Operated a part-time consulting business

Assignment Help Accounting Basics

Reference no: EM131124978

Group Project

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2015, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting Company, on a full-time basis. RosebudConsulting entered into the following transactions during April

1. The following assets were received from Jeff Horton: cash, $20,000 ; accounts receivable, $14,700; supplies, $3,300; and office equipment, $12,000. All these assets were in return for Capital stock in the company.

1. Paid three months' rent on a lease rental contract, $6,000.

2. Paid the annual premiums on property and casualty insurance policies, $4,200.

4. Received cash from clients as an advance payment of fees for services to be provided $9,400.

5. Purchased additional office equipment on account from Smith Office Supply Co., $8,000.

6. Received cash from clients on account, $11,700.

10. Paid cash for a newspaper advertisement, $350.

12. Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.

12. Recorded services provided on account $21,900.

14. Paid receptionist for two weeks' salary, $1,650.

17. Received cash from clients for services provided $6,600.

18. Paid cash for supplies, $725.

20. Provided services on account $16,800.

24. Received cash fromclients for services provided $4,450.

26. Received cash from clients on account, $26,500.

27. Paid receptionist for two weeks' salary, $1,650.

29. Paid telephone bill for April, $540.

30. Paid electricity bill for April, $760.

30. Received cash from clients for services provided $5,160.

30. Recorded services provided on account for clients $2,590.

30. Paid dividends $18,000

Instructions

1. Prepare Journal Entries for the transactions above.

2. Post them to the respective ledgers. Prepare each ledger using the EXCEL spreadsheet.

Assign a chart of account number for each ledger.

3. Prepare an Unadjusted Trial Balance.

4. Post the unadjusted balances on a worksheet.

5. Prepare adjusting journal entries on April 30 based on the information below:

6. a. Insurance expired during April is $350.

b. Supplies on hand on April 30 are $1,225.

c. Depreciation of office equipment for April is $400.

d. Accrued receptionist salary on April 30 is $275.

e. Rent expired during April is $2,000.

f. Unearned fees on April 30 are $2,350.

7. Post the adjusting journal entries in the worksheet as well as your ledgers.

8. Complete the worksheet and your ledgers.

9. Prepare Adjusted Trial Balance

10. Prepare Financial statements

11. Prepare closing journal entries.

Reference no: EM131124978

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