60.1K

Verified Solution

Link Copied!

As of January 1, 2017 , Will Watkins decided to open and operate a consulting business, Efficiency Consulting, Inc., on a full - time basis. Therefore, Efficiency Consulting is a brand new business as of 1/1 and engaged in the following transactions during January : Jan . 1 The business received a cash investment of $10,000 from Will. The company issued 2,000 shares of $4 par common stock. 1 Paid two months rent on a lease rental contract, $4,800. 2 Paid the six - month premiums on property and casualty insurance policies $3,6 00. 4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees $3,250. 5 Purchased office equipment from Office Station Co. at a cost of $1850 by paying $400 down and signing a note payable, 5%, 90 - day, for the remainder. 6 Received cash from clients on account $1,8 00. 10 Paid cash for a Facebook advertisement $ 1, 625. (miscellaneous expense) 12 Recorded services provided on account for the period Jan. 1 12 $6,50 0. 15 Recorded cash from cash clients for fees earned during the period Jan. 1 15 $ 5,04 0. 16 Paid part - time recepti onist for two weeks salary $2,8 00. 18 Paid cash for supplies $1,0 00. 20 Recorded services provided on account for the period Jan. 13 20 $4,900. 25 Recorded cash from cash clients for fees earned for the period Jan. 16 25 $5,140. 26 Received cash from clients on account $3,450. 27 Paid part - time recepti onist for two weeks salary $2,800. 30 Paid utilities bill for January $7 60. (miscellaneous expense) 31 Recorded cash from cash clients for fees earned for the period Jan. 26 31 $3,990. 31 Recorded services provided o n account for the remainder of January $1,42 0. 31 Paid dividends $78 0.

EFFICIENCY CONSULTING CHART OF ACCOUNTS 11 Cash 22 Salaries Payable 41 Fees Earned 12 Accounts Receivable 23 Deferred Fees Revenue 51 Salary Expense 14 Supplies 24 Interest Payable 52 Rent Expense 15 Prepaid Rent 25 Notes Paya ble 53 Supplies Expense 16 Prepaid Insurance 31 Common Stock , $4 par 54 Depreciation Expense 18 Office Equipment 32 Additional Paid in Capital 55 Insurance Expense 19 Accumulated Depreciation 33 Retained Earnings 56 Interest Expense 21 Accounts Payable 34 Dividends 59 Miscellaneous Expense

INSTRUCTIONS:

1. Set up a T account ledger based upon the Chart of Accounts. 2. Journalize each January transaction in the general journal.

3. Post each entry from the journal to the ledger.

4. Prepare an unadjusted trial balance on an end - of - period spreadsheet (worksheet) and complete the worksheet using the following adjustment data: a. Insurance coverage expired during January $600 . b. Supplies on hand on Jan. 31 $850. c. Depreciation of o ffice equipment for the month $2 00. d. Accrued salary expense for receptionist at Jan. 31 $ 42 0. e. Rent expired during January $2,40 0. f. Deferred fees revenue as of January 31 $1 , 7 50. g. Record accrue d interest on note. Assume 360 - day year. Round amount to nearest cent.

5. Use the completed end - of - period spreadsheet to journalize and post adjusting entries.

6. Use the completed end - of - period spreadsheet to prepare required end - of - month financial statements: statement of net income and comprehensive income , statement of shareholders equity , classified balance sheet , and statement of cash flows by the indirect method. (NOTE: There were no other comprehensive income gains or losses in the current year .)

7. Journalize and post necessary closing entries. The company uses the temporary income summary account.

8. Prepare a post - closing trial balance.

Can someone please help with these questions? Thanks

Answer & Explanation Solved by verified expert

See Answer