Jan 1. Balances from 2021 – Cash $400,000; Accounts Receivable $250,000; Supplies $205,000; Furniture and Equipment $600,000; Other Creditors $218,000; and Capital $1,237,000. Jan 2. The following assets were received from Dalton McDonald in exchange for capital in the company: cash - $200,000, accounts receivable - $61,000, supplies - $90,000, and furniture- $400,000.
Jan 1. Balances from 2021 – Cash $400,000;
Equipment $600,000; Other Creditors $218,000; and Capital $1,237,000.
Jan 2. The following assets were received from Dalton McDonald in exchange for capital in the company: cash -
$200,000, accounts receivable - $61,000, supplies - $90,000, and furniture- $400,000.
Feb 1. Paid fifteen (15) months’ rent on a lease rental contract, $450,000.
Mar 30. Paid the premiums on the property and peril insurance policies for thirteen (13) months, $100,000.
April 4. Received cash from clients as an advance payment for services to be provided in the coming months,
$350,000.
May 5. Purchased additional equipment on account from Magic Trucking, $120,000.
June 6. Received cash from clients on account, $150,000.
June 10. Paid cash for rental of equipment, $75,000.
Aug 12. Paid Magic Trucking a portion of the debt incurred on May 5, $90,000.
Sept 12. Recorded services provided on account for the period July 1 – Sept 12, $400,000.
Sept 30. Paid part-time workers salary, $195,000.
Oct 17. Recorded cash from cash clients for fees earned during the first half of year, $390,000.
Oct 30. Paid cash for supplies, $40,000.
Oct 30. Recorded services provided on account for the period June to July, $190,000.
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Nov 24. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $310,000.
Nov 25. Received cash from clients on account, $250,000.
Nov 27. Paid part-time workers for salary $195,000.
Dec 29. Paid telephone bill for the year 2022 $140,000.
Dec 30. Paid electricity bill for the year 2022 $310,000.
Dec 30. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $210,000.
Dec 30. Recorded services provided on account for October to December 2022, $150,000.
Requirement:
1. Prepare the opening journal entries and 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 Furniture and Equipment
21 Other Creditors
22 Salaries Payable
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23 Unearned Fees
31 Capital Stock
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Insurance Expense
55 Utilities Expense
56 Equipment Rental Expense
57 Income Summary
2.
3. Prepare a
4. The company presented the following adjustments and required you to preparing the
general journal (Narration required for each
i. Insurance expired during 2022, $95,000.
ii. Supplies on hand on December 31, 2022, $35,000.
iii. Unpaid salary on December 31, 2022, $195,000
iv. Rent not expired on December 31, 2022, $90,000
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v. Unearned fees on December 31, 2022, $50,000.
5. Post the adjusting entries to their respective ledger accounts already started in requirement # 2.
6. Prepare the adjusted trial balance.
7. Prepare all three 2022 financial statements for presentation to Mr. McDonald
8. Journalize the closing entries and balance off the ledger accounts including the income summary account.
9. Prepare the post-closing trial balance.
ONLY ANSWER QUESTIONS 8 & 9
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