Comprehensive Problem for Extra Credit ACC 211

profileSuperClass
 (Not rated)
 (Not rated)
Chat

Comprehensive Problem for Extra Credit – ACC 211

 

 

 

The following problem is available for a maximum of 15 extra credit points.

 

This problem is due Monday, March 30th at the beginning of your class session.

 

This is a long problem and should not be completed in one sitting.  I would suggest preparing a part at a time.  It takes you through the complete accounting cycle – from journalizing to closing.

 

While the problem does not have to be typed, presentation does influence grading.

 

I would suggest working the problem and then recopying/typing the problem for grading.

 

You must just the blank journal pages for journalizing and the blank ledger pages for posting.  Both of these are located on Sakai under the resources tab.

 

 

 

 

 

 

 

 

 

 

 

 

Kristin Malone opened Kristin’s Maids Cleaning Service on July 1, 2014.  During July, the company completed the following transactions.

 

 

 

July      1          Invested $14,000 cash in the business.

 

1          Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.

 

3          Purchased cleaning supplies for $800 on account.

 

5          Paid $1,800 on a 1-year insurance policy, effective July 1.

 

12        Billed customers $3,800 for cleaning services.

 

18        Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies.

 

20        Paid $1,600 for employee salaries.

 

21        Collected $1,400 from customers billed on July 12.

 

25        Billed customers $1,500 for cleaning services.

 

31        Paid gasoline for the month on the truck, $400.

 

31        Withdrew $600 cash for personal use.

 

 

 

The chart of accounts for Kristin’s Maids Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation-Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Owner’s Capital, No. 306 Owner’s Drawings, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense.

 

 

 

Instructions

 

(a)       Journalize and post the July transactions. Use pageJ1 for the journal. Use blank journal pages and blank ledger pages for posting.  These are available on Sakai.

 

(b)      Prepare a trial balance

 

(c)   Record adjusting journal entries based on the information below.  Use page J2 for the journal.

 

            (1)   Unbilled fees for services performed at July 31 were $1,300.

 

            (2)   Depreciation on equipment for the month was $200.

 

            (3)   One-twelfth of the insurance expired.

 

            (4)   An inventory count shows $100 of cleaning supplies on hand at July 31.

 

            (5)   Accrued but unpaid employee salaries were $500.

 

     (d)  Post the adjusting journal entries to the ledger.

 

     (e)    Prepare an adjusted trial balance. 

 

     (f)     Prepare the income statement and owner’s equity statement for July, and a classified balance sheet

 

                        at July 31, 2014.

 

     (g)  Journalize and post the closing entries to the ledger, and complete the closing process. Use page J3 for     the journal.

 

 

     (h)  Prepare a post-closing trial balance at July 31.  

    • 8 years ago
    Comprehensive Problem for Extra Credit ACC 211
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      kristins_maids_cleaning_service_1445390451.xlsx