MODULE ONE-BAYOU CONSULTANTS INSTRUCTIONS Complete the following steps in the order given Joumaise and post the transaction moted below for Bayou Condants duting the firm's first month of business Nore: Use the account sides and numbers in the chart of accounts provided and round all calculations to the nearest whole dolla 2. Prepare a 10-column wolesheet using your knowledge of what has taken place during January and the supplemental adjusting entry information provided 3. Journalise and post all indicated adjusting entries 4. Joumaine and post all closing entries 5. Prepare an income statement, balance sheet, and statement of retained earnings in good form. Noter Blank statements are not provided, use prealabeet program to prepare the required statement 6. Prepare a post-closing trial balance TRANSACTIONS: Date Transaction January 1 January 1 January 3 Issued 15,000 shares of $10 par value common stock in exchange for an initial investment of $320,000 by the firm's owners, Siam Gato and Scotty Phides. Purchased land and an office building for $176,000, of which $20,000 was attributable to the fair market value of the building. A $35.000.cash down payment was made and an 5% five year note was signed for the balance. Interest and 20% of the principal will be paid annually on this date (Assume a 360-day year for interest computation purposes) Issued 2,200 shares of $10 par value common stock for office equipment with a fair market value of $24,870. Purchased office supplies of $2,900 out account from Kilcoyne Office Supplies Established a petty cash fund of $300 Placed an order in the local newspaper for advertising, which will run during January, February, and March. The advertising, which cost $1,500, was paid for on this date in order to obtain a lower price. January 5 January 6 January 7 Purchased a one-year insurance policy, effective February 1, for $2,400 January 8 January 10 Completed several consulting jobs, which totaled $36,000. Cash of $12,800 was collected with the balance due in 30 days. Paid the semi-monthly payroll, which totaled $16,000, to the firm's consultants, all of which are classified as independent contractors. January 15 January 16 January 19 January 30 January 31 January 31 January 31 January 31 Declared a cash dividend of $ 30 per share on this date payable on February 18, Paid Kilcoyne Office Supply $1,500 on the account balance. Received the January telephone bill for $315 Collected $9,000 of the receivable recorded on January 10. In addition, u client indicated that a $5,000 receivable due to Bayou would not be paid for 6 months Bayou accepted a 10% 6-month note receivable on this date. Paid the payroll for the second half of January Received various utility bills for January, which totaled $340. Recorded consulting jobs completed during the last half of January that totaled $41,000 $30,000 was collected in cash with the balance due in 30 days. An audit of the petty cash fund determined the following: Receipts: Postage 62 Freight-out 76 Misc. Exp. 38 Currency and Coin 119 The appropriate entry was recorded from the information above. SUPPLEMENTAL ADJUSTING ENTRY INFORMATION: January 31 4. An inventory of office supplies found that $2300 of supplies remained at January 31. b. The building will be depreciated on a straight-line basis over 30 years with no salvage value. c. The equipment will be depreciated on a straight-line basis over 10 years with no salvage value d. An invoice for a repair of $450 on the office equipment dated January 26 had not yet been recorded. e. Income tax expense of 27% will be recorded on pre-tax accounting income. f. The dividends account will not be closed until the end of the year. g. Be aware that there might be other adjustments necessary in addition to those indicated in items a through f above. CHART OF ACCOUNTS ACCOUNT NUMBER 10 11 15 18 19 20 21 22 30 31 50 51 70 200 210 230 260 265 300 310 350 355 400 410 500 502 505 509 520 530 540 543 544 550 561 562 580 585 590 600 ACCOUNT NAME Cash Petty Cash Accounts Receivable Notes Receivable Interest Receivable Office Supplies Prepaid Insurance Prepaid Advertising Office Equipment Accumulated Depreciation, Office Equipment Building Accumulated Depreciation Building Land Accounts Payable Dividends Payable Income Tax Payable Notes Payable Interest Payable Common Stock Paid-In Capital in Excess of Par Value Retained Earings Dividends Consulting Revenue Interest Revenue Payroll Expense Advertising Expense Insurance Expense Interest Expense Telephone Expense Utilities Expense Repairs Expense Postage Expense Freight-out Supplies Expense Depreciation Expense, Office Equipment Depreciation Expense, Building Miscellaneous Expense Income Tax Expense Cash Over and Short Income Summary MODULE ONE-BAYOU CONSULTANTS INSTRUCTIONS Complete the following steps in the order given Joumaise and post the transaction moted below for Bayou Condants duting the firm's first month of business Nore: Use the account sides and numbers in the chart of accounts provided and round all calculations to the nearest whole dolla 2. Prepare a 10-column wolesheet using your knowledge of what has taken place during January and the supplemental adjusting entry information provided 3. Journalise and post all indicated adjusting entries 4. Joumaine and post all closing entries 5. Prepare an income statement, balance sheet, and statement of retained earnings in good form. Noter Blank statements are not provided, use prealabeet program to prepare the required statement 6. Prepare a post-closing trial balance TRANSACTIONS: Date Transaction January 1 January 1 January 3 Issued 15,000 shares of $10 par value common stock in exchange for an initial investment of $320,000 by the firm's owners, Siam Gato and Scotty Phides. Purchased land and an office building for $176,000, of which $20,000 was attributable to the fair market value of the building. A $35.000.cash down payment was made and an 5% five year note was signed for the balance. Interest and 20% of the principal will be paid annually on this date (Assume a 360-day year for interest computation purposes) Issued 2,200 shares of $10 par value common stock for office equipment with a fair market value of $24,870. Purchased office supplies of $2,900 out account from Kilcoyne Office Supplies Established a petty cash fund of $300 Placed an order in the local newspaper for advertising, which will run during January, February, and March. The advertising, which cost $1,500, was paid for on this date in order to obtain a lower price. January 5 January 6 January 7 Purchased a one-year insurance policy, effective February 1, for $2,400 January 8 January 10 Completed several consulting jobs, which totaled $36,000. Cash of $12,800 was collected with the balance due in 30 days. Paid the semi-monthly payroll, which totaled $16,000, to the firm's consultants, all of which are classified as independent contractors. January 15 January 16 January 19 January 30 January 31 January 31 January 31 January 31 Declared a cash dividend of $ 30 per share on this date payable on February 18, Paid Kilcoyne Office Supply $1,500 on the account balance. Received the January telephone bill for $315 Collected $9,000 of the receivable recorded on January 10. In addition, u client indicated that a $5,000 receivable due to Bayou would not be paid for 6 months Bayou accepted a 10% 6-month note receivable on this date. Paid the payroll for the second half of January Received various utility bills for January, which totaled $340. Recorded consulting jobs completed during the last half of January that totaled $41,000 $30,000 was collected in cash with the balance due in 30 days. An audit of the petty cash fund determined the following: Receipts: Postage 62 Freight-out 76 Misc. Exp. 38 Currency and Coin 119 The appropriate entry was recorded from the information above. SUPPLEMENTAL ADJUSTING ENTRY INFORMATION: January 31 4. An inventory of office supplies found that $2300 of supplies remained at January 31. b. The building will be depreciated on a straight-line basis over 30 years with no salvage value. c. The equipment will be depreciated on a straight-line basis over 10 years with no salvage value d. An invoice for a repair of $450 on the office equipment dated January 26 had not yet been recorded. e. Income tax expense of 27% will be recorded on pre-tax accounting income. f. The dividends account will not be closed until the end of the year. g. Be aware that there might be other adjustments necessary in addition to those indicated in items a through f above. CHART OF ACCOUNTS ACCOUNT NUMBER 10 11 15 18 19 20 21 22 30 31 50 51 70 200 210 230 260 265 300 310 350 355 400 410 500 502 505 509 520 530 540 543 544 550 561 562 580 585 590 600 ACCOUNT NAME Cash Petty Cash Accounts Receivable Notes Receivable Interest Receivable Office Supplies Prepaid Insurance Prepaid Advertising Office Equipment Accumulated Depreciation, Office Equipment Building Accumulated Depreciation Building Land Accounts Payable Dividends Payable Income Tax Payable Notes Payable Interest Payable Common Stock Paid-In Capital in Excess of Par Value Retained Earings Dividends Consulting Revenue Interest Revenue Payroll Expense Advertising Expense Insurance Expense Interest Expense Telephone Expense Utilities Expense Repairs Expense Postage Expense Freight-out Supplies Expense Depreciation Expense, Office Equipment Depreciation Expense, Building Miscellaneous Expense Income Tax Expense Cash Over and Short Income Summary