| Emma Pfhoul started a computer consulting business, Phoulish Consulting Services, in December, 20X1. | |
| The following transactions occurred during the month. | | | | | | | |
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| 1) On 12 /2, Emma invested $55,000 of cash and $25,000 of equipment into the business. | | | |
| 2) On 12/3, Emma acquired the assets and liabilities of another business that had closed due to the death | |
| of the owner. She paid $35,000 cash and acquired the following: Equipment $13,000, Accounts Receivable |
| $20,000, & Office Supplies $9,000 and he assumed the liability for Accounts Payable of $7,000. | |
| 3) On 12/4, paid a total of $3,900 to her landlord for the following: current month's rent of $1,300, | | |
| $1,300 as an advance payment for January rent and $1,300 as a security deposit (which will be returned |
| upon termination of the three year lease), check #1001. | | | | | | |
| 4) On 12/10, the business purchased $5,000 worth of office supplies on account from Gullickson Enterprises. |
| 5) On 12/15, Shakira Co. was billed $23,000 on invoice #101 for services that had been rendered. | | |
| 6) On 12/20, paid salaries of $2,200, check number 1002. | | | | | | |
| 7) On 12/22, purchased $1,200 worth of office supplies from Mayer Bros Co on account. | | | |
| 8) On 12/27, received a check in the amount of $16,000 from MacAnally Inc as a partial payment on the amount of |
| receivables purchased on 12/3. | | | | | | | | |
| 9) On 12/30, paid electric bill of $800, check #1003. | | | | | | | |
| 10) On 12/30, received $3,000 from cash customers. | | | | | | | |
| 11) On 12/31, Emma withdrew $800 for adult beverages for her personal New Years' Eve party. | | |
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| INSTRUCTIONS: | | | | | | | | | | | |
| 1) Journalize each of the above transactions into the journal provided. (You do not have to list explanations) |
| 2) Post the journal to the general ledger provided (Make up appropriate three digit account numbers). | |
| NOTE: Post all cash transactions to the formal general ledger & the remaining accounts to | |
| either the formal general ledgers or to "T Accounts" | | | | | |
| 3) Journalize the following Adjusting Entries. | | | | | | | |
| a) Accrued salaries on December 31st were $1,000. | | | | | | |
| b) Depreciation on the office equipment for December was $900. | | | | | |
| c) Office Supplies on hand at the end of December were $3,800. | | | | | |
| 4) Post the Adjusting Entries. | | | | | | | | | |
| 5) Journalize Closing Entries (NOTE: You do not have to post the closing entries). | | | |
| 6) Briefly explain the reason for using subsidiary ledgers below. | | | | | | |
| 7) Prepare a formal Income Statement as of December 31, 20X1. | | | | | |
| 8) Prepare a formal Statement of Owner's Equity as of December 31, 20X1. | | | | |
| 9) Prepare a formal Balance Sheet as of December 31, 20X1.(EITHER FORMAT) | | | | |
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