CASE STUDY - THE COMPLETE ACCOUNTING CYCLE
REQUIREMENT 1: During its first month of operation, the View Corporation, a construction company which specializes in home remodeling, completed the following transactions:
1-Jan - Began business by making a deposit in a company bank account of $24,000, in exchange for 2,400 shares of $5 par value common stock.
1 - Paid the premium on a one-year insurance policy, $2,400.
1 - Paid the current month's rent, $2,080.
3 - Purchased construction equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was placed on account. Payments will be $400.00 per month for nineteen months. The first payment is due 2/1.
8 - Purchased construction supplies from Lakeside Company on credit, $780.
12 - Paid utility bill for January, $308.
16 - Received cash for construction revenue for the first half of January, $2,724.
19 - Made payment to Lakeside Company, $400.
31 - Received cash for construction revenue for the last half of January, $2,620.
31 - Declared and paid cash dividend of $1,600.
Prepare journal entries to record the Feb transactions in the General Journal below.
REQUIREMENT 2: Post the January journal entries to the following T-Accounts and compute ending balances.
REQUIREMENT 3: Prepare a trial balance for February in the space below.
Requirement 4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of landscaping supplies is $388.
c) The estimated depreciation on landscaping equipment is $140.
d) The estimated income taxes are $80.
Requirement 5: Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.
Requirement 6: Prepare an Adjusted Trial Balance in the space below.
Requirement 7: Prepare the financial statements for View Construction Corporation as of January 31 in the space below.
You will only be preparing the Income Statement, Statement of Retained Earning and the Balance Sheet.
The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.
Requirement 8: Prepare the closing entries at Janaury 31 in the General Journal below.
Hint: use the balances for each account which appear on the Adjusted Trial Balance for your closing entries.
Requirement 9: Post the closing entries to the General Ledger T-accounts and compute ending balances. Just add to the adjusted balances already listed.
Requirement 10: Prepare a post-closing trial balance as of January 31 in the space below.
Attachment:- Accounting cycle Assignment.rar