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.)Note: Scroll down to access pages 2 through 4 of the journal.PAGE 1 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 PAGE 2 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 6. a. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31.PAGE 3 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 Adjusting Entries 2 3 4 5 6 7 8 9 10 11 12 13 9. a. Journalize the closing entries on page 4 of the journal.PAGE 4 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 Closing Entries 2 3 4 5 6 7 8 9 10 11 6.A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. Refer to the Chart of Accounts forexact wording of account titles.B. Post the adjusting entries, inserting balances in the accounts affected.7. Prepare an adjusted trial balance.8.A. Prepare an income statement for the month ended July 31, 20Y2. Be sure to complete the statement heading. If a net loss has beenincurred, enter that amount as a negative number using a minus sign. Refer to the Accounts, Labels and Amount Descriptions provided forthe exact wording of the answer choices for text entries. You will not need to enter colons (:) on the income statement.B. Prepare a statement of stockholders' equity for the month ended July 31, 20Y2. Be sure to complete the statement heading. Negativeamount should be indicated by the minus sign. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording ofthe answer choices for text entries. If an amount is zero, enter "O".C. Prepare a balance sheet as of July 31, 20Y2. Be sure to complete the statement heading. Fixed assets must be entered in orderaccording to account number. Refer to the Accounts, Labels and Amount Descriptions provided for the exact wording of the answerchoices for text entries. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert wherenecessary. Negative amount should be indicated by the minus sign.9. A. Journalize the closing entries on page 4 of the journal. Refer to the Chart of Accounts for exact wording of account titles.B. Post the closing entries, inserting balances in the accounts affected. Leave the ITEM column BLANK for each row. If the account balanceis zero (0) after closing entries are posted, enter a zero (0) in the account's normal balance column.10. Prepare a post-closing trial balance. InstructionsFor the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during July:Jul.1The following assets were received from Steffy Lopez in exchange for common stock: cash, $12,500;accounts receivable, $20,800; supplies, $3,100; and office equipment, $7,500. There were no liabilitiesreceived.1Paid two months' rent on a lease rental contract, $4,800.2Paid the premiums on property and casualty insurance policies, $4,620.4Received cash from clients as an advance payment for services to be provided, and recorded it asunearned fees, $5,000.Purchased additional office equipment on account from Office Station Co., $6,500.6Received cash from clients on account, $15,100.10Paid cash for a newspaper advertisement, $500.12Paid Office Station Co. for part of the debt incurred on July 5, $5,200.12Recorded services provided on account for the period July 1-12, $13,300.14Paid receptionist for two weeks' salary, $1,700.Record the following transactions on Page 2 of the journal:Jul.17Recorded cash from cash clients for fees earned during the period July 1-17, $9,450.18Paid cash for supplies, $600.20Recorded services provided on account for the period July 13-20, $6,650.24Recorded cash from cash clients for fees earned for the period July 17-24, $5,000.26Received cash from clients on account, $12,000.27Paid receptionist for two weeks' salary, $1,700.29Paid telephone bill for July, $300.31Paid electricity bill for July, $675.31Recorded cash from cash clients for fees earned for the period July 25-31, $5,400.31Recorded services provided on account for the remainder of July, $3,000.31Paid dividends, $12,500.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 bedebited and credited. (Do not insert the account numbers in the journal at this time.)2.Post the journal to a ledger of four-column accounts. Add the appropriate posting reference to the journal.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).A. Insurance expired during July is $385.B. Supplies on hand on July 31 are $1,550.C. Depreciation of office equipment for July is $750.D. Accrued receptionist salary on July 31 is $170.E. Rent expired during July is $2,400.F. Unearned fees earned on July 31, $2,750.5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the worksheet.

A journal entry is made to record the financial transaction in the books of accounts.

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time basis. Diamond entered into the following transactions during J Ju. 1 The following assets were received from Steffy Lopez in exchange for common stock: cash, $12,500; accounts receivable, S20,800; supplies, $3,100; and office equipment, $7,500. There were no liabilities received. 1 Paid two months' rent on a lease rental contract, $4,800. Paid the premiums on property and casualty insurance policies, $4,620. 4 Received cash from clients as an advance payment for services to be provided, and recorded it as unearmed fees, $5,000. 5 Purchased additional office equipment on account from Office Station Co., $6,500. 6 Received cash from clients on account, $15,100. 10 Paid cash for a newspaper advertisement, $500. 12 Paid Office Station Co. for part of the debt incurred on July 5, $5,200. 12 Recorded services provided on account for the period July 1-12, S13,300. 14 Paid receptionist for two weeks'salary, $1,700. Record the following transactions on Page 2 of the jounal: Jul. 17 Recorded cash from cash clients for fees earned during the period July 1-17, $9,450. 18 Paid cash for supplies, $600. 20 Recorded services provided on account for the period July 13-20, $6,650. 24 Recorded cash from cash clients for fees earned the period July 17-24, $5,000.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q