Module 5 Assignment Accounting

Start by reading and following these instructions:

1. Quickly skim the questions or assignment below and the assignment rubric to help you focus.

2. Read the required chapter(s) of the textbook. ??Some answers may require you to do additional research on the Internet or in other reference sources. ??Choose your sources carefully.

3. Consider the discussion and the any insights you gained from it.

4. Produce the Assignment submission in a single Microsoft Word or Open Office document. ??Be sure to cite your sources, use APA style as required, check your spelling.

Assignment:

1. Sanchez Computer Center, continued.

??At the end of September, Tony took a complete inventory of his supplies and found the following:

  • 5 dozen ??” screws at a cost of $8.00 a dozen

  • 2 dozen ??” screws at a cost of $5.00 a dozen

  • 2 cartons of computer inventory paper at a cost of $14 a carton

  • 3 feet of coaxial cable at a cost of $4.00 per foot

After speaking to his accountant, he found that a reasonable depreciation amount for each of his long-term assets is as follows:

  • Computer purchased July 5, 201X Depreciation $33 a month

  • Office equipment purchased July 17, 201X Depreciation $10 a month

  • Computer workstations purchased Sept. 17, 201X Depreciation $20 a month

Tony uses the straight-line method of depreciation and declares no salvage value for any of the assets. If any long-term asset is purchased in the ???rst 15 days of the month, he will charge depreciation for the full month. If an asset is purchased on the 16th of the month, or later, he will not charge depreciation in the month it was purchased.

August and September???s rent has now expired.

Tasks

Use your trial balance from the completed problem previously and the adjusting information given here to complete the worksheet for the three months ended September 30, 201X. From the worksheets, prepare the financial statements.

Tony decided to end the Sanchez Computer Center???s ???rst year as of September 30, 201X. Following is an updated chart of accounts.

Chart of Accounts

Assets????????????????????????????????????????????????????????????????????????????????????????????????????????Revenue

1000 Cash ???????????????????????????????????????????????????????????????????????????????????????? 4000 Service Revenue

1020 Accounts Receivable ??????????????????????????????????????Expenses

1025 Prepaid Rent ?????????????????????????????????????????????????????????????? 5010 Advertising Expense

1030 Supplies ???????????????????????????????????????????????????????????????????????????? 5020 Rent Expense

1080 Computer Shop Equipment ?????????????????? 5030 Utilities Expense

1081 Accum. Depr. C. S. Equip. ???????????????????? 5040 Phone Expense

1090 Office Equipment ???????????????????????????????????????????????? 5050 Supplies Expense

1091 Accum. Depr. Office Equip. ???????????????? 5060 Insurance Expense

Liabilities???????????????????????????????????????????????????????????????????????????????????????????? 5070 ?????????? Postage Expense

2000 Accounts Payable???????????????????????????????????????????????? 5080 Depr. Exp. C. S. Equip.

Owner???s Equity?????????????????????????????????????????????????????????????????????????? 5090 Depr. Exp. Office Equip.

3000 T. Freedman, Capital??????????????????????????????????????

3010 T. Freedman, Withdrawals????????????????????????

3020 Income Summary??????????????????????????????????????????????????

??

Complete the following:

a. Journalize the adjusting entries.

b. Post the adjusting entries to the ledger.

c. Journalize the closing entries.

d. Post the closing entries to the ledger.

e. Prepare a post-closing trial balance.

??

2. As the bookkeeper of Parker???s Plowing, you have been asked to complete the entire accounting cycle for Parker from the following information.

??201X

Jan. 1?????? Parker invested $14,000 cash and $9,000 worth of snow equipment into the plowing company.

Jan. 1?????? Paid rent for five months in advance for garage space, $3,500.

Jan. 4?????? Purchased office equipment on account from Liliis Corp., $12,600.

Jan. 6?????? Purchased snow supplies for $500 cash.

Jan. 8?????? Collected $15,000 from plowing local shopping centers.

Jan. 12?? Parker Muroney withdrew $5,000 from the business for his own personal use.

Jan. 20?? Plowed Holiday Co. parking lots, payment not to be received until March, $7,000.

Jan. 26?? Paid salaries to employees, $1,400.

Jan. 28?? Paid Liliis Corp. one-half amount owed for office equipment.

Jan. 29?? Advertising bill received from Carter Co. but will not be paid until March, $600.

Jan. 30?? Paid telephone bill, $200.

Use the following chart of accounts.

Chart of Accounts

Assets????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Owner Equity

111???? Cash ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 311?? Parker Muroney, Capital

112???? Accounts Receivable ???????????????????????????????????????????????????????????????????????? 312?? Parker Muroney, Withdrawals

114???? Prepaid Rent ?????????????????????????????????????????????????????????????????????????????????????????????????? 313?? Income Summary

115???? Snow Supplies ????????????????????????????????????????????????????????????????????????????????????????????????Revenue

121???? Office Equipment ???????????????????????????????????????????????????????????????????????????????????? 411?? Plowing Fees

122???? Accumulated Depreciation, Office Equipment????Expenses

123???? Snow Equipment???????????????????????????????????????????????????????????????????????????????????????? 511?? Salary Expense

124???? Accumulated Depreciation, Snow Equipment 512???????????? Advertising Expense

Liabilities???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 513 Telephone Expense

211???? Accounts Payable???????????????????????????????????????????????????????????????????????????????????? 514?? Rent Expense

212???? Salaries Payable???????????????????????????????????????????????????????????????????????????????????????? 515?? Snow Supplies Expense

???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 516?? Depreciation Expense, Office Equipment

???????????????? ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 517?? Depreciation Expense, Snow Equipment

???????????????????????????????????????????????????? ??

From the following transactions as well as additional data, please complete the entire accounting cycle for Parker???s Plowing (use the chart of accounts above) for 201X.

Jan. 1?? Parker invested $10,000 cash and $12,000 worth of snow equipment into the plowing company.

Jan. 1?? Paid rent for six months in advance for garage space, $6,000.

Jan. 4?? Purchased office equipment on account from Lumen Corp., $12,600.

Jan. 6?? Purchased snow supplies for $800 cash.

Jan. 8?? Collected $14,000 from plowing local shopping centers.

Jan. 12?????????? Parker Muroney withdrew $4,000 from the business for his own personal use.

Jan. 20?????????? Plowed Alton Co. parking lots, payment not to be received until May, $1,500.

Jan. 26?????????? Paid salaries to employees, $1,900.

Jan. 28?????????? Paid Lumen Corp. one-half amount owed for office equipment.

Jan. 29?????????? Advertising bill received from Washington Co. but will not be paid until May, $700.

Jan. 30 Paid telephone bill, $130.

Adjustment Data

a. Snow supplies on hand, $700.

b. Rent expired, $1,000.

c. Depreciation on office equipment, $210: ($12,600/5 yr = $2,520/12 mo. = $210).

d. Depreciation on snow equipment, $200: ($12,000/5 yr = $2,400/12 mo. = $200).

e. Accrued salaries, $380.

??

3. Todd Silver is the purchasing agent for Moore Co. One of his suppliers, Gem Co., offers Todd a free vacation to France if he buys at least 75% of Moore???s supplies from Gem Co. Todd, who is angry because Moore Co. has not given him a raise in over a year, is considering the offer. Write your recommendation to Todd.

??

4. Using the trial balance in Figure 18, and adjustment data of Kyler???s Moving Co., prepare

a. A worksheet for the month of January.

b. An income statement for January, a statement of owner???s equity for January, and a balance sheet as of January 31, 201X.

??Adjustment Data to Update Trial Balance

??a. Insurance expired, $450.

??b. Moving supplies on hand, $400.

??c. Depreciation on moving truck, $350.

??d. Wages earned but unpaid, $180.

??

Kyler???s Moving Co.

Trial Balance

January 31, 201X

?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Debits ???????????????????????????????????????? Credits

A. Cash???????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 11,000.00

B. ?????????????????????????????????????????????????????????????????????????????????????????????????????????? Prepaid Insurance?????????????????????????????? 1,800.00

C. ?????????????????????????????????????????????????????????????????????????????????????????????????????????????? Moving Supplies ???????????????????????????? 1,000.00

D. ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Moving Truck?????????????????????????? 16,000.00

E. Accumulated Depreciation, Moving Truck?????????????????????????????????????????????????????????????? 5,500.00

F. Accounts Payable?????????????????????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????? 2,700.00

G. K. Hilton, Capital ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??19,228.00

H. K. Hilton, Withdrawal ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??1,300.00

I. ?? Revenue from Moving ???????????????????????????????????????????????????????????????????????????????????????????? ?????????????????????????????? 8,300.00

J. Wages Expense?????????????????????????????????????????????????????????????????????????????????????? 3,150.00

K. ??Rent Expense ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??775.00

L. Advertising Expense?????????????????????????????????????????????????????????????????????????????? 703.00

Totals ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ??35,728.00 ???????????????????????? 35,728.00

??

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  • September 4, 2017
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