Ask Question, Ask an Expert


Ask Accounting Basics Expert

Q1) For past several years, Dawn Lytle has operated part-time consulting business from home. As of October 1, 2008, Dawn decided to move to rented quarters and to operate business, that was to be known as Sky's-The-Lijnit ConSultin & on full-time basis. 5kv The-Limit Consulting entered into given transactions during October


Oct. 1.


Following assets were received from Dawn Lytle: cash, $12,950; accounts receivable, $2,800; supplies, $1,500; and office equipment, $18,750. There were no liabilities received.


1 Paid three months' rent on a lease rental contract, $3,600. 
2 Paid the premiums on property and casualty insurance policies, $2,400. 
4 Received cash from clients as an advance payment for senaces to be provided and recorded it as unearned fees, $4,150. 
5 Purchased additional office equipment on account from Office Station Co.,$2,500. 
6 Received cash from clients on account, $1,900. 
10 Paid cash for a newspaper advertisement, $325. 
12 Paid Office Station Co. for part of the debt incurred on October 5, $1,250. 
12 Recorded services provided on account for the period October 1-12, $3,750. 
14 Paid part-time receptionist for two weeks' salary, $750. 
17 Recorded cash from cash clients for fees earned during the period October 1-17W $6,250. 
18 Paid cash for supplies, $600.
20 Recorded services provided on account for the period October 13-20, $2,100. 
24 Recorded cash from cash clients for fees earned for the period October 17-24, $3,850. 
26 Received cash from clients on account, $4,450. 
27 Paid part-time receptionist for two weeks' salary, $750. 
29 Paid telephone bifi for October, $250. 
31 Paid electricity bill for October, $300. 
31 Recorded cash from cash clients for fees earned for the period October 25-31, $2,975. 
31 Recorded services provided on account for the remainder of October, $1,500. 
31 Dawn withdrew $5,000 for personal use.




1. Journalize each transaction in two-column journal, referring to following chart of accounts in choosing accounts to be debited and credited. (Don't insert account numbers in the~ journal)


11 Cash  31 Dawn Lytle, Capital
12 Accounts Receivable  32 Dawn Lytle, Drawing
14 Supplies  41 Fees Earned
15 Prepaid Rent  51 Salary Expense
16 Prepaid Insurance  52 Rent Expense
18 Office Equipment  53 Supplies Expense
19 Accumulated Depreciation  54 Depredation Expense
21 Accounts Payable  55 Insurance Expense
22 Salaries Payable  59 Miscellaneous Expense
23 Unearned Fees  


2. Post journal to ledger of four-column accounts.
3. Create unadjusted trial balance.
4. At the end of October, following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during October is $200.

b. Supplies on hand on October 31 are $875.

c. Depreciation of office equipment for October is $675.

d. Accrued receptionist salary on October 31 is $150.

e. Rent expired during October is $1,550.

f. Unearned fees on October 31 are $1,150.


5. Optional: Enter unadjusted trial balance on end-of-period spreadsheet (work sheet) and complete spreadsheet.
6. Journalize and post adjusting entries.
7. Create an adjusted trial balance.
8. Create an income statement, a statement of owner's equity, and a balance sheet.
9. Create and post the dosing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Create a post-closing trial balance.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M922622

Have any Question? 

Related Questions in Accounting Basics

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

1 what is the beta of a firm whose equity has an expected

1. What is the beta of a firm whose equity has an expected return of 21.30%, the risk-free rate is 7%, and the expected return on the stock market is 18%? 2. Two reasons for the agency problem in modern corporations is: ...

On october 1 little bobby corporations stockholders equity

On October 1, Little Bobby Corporation's stockholders' equity is as follows. Common stock, $5 par value                                       $400,000 Paid-in capital in excess of par- common stock             25,000 Ret ...

Data for the year-end adjustments for al geromes courier

Data for the year-end adjustments for Al Gerome's Courier Services are as follows: Insurance expired during the year ($950.00) Depreciation of Equipment for the year ($9,860.00) Salaries accrued at December 31 ($5100.00) ...

Assignment- review of accounting ethics papermany

Assignment- Review of Accounting Ethics Paper Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, or the general public. Sear ...

I on 1115 big co acquired 70 of little co for 350000 euros

I) On 1/1/15 Big Co. acquired 70% of Little Co. for 350,000 Euros (€). The fair value of the non-controlling interest on that date was €150,000. Little's book value on that date was €500,000, and all assets and liabiliti ...

Cost accounting systemsconsider the places of employment of

Cost Accounting Systems Consider the places of employment of the team members or businesses with which the team is familiar and the industries in which they operate. Create a 12-slide presentation, including detailed spe ...

Question 1the following transactions occurred during july o

Question 1 The following transactions occurred during July: o Received $900 cash for services provided to a customer during July. o Received $2,200 cash investment from Barbara Hanson, the owner of the business. o Receiv ...

Assignment expected value and consumer choicesconsumers

Assignment: Expected Value and Consumer Choices Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in im ...

Flint hills companys most recent financial statements

Flint Hills Company's most recent financial statements showed dismal performance. There was a net loss of $10,000 and the Statement of Cash Flows showed a net cash decrease in all categories. The company president called ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen