For the past several years, Emily Page has operated a part-time consulting business from her home. As of June 1, 2010, Emily decided to move to rented quarters and to operate the business, which was to be known as Bottom Line Consulting, on a full-time basis. Bottom Line Consulting entered into the following transactions during June: June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received. Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $2,400. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700. Purchased additional office equipment on account from Office Depot Co., $3,500. Received cash from clients on account, $3,000. Paid cash for a newspaper advertisement, $200. Paid Office Depot Co. for part of the debt incurred on June 5, $750. Recorded services provided on account for the period June 1–12, $5,100. Paid part-time receptionist for two weeks’ salary, $1,100. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500. Paid cash for supplies, $750. Recorded services provided on account for the period June 13–20, $3,100. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150. Received cash from clients on account, $6,900. Paid part-time receptionist for two weeks’ salary, $1,100. Paid telephone bill for June, $150. Paid electricity bill for June, $400. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500. Recorded services provided on account for the remainder of June, $1,000. Emily withdrew $5,000 for personal use. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts. Insurance expired during June is $200. Supplies on hand on June 30 are $650. Depreciation of office equipment for June is $250. Accrued receptionist salary on June 30 is $220. Rent expired during June is $2,000. Unearned fees on June 30 are $1,875. CHART OF ACCOUNTS - 11 Cash 31 Emily Page, Capital 12 Accounts Receivable 32 Emily Page, Drawing 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees INSTRUCTION A)Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry B) Prepare a post-closing trial balance.

For the past several years, Emily Page has operated a part-time consulting business from her home. As of June 1, 2010, Emily decided to move to rented quarters and to operate the business, which was to be known as Bottom Line Consulting, on a full-time basis. Bottom Line Consulting entered into the following transactions during June: June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received. Paid three months’ rent on a lease rental contract, $6,000. Paid the premiums on property and casualty insurance policies, $2,400. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700. Purchased additional office equipment on account from Office Depot Co., $3,500. Received cash from clients on account, $3,000. Paid cash for a newspaper advertisement, $200. Paid Office Depot Co. for part of the debt incurred on June 5, $750. Recorded services provided on account for the period June 1–12, $5,100. Paid part-time receptionist for two weeks’ salary, $1,100. Recorded cash from cash clients for fees earned during the period June 1–16, $6,500. Paid cash for supplies, $750. Recorded services provided on account for the period June 13–20, $3,100. Recorded cash from cash clients for fees earned for the period June 17–24, $5,150. Received cash from clients on account, $6,900. Paid part-time receptionist for two weeks’ salary, $1,100. Paid telephone bill for June, $150. Paid electricity bill for June, $400. Recorded cash from cash clients for fees earned for the period June 25–30, $2,500. Recorded services provided on account for the remainder of June, $1,000. Emily withdrew $5,000 for personal use. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts. Insurance expired during June is $200. Supplies on hand on June 30 are $650. Depreciation of office equipment for June is $250. Accrued receptionist salary on June 30 is $220. Rent expired during June is $2,000. Unearned fees on June 30 are $1,875. CHART OF ACCOUNTS - 11 Cash 31 Emily Page, Capital 12 Accounts Receivable 32 Emily Page, Drawing 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated Depreciation 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees INSTRUCTION A)Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry B) Prepare a post-closing trial balance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

June 1. The following assets were received from Emily Page: cash, $20,000; accounts receivable, $4,500; supplies, $2,000; and office equipment, $11,500. There were no liabilities received.

Paid three months’ rent on a lease rental contract, $6,000.
Paid the premiums on property and casualty insurance policies, $2,400.
Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $2,700.
Purchased additional office equipment on account from Office Depot Co., $3,500.
Received cash from clients on account, $3,000.
Paid cash for a newspaper advertisement, $200.
Paid Office Depot Co. for part of the debt incurred on June 5, $750.
Recorded services provided on account for the period June 1–12, $5,100.
Paid part-time receptionist for two weeks’ salary, $1,100.
Recorded cash from cash clients for fees earned during the period June 1–16, $6,500.
Paid cash for supplies, $750.
Recorded services provided on account for the period June 13–20, $3,100.
Recorded cash from cash clients for fees earned for the period June 17–24, $5,150.
Received cash from clients on account, $6,900.
Paid part-time receptionist for two weeks’ salary, $1,100.
Paid telephone bill for June, $150.
Paid electricity bill for June, $400.
Recorded cash from cash clients for fees earned for the period June 25–30, $2,500.
Recorded services provided on account for the remainder of June, $1,000.
Emily withdrew $5,000 for personal use.

At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts.

Insurance expired during June is $200.
Supplies on hand on June 30 are $650.
Depreciation of office equipment for June is $250.
Accrued receptionist salary on June 30 is $220.
Rent expired during June is $2,000.
Unearned fees on June 30 are $1,875.

CHART OF ACCOUNTS -

11 Cash 31 Emily Page, Capital
12 Accounts Receivable 32 Emily Page, Drawing
14 Supplies 41 Fees Earned
15 Prepaid Rent 51 Salary Expense
16 Prepaid Insurance 52 Rent Expense
18 Office Equipment 53 Supplies Expense
19 Accumulated Depreciation 54 Depreciation Expense
21 Accounts Payable 55 Insurance Expense
22 Salaries Payable 59 Miscellaneous Expense
23 Unearned Fees

INSTRUCTION

A)Prepare and post the closing entries. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry

B) Prepare a post-closing trial balance.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here