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 $\backslash$$$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, $\backslash (\backslash$mathrm$\{$Sl$\},920\backslash ).$

$2$ Purchased repair equipment from Bilbao Company, S$16,800.$ Terms w $\backslash (\backslash$$ $2,400\backslash )$ down and $\backslash (\backslash$$ $1,200\backslash )$ 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, $\backslash ($ S $1,600\backslash ).$

$21$ Paid Rusin Company on account, $\backslash (\backslash$$ $900\backslash ).$

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

$30$ Made a withdrawal, $\backslash (\backslash$$ $1,200\backslash ).$

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, 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. $2014$

June

$30$

$*$

$30$

$30$

B$.$ Lutz, Capital $-3,350$

To close the Income Summary account

$30\backslash (\backslash$cdot $\backslash )$

To close the Withdrawals account

ect the accounts in the order of Assets, Laibilities, Owner's Equity, Revenues, and Expenses. Lutz Repair Service

Balance Sheet

For the Month Ended June $30,2014$

Assets

Liabilities

Accounts payable

$\backslash$$ $9\mathrm{.}000$

Totalassets

Total liabilities

Owner's Equity

B$.$ Lutz, capital

Total liabilities and owner's equity

the accounts in the order of Assets, Laibilities, Owner's Equity, Revenues, and Expenses.