Hints for Completion of the Comprehensive Problem/Project:

The forms you need for completing the project are in your workbook starting on page 199. If you dont have a workbook or choose not to use your workbook, I have provided a copy of those pages/forms in the Comprehensive Project folder in Blackboard.

If you are using the forms in your workbook, you need to change the name on two accounts in the ledger. On page 203, Account No. 31 should be OJB Capital; on page 204, Account No. 32 should be OJB, Drawing. If you are using the forms provided to you in Blackboard, the names are correct.

Read through all the instructions before you begin. Following the instructions step-by-step will help you complete the problem more easily.

Instruction #5 (End-of-Period Spreadsheet/Worksheet) is optional, so you do not have to complete this. If you do complete the Spreadsheet, you can earn up to 10 points extra credit.

Instruction #1 tells you to enter balances in the Balance column of the ledger. For an example of how this is done, look back to Chapter 2 on page 79. If you look at the bottom of that page, you see ledger accounts for Cash, Accounts Receivable, etc. continuing with all the other accounts on the next page. Notice how the beginning balances of accounts that have balances are entered in the accounts by entering the date, writing the word Balance in the Item column, putting a check mark in the Posting Reference column, and entering the balance in either the debit or credit column under Balance. This is what you need to do in the Comprehensive Problem. These beginning balances will be your starting point for the transactions you will record in the journal and then post to the ledger for March.

Make sure to note the page numbers of the journal given to you in the forms from your workbook or the copy I provided. If you look at the forms, you will see the first form is a Journal and it says it is Page 5 in the top right-hand corner. The second page of the journal is Page 6. You have other journal sheets with different page numbers. Make sure you use the correct page numbers for your posting references in the ledger.

Use Miscellaneous Expense if an expense transaction does not fit into any other expense category listed in the Chart of Accounts.

Even if you work on your project with a fellow student, you must still turn in your own forms/problem. Obvious copies of forms obtained from another student will be construed as cheating, and all parties involved will receive a grade of zero for the project.

No solutions will be provided, and no projects can be returned. If you want a copy of your project, please make an extra copy for yourself before you turn it in. If you have questions on your grade, your instructor will have the project available for two weeks into the semester following the current semester.

NO PROJECTS WILL BE ACCEPTED AFTER THE DUE DATE FOR ANY REASONNO EXCEPTIONS! If you are not finished with your project by the due date, please turn in what you have. I will give partial credit.

COMPREHENSIVE PROBLEM

OJB Company began business in January, 2016. The following transactions occurred in February, 2016:

Feb 1 Purchased supplies on account, $ 400.

2 Received cash from customers on account, $ 1,750.

3 Paid $ 400 on account.

5 Paid technician $ 750 in salary, including the amount owed at the end of January.

8 Billed customers for services provided on account, $ 3,200.

11 Paid cash for advertising on a local website, $ 300.

12 Received $ 3,875 cash for fees earned for jobs completed.

16 Paid electricity bill for the month, $ 290.

17 Received $ 8,200 cash for fees earned for jobs completed.

19 Paid technician $ 750 in salary.

20 Billed customers for services provided on account, $ 6,100.

22 Received cash from customers on account, $ 9,500.

25 Paid phone bill for the month, $ 120.

26 Received cash from customers as an advance payment for technical support services to be provided in the future, $ 2,500.

27 Billed customers for services provided on account, $ 3,900.

28 Received cash from customers on account, $ 5,100.

28 OJB withdrew $8,000 for personal use.

INSTRUCTIONS:

The chart of accounts and the post-closing trial balance as of January 31, 2016 are given. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the ledger. Date the balances February 1, 2016, and place a check mark ( ) in the Posting Reference column. Journalize each of the March transactions in the journal provided using OJB Companys chart of accounts. (Do not insert the account numbers in the journal at this time).

Post the journal to the ledger.

Prepare an unadjusted trial balance.

At the end of March, the following adjustment data were assembled. Use this data to complete instructions ( 5 ) and ( 6 ):

Supplies on hand were $ 600.

Rent expired during the month was $ 1,600.

Unearned fees at the end of the month were $ 2,000.

Insurance expired during the month was $ 300.

Accrued salaries payable were $ 240.

Depreciation on equipment during the month was $ 330.

Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet/worksheet and complete the worksheet.

Journalize and post the adjusting entries.

Prepare an adjusted trial balance.

Prepare an Income Statement, Statement of Owners Equity, and Balance Sheet.

Record and post the closing entries. Income Summary is account #33 in the chart of accounts. Indicate closed accounts in the ledger by inserting a line in both of the Balance columns opposite each closing entry.

10.Prepare a post-closing trial balance.

OJB COMPANY SERVICE CHART OF ACCOUNTS

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

31 OJB, Capital

32 OJB, Drawing

33 Income Summary

41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

OJB COMPANY

POST-CLOSING TRIAL BALANCE

JANUARY 31, 2016

DEBIT CREDIT

Cash 22,100

Accounts Receivable 3,400

Supplies 1,350

Prepaid Rent 3,200

Prepaid Insurance 1,500

Office Equipment 14,500

Accumulated Depreciation 330

Accounts Payable 800

Salaries Payable 120

Unearned Fees 2,500

OJB, Capital 42,300

46,050 46,050

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Could you please help me to derive the income statement for this problem? Here are two hints:

The balance in your Cash account after you post all transactions to the ledger should be a debit of $42,415.

Net Income on your Income Statement for the Year Ended March 31, 2016 should be $22,565.

2014 Name COMPREHENSIVE PROBLEA DATE Income Summa DATE Fees Eanad GATE POST. DEBIT DEBT CREDIT chapter 4 ACCOUNT No. 32 ACCOUNT No. 33 ACCOUNT No. 41 ACCOUNT NO. i51 2014 Name COMPREHENSIVE PROBLEA DATE Income Summa DATE Fees Eanad GATE POST. DEBIT DEBT CREDIT chapter 4 ACCOUNT No. 32 ACCOUNT No. 33 ACCOUNT No. 41 ACCOUNT NO. i51