MIKE’S QUALITY REPAIR SERVICES
Accounting 101 Term Project
In this project, you will use the concepts you have learned inChapters 1 – 6 to complete the accounting functions for a businessfor a single month. You will start with the initial investment ofcash in the business, and end the month by preparing the month-endadjustments and financial statements. The purpose of this projectis to bring together the concepts that you have learned so far inthis class, and see how all of the pieces fit together.
CHART OF ACCOUNTS
Assets Revenue
111 Cash 411 Income from Services
112 Accounts Receivable
114 Supplies Expenses
116 Prepaid Insurance 511 Advertising Expense
121 Office Equipment 512 Supplies Expense
122 Accum. Depr., Office Equipment 513 Insurance Expense
123 Tools 514 Utilities Expense
124 Accum. Depr., Tools 515 Salaries Expense
125 Truck 516 Truck Expense
521 Depreciation Expense - Office Equipment
Liabilities 522 Depreciation Expense - Tools
211 Accounts Payable
Owner’s Equity
311 Mike Hammer, Capital
312 Mike Hammer, Drawing
330 Income Summary
Instructions
Download the Excel file found in Canvas, Mike’s Quality RepairServices.xlsx. You will complete all work for this assignment inthat file, and upload it to Canvas when completed.
Journalize the transactions for the month of January, 2018,beginning on page GJ1. Be sure and list the Debit Account(s) first;Credit Account(s) next. Write a brief explanation for eachtransaction, and skip a line in-between transactions.
Post the journal entries to the general ledger accounts. Be sureand use the Post Reference #s for each posting. (Hint: the balanceof the cash account after all journal entries have been postedshould be $9,915).
Prepare the Trial Balance section of the worksheet.
Prepare the Adjustments section of the worksheet.
Compute and record the adjustment for supplies used during themonth. An inventory showed supplies on hand of $250.
One month insurance has been used up.
Record the adjustment for depreciation of Office Equipment of$85 for the month.
Record the adjustment for depreciation of Tools of $125 for themonth.
Complete the worksheet.
Prepare an Income Statement, Statement of Owner’s Equity, andBalance Sheet for the month. Be sure to add the date to eachfinancial statement.
Journalize and post the Adjusting entries.
Journalize and post the Closing entries.
Prepare a Post-closing Trial Balance.
Transactions for the month:
You made the following transactions for Mike’s Quality RepairServices during the month of January:
Jan. 1 Invested $15,000 cash, and a truck with a fair marketvalue of $8,500 into the business.
3 Paid $1800 to Liberty Mutual for a 1-year insurance policy.The policy is effective immediately. Ck# 1001
4 Bought tools from Sears on account, $7500, Inv. #X-1357
5 Bought computer system from Ben’s Computer Center, $5000,putting $2500 down and putting the balance on account, Ck. #1002,Inv. #Y-4152.
6 Bought supplies-Office Mart, $850, Ck. #1003.
7 Performed services for cash, $1,650.
10 Performed services on account, $1275.
12 Received and paid telephone bill, $420, ck#1004.
13 Bought supplies on account from Office Mart, $900, Inv.AB1477.
15 Received and paid the utility bill, $600, Ck. #1005.
15 Paid salary for office clerk, 1/1-1/15-$1000, Ck# 1006.
20 Received The Times Review bill for advertising for the month,$410, Inv. #TR198.
(Note that you did not PAY the bill – you only received it).
21 Performed services $7,250, received $2,250 cash, with thebalance due in 30 days.
27 Received from clients $1,275, for work completed on January10.
28 Paid for oil change on truck, $90, ck#1007.
29 Withdrew cash for personal use, $1500, Ck. #1008.
30 Paid salary for office clerk, 1/16-1/30, $1000, ck#1009.
30 Made partial payment of $500 to Office Mart for suppliespurchased on January 13th, Ck#1010.
