)$; Repair Supplies Expense $(514)$; and Depreciation Expense$-$Repair Equipment $(515).$

$3.$ Using the following information, record adjusting entries in the general journal and post to the ledger accounts:

d$.$ One month's insurance has expired.

e$.$ The remaining inventory of unused repair supplies is $\backslash (\backslash$mathbf$\{$S $676\}\backslash ).$

f$.$ The estimated depreciation on repair equipment is $\backslash (\backslash$mathbf$\{$S $280\}\backslash ).$

$4.$ From the accounts in the ledger, prepare an adjusted trial balance after adjusting entries.

$($Note: Normally, a trial balance is prepared before adjustments and then a Adjusted Trial Bal ance is prepared after adjusting entries.

$5.$ From the adjusted trial balance, prepare an income statement, a statement of own$-$er's equity, and a balance sheet for June.