60.1K

Verified Solution

Link Copied!

ACC 1800-Accounting Procedures Comprehensive Problem Winter 2019 During March 2018 Fred Silver began a business called Silver Accounting Service on March 1, 2018. the following transactions occurred: Silver Delivery Service began operations when Fred invested $14,000 cash, a computer worth $4,000, and office furniture worth $12,000. The business gave Fred capital in exchange for this 3/1 owners' contribution. Paid $3,000 for a six-month insurance policy. The policy begins on March 1. Paid $4,000 for the monthly rent on the office space Paid $800 for office supplies. Performed accounting services for a client and received $3,000 in cash. Completed a complicated tax return for a client and sent them an invoice for $6,000. The client 3/1 3/2 3/4 3/12 3/15 agreed to pay before the end of the month Paid the employees' salaries of $2,000. Purchased supplies of $1,500 on account. Recelved $5,000 cash for performing accounting services. Collected $4,000 in advance for tax services to be completed later. Collected $6,000 from the client billed on 3/15. Received the utility bill of $2,500. The bill will be paid next week. Performed accounting services on account, $3,500. Paid $1,000 on account. Fred withdrew cash of $7,500. 3/18 3/19 3/20 3/22 3/25 3/27 3/28 3/30 3/31 Requirements 1. Record each transaction in the general journal using the following chart of accounts. Explanations are not necessary Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation - Computer Equipment Office Furnmiture Accumulated Depreciation-Office Furniture Accounts Payable Salaries Payable Unearned Revenue Silver, Capital Silver, Withdrawals Income Summary Service Revenue Salaries Expense Depreciation Expense - Computer Equipment Depreciation Expense-Office Furniture Insurance Expense Utilities Expense Rent Expense Supplies Expense Post the transactions to the T-accounts and then compute the balance in each account. 2. 3. Prepare a worksheet using the following adjustment data: Accrued salaries expense is $2,500. a. b. Depreciation on the computer equipment is $100 and depreciation on the office furniture is $500. c. Prepaid Insurance for the month has expired e. Unearned Revenue earned during the month, $400. f. Accrued Service Revenue is $750. Journalize the adjusting entries. 4. Post the adjusting entries to the T-accounts from step 3 and calculate the adjusted balances. Prepare the Income Statement for the month ended March 31, 2018. Prepare the Statement of Owner's Equity for the month ended March 31, 2018. Prepare the classified balance sheet on March 31, 2018. Journalize the closing entries for the month. Post the closing entries to the T-accounts from step 5. 6. 7. 8. 9. 10. Compute the final balances in the T 6. accounts. 11. Prepare a Post-Closing Trial Balance ACC 1800-Accounting Procedures Comprehensive Problem Winter 2019 During March 2018 Fred Silver began a business called Silver Accounting Service on March 1, 2018. the following transactions occurred: Silver Delivery Service began operations when Fred invested $14,000 cash, a computer worth $4,000, and office furniture worth $12,000. The business gave Fred capital in exchange for this 3/1 owners' contribution. Paid $3,000 for a six-month insurance policy. The policy begins on March 1. Paid $4,000 for the monthly rent on the office space Paid $800 for office supplies. Performed accounting services for a client and received $3,000 in cash. Completed a complicated tax return for a client and sent them an invoice for $6,000. The client 3/1 3/2 3/4 3/12 3/15 agreed to pay before the end of the month Paid the employees' salaries of $2,000. Purchased supplies of $1,500 on account. Recelved $5,000 cash for performing accounting services. Collected $4,000 in advance for tax services to be completed later. Collected $6,000 from the client billed on 3/15. Received the utility bill of $2,500. The bill will be paid next week. Performed accounting services on account, $3,500. Paid $1,000 on account. Fred withdrew cash of $7,500. 3/18 3/19 3/20 3/22 3/25 3/27 3/28 3/30 3/31 Requirements 1. Record each transaction in the general journal using the following chart of accounts. Explanations are not necessary Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation - Computer Equipment Office Furnmiture Accumulated Depreciation-Office Furniture Accounts Payable Salaries Payable Unearned Revenue Silver, Capital Silver, Withdrawals Income Summary Service Revenue Salaries Expense Depreciation Expense - Computer Equipment Depreciation Expense-Office Furniture Insurance Expense Utilities Expense Rent Expense Supplies Expense Post the transactions to the T-accounts and then compute the balance in each account. 2. 3. Prepare a worksheet using the following adjustment data: Accrued salaries expense is $2,500. a. b. Depreciation on the computer equipment is $100 and depreciation on the office furniture is $500. c. Prepaid Insurance for the month has expired e. Unearned Revenue earned during the month, $400. f. Accrued Service Revenue is $750. Journalize the adjusting entries. 4. Post the adjusting entries to the T-accounts from step 3 and calculate the adjusted balances. Prepare the Income Statement for the month ended March 31, 2018. Prepare the Statement of Owner's Equity for the month ended March 31, 2018. Prepare the classified balance sheet on March 31, 2018. Journalize the closing entries for the month. Post the closing entries to the T-accounts from step 5. 6. 7. 8. 9. 10. Compute the final balances in the T 6. accounts. 11. Prepare a Post-Closing Trial Balance

Answer & Explanation Solved by verified expert

See Answer