Question - The purpose of this activity is to walk you through the whole accounting process involving a servicing company called September Oaks Inc.
We will start with what we've learned from chapter 1 up to chapter 6. The project starts by journalizing transactions from source documents, posting these transactions, making adjusting entries, creating trial balances, creating financial statements, and then finally closing the accounting period so that the permanent and temporary accounts are ready for the next accounting period.
You are the Senior Accountant for September Oaks Inc. The following information and directions are given to you. Make sure you follow all directions precisely because as an accountant, you know that one little mistake can cause you a whole lot of work later on.
Below is the Trial Balance as of the beginning of December, 2017.
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Trial Balance as of December 1, 2017 Trial Balance
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Account Title
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Debits
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Credits
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Cash
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245,000
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Accounts Receivable
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97,500
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Supplies
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12,000
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Prepaid Insurance
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6,050
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Prepaid Rent
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5,500
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Equipment
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150,000
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Land
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147,800
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|
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Accumulated Depreciation
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44,025
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Accounts Payable
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61,000
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Salaries Payable
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78,500
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Interest Payable
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18,200
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Unearned Service Revenue
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12,100
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Note Payable
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69,800
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Gallow, Joy, Capital
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159,500
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Gallow, Joy, Withdrawal
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75,000
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Service Revenue
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295,725
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Depreciation Expense
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0
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Insurance Expense
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0
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Salaries Expense
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0
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Rent Expense
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0
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Supplies Expense
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0
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Utilities Expense
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0
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Interest Expense
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0
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Total
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738,850
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738,850
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During the month of December, the following transactions occurred:
December 1 Purchased additional equipment in amount of $25,900
1 Prepaid for 3 months of insurance for new equipment bought, $2,100
5 Performed services on account, $2,500
7 Purchased supplies on account for $1,900
10 Received cash on account in amount of $29,000
12 Paid salary expense in amount of $15,900
15 Paid utilities expense in amount of $590
19 Owner withdrew $5,900 for Christmas shopping
21 Paid cash to acquire more land, $160,000
22 Collected cash on account, $1,500
23 Collected cash from a customer in advance for services to be performed later in amount of $10,590
29 Paid interest expense in amount of $2,400
30 Performed more services on account, $9,800
The following are adjusting entries for the month of December 2017:
December 31 Supplies on hand at December 31st was $7,910
31 One month of prepaid insurance has expired from the December 1st transaction
31 Used up $3,950 of the equipment through depreciation
31 The weekly payroll is $2,500 (5-days). This year the payroll ended on a Tuesday.
31 Earned $15,900 of unearned revenue during December
31 Rent expired during the month totaled, $2,500
31 On September 1, 2017 the Notes Payable account had a balance of $69,800.
The balance represents a 6-month, 10% note. Accrue for interest expense.
*Round to the nearest whole dollar!
Requirements: It's very crucial that ALL these steps are done in the order that is listed below.
1. Transfer all the account balances from the trial balance to the T-accounts.
2. Journalize all the transactions that happened from December 1st through the 30th.
3. Post the journal entries to the T-accounts and transfer those totals to the worksheet!.
4. Prepare the adjusting entries as of December 31st.
5. On the worksheet provided, place each adjusting entry next to the account that was effected?
6. Total up all accounts on the Adjusted Trial Balance after adjusting entries are entered.
7. Transfer all amounts to either the Balance Sheet or Income Statement columns of the worksheet.
8. Prepare the income statement, the statement of owner's equity, and the balance sheet.
9. Prepare the necessary closing entries.
10. Prepare a post-closing trial balance for the next accounting period.
Attachment:- Assignment.rar