Assignment #3 – The Accounting Cycle in Review This assignmentis out of 101 marks and is weighted 15% of your final grade.
Comprehensive Question- Jerry’s Mobile Car Wash Jerry Fishopened Jerry’s Mobile Car Wash on Sept 1, 2017.
In Sept, the following transactions were completed.
Sept 1 Invested $14,000 cash in the business
1 Purchased a used truck for $26,400, paying $6,400 cash andsigning a note payable for the balance
1 Collected $3,000 from XYZ for their car cleaning needs forSept, Oct, and Nov.
3 Purchased cleaning supplies on account for $850
5 Paid $1,800 on a one-year insurance policy, effective Sept1
12 Billed customers $3,800 for cleaning services
18 Paid $400 of amount owed on cleaning supplies
20 Paid $1,600 for employee's salaries
21 Collected $1,400 from customers billed on Sept 12
25 Billed customers for $3,000 for cleaning services
30 Paid gas and oil for the month on the truck $350
30 Withdrew $1,600 to pay personal property taxes
Additional Information:
1. Annual payments of $2,000 are required on the note.
Required:
1. Journalize and post the Sept transactions. Jerry;s Mobile CarWash records all prepaid expenses and unearned revenues as assetsand liabilities
2. Prepare an unadjusted trial balance at Sept 30, 2017.
3. Journalize and post the following adjustments
a. Earned and unbilled fees at Sept 30, 2017 were $1,500.
b. The truck has an estimated useful life of four years and noresidual value.
c. The insurance policy is effective Sept 1, 2017 and expires onAugust 31, 2018
d. An inventory count shows $375 of cleaning supplies on hand atSept 30, 2017
e. At Sept 30, 2017, $1,000 of the fees collected in advancehave been earned.
f. Accrued but unpaid employee salaries were $400.
g. The note payable has a 6% annual interest rate.
4. Prepare an adjusted trial balance at Sept 30, 2017.
5. Prepare in good form an Income Statement, Statement ofOwner’s Equity and a Classified Balance Sheet for the month endedSept 30, 2017.
6. Journalize and post the closing entries.
7. Prepare a post closing trial balance at Sept 30, 2017.
8. Jerry’s Mobile Car Wash has chosen to prepare reversingentries. Prepare necessary reversing entries in October 2017. Theydo not need to be posted.
Important Note:
Templates can be found on the blackboard under the tab“Activities and Assignments. Use of these templates is highlyrecommended.
The following template In Excel are available
? General Journal, General Ledger and Trial Balances
Check Figures:
? The balance in the cash ledger account is $6,250 on the debitside
? The closing balance in Jerry Fish, Capital at September 30,2017 is $18,075 on the credit side.
Tips
? Posting references are required
? All entries should be posted into one general ledger (not3
) ? In the general ledger, the particulars column can be leftblank
? You must number each page of the general journal
? There are plenty more hints and tips on the discussionboard
