Ralph Collins founded Collins Consignment Sales Company and the company was operated from his home. As of September 1, 2021, Collins decided to move to rented quarters and to operate the business on a full-time basis. He wishes to know how much net income the business has earned but has no prior knowledge of accounting and has approached your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Ralph in exchange for capital of Collins Consignment Sales Company: cash - $19,000, accounts receivable - $2,800, supplies - $2,050, and office equipment - $15,000. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $6,000. Paid the premiums on the property and peril insurance policies, $3,000. Received cash from clients as an advance payment for services to be provided in the coming months, $5,900. Purchased additional office equipment on account from Payne Company, $5,000. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $1,720. Paid Payne Company a portion of the debt incurred on September 5, $2,000. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, at $500 per week. Recorded cash from cash clients for fees earned during the first half of September, $3,000. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $2,100. Recorded cash from cash clients for fees earned for the period September 17-24, $4,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, at $500 per week. Paid telephone bill for September, $2,000. Paid electricity bill for September, $2,800. Recorded cash from cash clients for fees earned for the period September 25-30, $2,000. Recorded services provided on account for the remainder of September, $1,500. Requirement: Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Capital-Ralph Collins 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Advertising Expense Income Summary Post the journal entries to their respective ledger accounts. Prepare a trial balance based on the balances derived after completing requirement #2

Ralph Collins founded Collins Consignment Sales Company and the company was operated from his home. As of September 1, 2021, Collins decided to move to rented quarters and to operate the business on a full-time basis. He wishes to know how much net income the business has earned but has no prior knowledge of accounting and has approached your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Ralph in exchange for capital of Collins Consignment Sales Company: cash - $19,000, accounts receivable - $2,800, supplies - $2,050, and office equipment - $15,000. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $6,000. Paid the premiums on the property and peril insurance policies, $3,000. Received cash from clients as an advance payment for services to be provided in the coming months, $5,900. Purchased additional office equipment on account from Payne Company, $5,000. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $1,720. Paid Payne Company a portion of the debt incurred on September 5, $2,000. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, at $500 per week. Recorded cash from cash clients for fees earned during the first half of September, $3,000. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $2,100. Recorded cash from cash clients for fees earned for the period September 17-24, $4,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, at $500 per week. Paid telephone bill for September, $2,000. Paid electricity bill for September, $2,800. Recorded cash from cash clients for fees earned for the period September 25-30, $2,000. Recorded services provided on account for the remainder of September, $1,500. Requirement: Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction: Account # Account Name 11 Cash 12 Accounts Receivables 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees 31 Capital-Ralph Collins 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 54 Insurance Expense 55 Utilities Expense 56 Advertising Expense Income Summary Post the journal entries to their respective ledger accounts. Prepare a trial balance based on the balances derived after completing requirement #2

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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Sept 1. The following assets were received from Ralph in exchange for capital of Collins Consignment Sales Company: cash - $19,000, accounts receivable - $2,800, supplies - $2,050, and office equipment - $15,000. There were no liabilities received.

Paid three (3) months rent on a lease rental contract, $6,000.
Paid the premiums on the property and peril insurance policies, $3,000.
Received cash from clients as an advance payment for services to be provided in the coming months, $5,900.
Purchased additional office equipment on account from Payne Company, $5,000.
Received cash from clients on account, $800.
Paid cash for newspaper advertisement, $1,720.
Paid Payne Company a portion of the debt incurred on September 5, $2,000.
Recorded services provided on account for the period September 1 -12, $1,200.
Paid part-time receptionist for two weeks’ salary, at $500 per week.
Recorded cash from cash clients for fees earned during the first half of September, $3,000.
Paid cash for supplies, $750.
Recorded services provided on account for the period September 13-20, $2,100.
Recorded cash from cash clients for fees earned for the period September 17-24, $4,850.
Received cash from clients on account, $1,300.
Paid part-time receptionist for two weeks salary, at $500 per week.
Paid telephone bill for September, $2,000.
Paid electricity bill for September, $2,800.
Recorded cash from cash clients for fees earned for the period September 25-30, $2,000.
Recorded services provided on account for the remainder of September, $1,500.

Requirement:

Journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction:

Account #	Account Name
11	Cash
12	Accounts Receivables
14	Supplies
15	Prepaid Rent
16	Prepaid Insurance
18	Office Equipment
21	Accounts Payable
22	Salaries Payable
23	Unearned Fees
31	Capital-Ralph Collins
41	Fees Earned
51	Salary Expense
52	Rent Expense
53	Supplies Expense
54	Insurance Expense
55	Utilities Expense
56	Advertising Expense Income Summary

Post the journal entries to their respective ledger accounts.

Prepare a trial balance based on the balances derived after completing requirement #2.

The company presented the following adjustments, and you are to prepare the adjusting entries in the general journal (Narration required for each journal entry):
Insurance expired during September, $500.
Supplies on hand on September 30, $1,250.
Accrued receptionist salary on September 30, $500
Rent expired during September, $2,000.
Unearned fees on September 30 are $2,900.
Post the adjusting entries to their respective ledger accounts already started in requirement # 2.

Prepare the adjusted trial balance.

Prepare the financial statements for the month of September for presentation to Ralph Collins.

Journalize the closing entries and balance off the ledger accounts including the income summary account.

Prepare the post-closing trial balance.

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Follow-up Question

Prepare the financial statements for the month of September for presentation to Ralph Collins.

Journalize the closing entries and balance off the ledger accounts including the income summary account.

Prepare the post-closing trial balance.

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Follow-up Question

After arriving at the trial balance above, the company presented the following adjustments. These are:

Insurance expired during September $500
Supplies on hand on September 30 $1,250
Accrued receptionist salary on September 30 $500
Rent expired during September $2,000
Unearned fees on September 30 are $2,900

Prepare the adjusting entries in the general journal and post the adjusting entries to their respective ledger accounts.

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