Reference no: EM132264052
Assignment: Directions: Complete the entire accounting cycle for Milton Company. The nine steps are listed below. Steps 1-3 take place daily. These three steps should be repeated, in order, each time a transaction takes place during the period.
Steps 4-9 take place at the end of the period. These steps should be completed, in order after the period is over.
Daily
Step 1: Analyze transactions
Step 2: Journalize
Step 3: Post
End of Period
Step 4: Unadjusted trial balance
Step 5: Adjusting entries
Step 6: Adjusted trial balance
Step 7: Financial Statements
Step 8: Closing entries
Step 9: Post-closing trial balance
The working papers for this problem begin on the next page.
MILTON COMPANY
On April 1, John Milton opened Milton Company. The company provides services to a variety of clients. The company was organized as a corporation and has a monthly accounting period. The following transactions occurred during April.
Apr.1
Apr.1 Apr.
Apr.4
Apr.7
Apr.14 Apr. 24
Apr. 28 Apr. 30
Apr. 30 Milton invested $50,000 cash in the company in exchange for its common stock.
The company paid $1,500 cash to rent office space for April.
The company paid $720 cash for the premium on a six-month insurance policy.
Coverage begins on April 1.
The company performed services for a client and received $3,800 cash.
The company purchased $1,780 of supplies on account.
The company paid $980 cash for salary earned by an employee.
The company performed services for a client and received $5,400 cash.
The company paid $980 cash for salary earned by an employee.
The company paid $480 cash for this month's utility bill. The company paid $900 cash in dividends.
The company's chart of accounts follows:
|
ASSETS
Cash
Supplies
Prepaid Insurance
LIABILITIES
Accounts Payable Salary Payable
EQUITY
Common Stock
Retained Earnings
DIVIDENDS
Dividends
|
REVENUES
Service Revenue
EXPENSES
Salary Expense
Rent Expense
Supplies Expense Utilities Expense insurance Expense
CLEARING
Income Summary
|
Adjustment Data
1. As of April 30, $120 of insurance coverage has expired.
2. As of April 30, the company has $849 of supplies remaining.
3. As of April 30, the company has incurred $140 of unpaid and unrecorded salary.
Information related to above question is enclosed below:
Attachment:- MiltonCorpcycleproblem.rar