For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: Jul. 1 The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. 1 Paid three months’ rent on a lease rental contract, $6,000. 2 Paid the premiums on property and casualty insurance policies, $4,500. 4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. 5 Purchased additional office equipment on account from Office Necessities Co., $5,100. 6 Received cash from clients on account, $12,750. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. 12 Provided services on account for the period July 1–12, $14,200. 14 Paid receptionist for two weeks’ salary, $1,500. Record the following transactions on Page 2 of the journal: Jul. 17 Received cash from cash clients for fees earned during the period July 1–17, $10,400. 18 Paid cash for supplies, $1,000. 20 Provided services on account for the period July 13–20, $9,000. 24 Received cash from cash clients for fees earned for the period July 17–24, $8,500. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks’ salary, $1,500. 29 Paid telephone bill for July, $325. 31 Paid electricity bill for July, $675. 31 Received cash from cash clients for fees earned for the period July 25–31, $7,100. 31 Provided services on account for the remainder of July, $5,500. 31 Jolene withdrew $20,000 for personal use. Required: 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 2. Post the July transactions. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. B. Add the appropriate posting reference to the journal in CengageNOW. 3. Prepare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). • Insurance expired during July is $375. • Supplies on hand on July 31 are $2,850. • Depreciation of office equipment for July is $400. • Accrued receptionist salary on July 31 is $140. • Rent expired during July is $2,000. • Unearned fees on July 31 are $3,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. B. Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW. 7. Prepare an adjusted trial balance. 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner’s equity, and a balance sheet for the month ended July 31, 2019. If you didn’t complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner’s equity, and a balance sheet for the month ended July 31, 2019. *If the account balance is zero (0), enter a zero (0). *Be sure to read the instructions for each financial statement carefully. 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the closing entries in the journal in CengageNOW. 10. Prepare a post-closing trial balance. I was asked to resummit the question to get the rest of the problem, part 1 was answered not the second part. Thank you!

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: Jul. 1 The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. 1 Paid three months’ rent on a lease rental contract, $6,000. 2 Paid the premiums on property and casualty insurance policies, $4,500. 4 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. 5 Purchased additional office equipment on account from Office Necessities Co., $5,100. 6 Received cash from clients on account, $12,750. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. 12 Provided services on account for the period July 1–12, $14,200. 14 Paid receptionist for two weeks’ salary, $1,500. Record the following transactions on Page 2 of the journal: Jul. 17 Received cash from cash clients for fees earned during the period July 1–17, $10,400. 18 Paid cash for supplies, $1,000. 20 Provided services on account for the period July 13–20, $9,000. 24 Received cash from cash clients for fees earned for the period July 17–24, $8,500. 26 Received cash from clients on account, $12,000. 27 Paid receptionist for two weeks’ salary, $1,500. 29 Paid telephone bill for July, $325. 31 Paid electricity bill for July, $675. 31 Received cash from cash clients for fees earned for the period July 25–31, $7,100. 31 Provided services on account for the remainder of July, $5,500. 31 Jolene withdrew $20,000 for personal use. Required: 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 2. Post the July transactions. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. B. Add the appropriate posting reference to the journal in CengageNOW. 3. Prepare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). • Insurance expired during July is $375. • Supplies on hand on July 31 are $2,850. • Depreciation of office equipment for July is $400. • Accrued receptionist salary on July 31 is $140. • Rent expired during July is $2,000. • Unearned fees on July 31 are $3,000. 5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded. 6. A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. B. Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW. 7. Prepare an adjusted trial balance. 8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner’s equity, and a balance sheet for the month ended July 31, 2019. If you didn’t complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner’s equity, and a balance sheet for the month ended July 31, 2019. If the account balance is zero (0), enter a zero (0). Be sure to read the instructions for each financial statement carefully. 9. A. Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31. B. Use the spreadsheet to post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the closing entries in the journal in CengageNOW. 10. Prepare a post-closing trial balance. I was asked to resummit the question to get the rest of the problem, part 1 was answered not the second part. Thank you!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Jul.	1	The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received.
	1	Paid three months’ rent on a lease rental contract, $6,000.
	2	Paid the premiums on property and casualty insurance policies, $4,500.
	4	Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000.
	5	Purchased additional office equipment on account from Office Necessities Co., $5,100.
	6	Received cash from clients on account, $12,750.
	10	Paid cash for a newspaper advertisement, $500.
	12	Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
	12	Provided services on account for the period July 1–12, $14,200.
	14	Paid receptionist for two weeks’ salary, $1,500.

Record the following transactions on Page 2 of the journal:

Jul.	17	Received cash from cash clients for fees earned during the period July 1–17, $10,400.
	18	Paid cash for supplies, $1,000.
	20	Provided services on account for the period July 13–20, $9,000.
	24	Received cash from cash clients for fees earned for the period July 17–24, $8,500.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks’ salary, $1,500.
	29	Paid telephone bill for July, $325.
	31	Paid electricity bill for July, $675.
	31	Received cash from cash clients for fees earned for the period July 25–31, $7,100.
	31	Provided services on account for the remainder of July, $5,500.
	31	Jolene withdrew $20,000 for personal use.

Required:

Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

Post the July transactions.

Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

Add the appropriate posting reference to the journal in CengageNOW.

Prepare an unadjusted trial balance.

At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6).

•	Insurance expired during July is $375.
•	Supplies on hand on July 31 are $2,850.
•	Depreciation of office equipment for July is $400.
•	Accrued receptionist salary on July 31 is $140.
•	Rent expired during July is $2,000.
•	Unearned fees on July 31 are $3,000.

(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.

A.	Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31.
B.	Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in CengageNOW.

Prepare an adjusted trial balance.

8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement of owner’s equity, and a balance sheet for the month ended July 31, 2019. If you didn’t complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) to prepare an income statement, a statement of owner’s equity, and a balance sheet for the month ended July 31, 2019. *If the account balance is zero (0), enter a zero (0).

*Be sure to read the instructions for each financial statement carefully.

A.	Journalize the closing entries on page 4 of the journal. Closing entries are recorded on July 31.
B.	Use the spreadsheet to post the closing entries to the ledger of four-column accounts, inserting balances in the accounts affected. Add the appropriate posting reference to the closing entries in the journal in CengageNOW.

10. Prepare a post-closing trial balance.

I was asked to resummit the question to get the rest of the problem, part 1 was answered not the second part.

Thank you!

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