Full Accounting Cycle Project Scenario: On August 1, 2022, the following were the account balances of Beam's Repair Services. Account Balances for Beam's Repair Services Debit $ 6,040 Accumulated Depreciation-Equipment 2,910 4,000 1,030 10,000 Cash Accounts Receivable Notes Receivable Supplies Equipment Aug. 1 Transactions: During August, the following summary transactions were completed. 3 Aug. 1 $23,980 3 5 Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Transactions: During August, the following summary transactions were completed. 10 Credit 600 2,300 1,260 1,420 12,000 6,400 $23,980 Transactions Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Paid August rent $380. $ Transactions Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Purchased store equipment on account $2,000. Paid creditors $2,000 of accounts payable due. Paid August rent $380. Received $1,200 cash from customers in payment on account. Paid $3,120 for salaries due to employees, of which $1,700 is for August and $1,420 is for July salaries payable. Received $2,800 cash for services performed in August. 12 15 20 22 Purchased supplies on account $800. 25 Paid $2,900 cash for employees' salaries. 27 Billed customers $3,760 for services performed. 29 Received $780 from customers for services to be performed in the future. Adjustment data: 1. A count shows supplies on hand of $960. 2. Accrued but unpaid employees' salaries are $1,540. 3. Depreciation on equipment for the month is $320. 4. Services were performed to satisfy $800 of unearned service revenue. 5. One month's worth of advertising services has been received. 6. One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate.
Full Accounting Cycle Project Scenario: On August 1, 2022, the following were the account balances of Beam's Repair Services. Account Balances for Beam's Repair Services Debit $ 6,040 Accumulated Depreciation-Equipment 2,910 4,000 1,030 10,000 Cash Accounts Receivable Notes Receivable Supplies Equipment Aug. 1 Transactions: During August, the following summary transactions were completed. 3 Aug. 1 $23,980 3 5 Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Transactions: During August, the following summary transactions were completed. 10 Credit 600 2,300 1,260 1,420 12,000 6,400 $23,980 Transactions Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Paid August rent $380. $ Transactions Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Purchased store equipment on account $2,000. Paid creditors $2,000 of accounts payable due. Paid August rent $380. Received $1,200 cash from customers in payment on account. Paid $3,120 for salaries due to employees, of which $1,700 is for August and $1,420 is for July salaries payable. Received $2,800 cash for services performed in August. 12 15 20 22 Purchased supplies on account $800. 25 Paid $2,900 cash for employees' salaries. 27 Billed customers $3,760 for services performed. 29 Received $780 from customers for services to be performed in the future. Adjustment data: 1. A count shows supplies on hand of $960. 2. Accrued but unpaid employees' salaries are $1,540. 3. Depreciation on equipment for the month is $320. 4. Services were performed to satisfy $800 of unearned service revenue. 5. One month's worth of advertising services has been received. 6. One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Full Accounting Cycle Project
Scenario:
On August 1, 2022, the following were the account balances of Beam's Repair Services.
Account Balances for Beam's Repair Services
Debit
Credit
$ 6,040 Accumulated Depreciation-Equipment $ 600
2,910
Accounts Payable
2,300
4,000
Unearned Service Revenue
1,260
1,030
Salaries and Wages Payable
1,420
10,000
Common Stock
12,000
Retained Earnings
6,400
$23,980
Cash
Accounts Receivable
Notes Receivable
Supplies
Equipment
Transactions:
During August, the following summary transactions were completed.
Aug. 1
3
Aug. 1
$23,980
Transactions:
During August, the following summary transactions were completed.
3
5
10
Transactions
Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with
newspapers delivered during August and September.
Paid August rent $380.
Transactions
Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with
newspapers delivered during August and September.
Paid August rent $380.
Received $1,200 cash from customers in payment on account.
Paid $3,120 for salaries due to employees, of which $1,700 is for August and $1,420 is for July
salaries payable.
Received $2,800 cash for services performed in August.
12
15 Purchased store equipment on account $2,000.
20
Paid creditors $2,000 of accounts payable due.
22 Purchased supplies on account $800.
25
Paid $2,900 cash for employees' salaries.
27
Billed customers $3,760 for services performed.
29 Received $780 from customers for services to be performed in the future.
Adjustment data:
1. A count shows supplies on hand of $960.
2. Accrued but unpaid employees' salaries are $1,540.
3. Depreciation on equipment for the month is $320.
4. Services were performed to satisfy $800 of unearned service revenue.
5. One month's worth of advertising services has been received.
6. One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual
interest rate.
To-Do:
Transcribed Image Text:To-Do:
A. Enter the August 1 balances in the ledger accounts.
(Use T-accounts.) **Recommended turn-in
point #1**
B. Journalize the August transactions.
C. Post to the ledger accounts. The chart of accounts
includes Prepaid Advertising, Interest Receivable,
Service Revenue, Interest Revenue, Advertising
Expense, Depreciation Expense, Supplies Expense,
Salaries and Wages Expense, and Rent Expense.
D. Prepare a trial balance as of August 31.
**Recommended turn-in point #2**
E. Journalize and post adjusting entries.
F. Prepare an adjusted trial balance.
**Recommended turn-in point #3**
G. Prepare an income statement and a retained
earnings statement for August and a classified
balance sheet on August 31. **Recommended
turn-in point #4**
H. Journalize and post-closing entries and complete
the closing process.
I. Prepare a post-closing trial balance as of August
31. **Recommended turn-in point #5**
Due to the compounding nature of the to-do list, I
highly recommend turning this project in multiple
times. This will ensure you are on the right track
before getting too far into the project.
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