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Sassafras Sis, Inc Chart of Accounts Balance Sheet Accounts Income Statement Accounts 1 Assets 4 Revenue 11 Cash Debit 41 Revenues Credit 12 Accounts Receivable Debit 13 Supplies Debit 5 Expenses 14 Prepaid Insurance Debit 51 Expenses Debit 15 Office Equipment Debit 16 Accum. Depreciation Office Eq. Credit 2 Liabilities 21 Accounts Payable Credit 22 Accruals ie taxes payable) Credit 23 Unearned Revenue Credit 3 Stockholders' Equity 31 Common Stock Credit 32 Retained Earnings Credit 33 Dividends Debit Sassafras Sis, Inc is a pool design firm based in Orona, Florida. Based on the following fact pattern complete the entire accounting cycle case study for May, 20xx 1 Record the following entries for the month of May in the General Journal (G) pages 31 and 32 May 1 Invested $25,000 cash in exhange for Common Stock 1 Paid cash $1,200 for 12 month insurance policy 3 Paid cash for various expenses $3,000 5 Purchased supplies $2,000 on account. 10 Paid cash for office equipment $3,600 17 Paid $1,000 cash to creditor 20 Revenue from designing several pools $12,000. Received $7,000 cash, remainder on account. 22 Received $900 cash from customer for future work 24 Received $1,000 cash from customer paying down account 25 Social media likes" exceed 5000. Marketing anticipates a sales bump of $1 per like 30 Board of Directors declared and paid cash Dividend $1,000 EXCLUDE THE DESCRIPTION ALWAYS LEAVE A SPACE BETWEEN SEPARATE TRANSACTIONS 2 Post to General Ledger (1) 3 Produce the Unadjusted Trial Balance 4 Record Adjusting Entries on Journal Page 3 Entry Type May 31 Supplies on hand at month and $250 Periodic Inventory expense 31 Office Equipment Depreciates staight line over 3 years Estimated Expense 31 Record insurance expense for month and Deferred Expense You Prepaid an expense) 31 Earned $300 of Unearned Revenue Deferred Revenue (Customer Prepaid you) 31 five hours design work on long term contract, $100 per hour Accrued Revenue 31 Record tax expense Tax rate 40% Accrued Expense 5 Post Adjusting Entries to the General Ledger (GL) 6 Produce the Adjusted Trial Balance 7 Produce an income Statement, Retained Earnings Statement and Balance Sheet 8 Record on Journal Page 4 the closing of all temporary accounts directly into Retained Earnings 10 Post to General Ledger (GL) 11 Produce the Post Closing Trial Balance General Journal Page: J1 Date Post Ref. Description Debit Credit 2 3 2 3 4 4 5 5 6 7 7 8 8 9 9 10 11 12 10 11 12 13 14 13 14 15 15 16 17 16 12 18 19 20 21 18 19 20 21 22 23 22 23 24 25 24 25 26 27 26 27 28 29 28 29 30 31 32 33 30 31 32 33 34 34 General Journal Page: J2 Extra page if needed Post Rer Date Description: Debit Credit - 2 2 3 4 5 6 7 7 8 8 9 9 10 11 10 11 12 12 13 14 13 14 15 16 17 15 16 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 28 27 28 29 29 30 31 32 33 34 30 31 32 33 34 Page: J3 General Journal ADJUSTING ENTRIES Description: Post Rer Date Debit Credit 1 2 3 4 5 5 6 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 22 21 22 23 24 23 24 25 25 26 26 27 27 28 29 28 29 30 30 31 31 32 33 34 32 33 34 Page: J4 General Journal CLOSING ENTRIES Description: Post Ret Date Debit Credit 2 3 4 5 6 7 8 8 9 9 10 10 11 12 13 14 12 13 14 15 IS 16 16 17 17 18 19 18 19 20 21 20 21 22 23 22 23 24 25 24 25 26 27 28 26 27 28 29 29 30 31 30 31 32 33 34 33 Sassafras Sis, Inc General Ledger 11 - Cash Post Ref. Balance Date Item Debit Credit Debit Credit 12 - Accounts Receivable Post Item Ref: Balance Date Debit Credit Dehit Credit 13. Supplies Balance Post Ref. Date Item Debit Credit Debit Credit 14 - Prepaid Insurance Post Item Ref. Balance Date Debit Credit Debit Credit Sassafras Sis, Inc General Ledger 15 - Office Equipment Post Balance Date Item Ref. Debit Credit Debit Credit 16 - Aceum. Depreciation Office Eq. Post Item Ref. Debit Balance Date Credit Debit Credit 21 - Accounts Payable Balance Date Post Rer. Item Debit Credit Debit Credit 22 - Accruals Balance Post Rer. Date Item Debit Credit Debit Credit 23 - Unearned Revenue Post Item Ref. Balance Date Debit Credit Debit Credit 31 - Common Stock Balance Date Post Rer Item Debit Credit Debit Credit Sassafras Sis, Inc General Ledger 32 - Retained Earnings Post Item Ref. Balance Date Debit Credit Debit Credit 33 - Dividends Post Balance Date Item Rer Debit Credit Debit Credit 41 - Revenues Post Rer. Balance Date Item Debit Credit Debit Credit 51 - Expenses Post Ref. Balance Date Item Debit Credit Debit Credit Income Statement Revenues Less: Operating Expenses Income from Operations Less: Tax Expense Net Income Retained Earnings Statement Beginning Retained Earnings Add: Net Income Less: Net Loss (if no net income) Less: Dividends Ending Retained Earnings Case Study 3 Statement of Stockholders' Equity Common Stock Retained Earnings Total Beginning Balances Issued Stock Net income Dividends Ending Balances Balance Sheet ASSETS TOTAL ASSETS LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY TOTAL SHAREHOLDER'S EQUITY TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY Unadjusted Trial Balance Debit Credit 11-Cash 12-Accounts Receivable 13-Supplies 14-Prepaid Insurance 15-Office Equipment 16-Accum. Depreciation Office Eq. 21-Accounts Payable 22-Accruals 23-Uncamed Revenue 31-Common Stock 32-Retained Famings 33-Dividends 41-Revenues 51-Expenses Adjusted Trial Balance Debit Credit 11-Cash 12.-Accounts Receivable 13-Supplies 14-Prepaid Insurance 15-Office Equipment 16-Accum. Depreciation Office Eq. 21-Accounts Payable 22-Accruals 23-Uneamed Revenue 31-Common Stock 32-Retained Earnings 33-Dividends 41-Revenues 51-Expenses Post Closing Trial Balance Debit Credit 11-Cash 12- Accounts Receivable 13-Supplies 14-Prepaid Insurance 15-Office Equipment 16-Accum. Depreciation Office Eq. 21-Accounts Payable 22-Accruals 23-Unearned Revenue 31-Common Stock 32-Retained Earings 33-Dividends 41-Revenues 51-Expenses

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