Impression35
New member
The Accounting Cycle
Scott Sutherland bought the Emily Floor Service on
March 1. The Firms balance sheet for that date is as
follows.
Instructions:
1.Record the opening entry in a general journal.
2.Open the following general ledger accounts.
101 Cash
102 Accounts Recievable
103 Supplies
111 Service equipment.
113 Truck
201 Accounts Payable
301 Scott Sutherland, Capital
302 Scott Sutherland, Withdrawals
399 Income Summary
401 Floor Service Fees
501 Rent Expense
502 Truck Expense
503 Wages Expense
504 Telephone Expense
505 Advertising Expense
506 office Cleaning Expense
3.Post the opening entry to the ledger accounts
4.Journalize the transactions
5.post the journal entries to the ledger accounts.
6.Prepare a worksheet.
Emily Floor Service
Balance Sheet
March 1, 2011
Assets
Cash $3,500
Accounts Recievable 1,300
Supplies 1,150
Office Equipment 3,250
Service Equipment 8,800
Truck 12,000
Total Assets 30,000
Liabilities
Accounts Payable $4000.00
Owner’s Equity
Scott Sutherland, Capital $25,600
Total Liabilities’ and Owner’s Equity $30,000
7.Prepare an income statement for the month ended
March 31 of the current year.
8.Prepare a statement of owner’s equity for the month
ended March 31 of the current year.
9.Prepare a report-form balance sheet, dated March 31 of the current year.
10.Record the closing entries in the general journal.
Record these entries immediately after the last transaction journalized on March 31.
11.Post the closing entries.
12.Prepare a post closing trial balance.
Transactions
Mar.1 Paid $800 for the March rent.
Mar.2 Received $700 from Suburban Real Estate, a customer, on account. (This money is for work done in February when the previous owner was operating the business.)
Mar. 6 Bought a sander for $375 on credit from the Gray Equipment Company.
Mar. 7 Received $550 for installing linoleum.
Mar 8 Received $600 from Baldwin Securities in payment of the balance due for work done in February.
Mar 10. Paid $1,850 in wages to employees.
10 Paid $ 25 for gasoline for the truck
Mar. 12 Paid $150 for supplies
Mar 13 Received $1,750 for installing floor tiles
Mar 15 Paid $1,000 to Crown Floor Machines, a creditor, on account. (This payment is for a purchase made by the previous owner in February.
15 Scott Sutherland invested an additional $2000 in the business.
Mar. 17 Paid $175 for an office file cabinet.
Refinished floors at Ty’s Restaurant for $2,350 on credit
Mar. 19 Received $685 for repairing a floor
Mar 20 Paid $190 to the Office Maintenance company for cleaning the office.
Mar 22 Paid $ 125 for a newspaper ad.
Mar 23 Received $ 1,940 for installing floor tiles
23 paid $ 87 for the telephone bill.
Mar 24. Paid $ 2,400 to United Floor Tiles, a creditor on account for a purchase made in February
24 Paid $ 1,850 in wages to employees
Mar 26 Received $1250 for refinishing a floor
Mar 28 Paid $275 for supplies.
Mar 30 Installed floor tiles at the Fashion Boutique for $1,725 on credit.
Mar 31 Paid $42 for gasoline for the truck.
31 Scott Sutherland withdrew $700 for his personal use.
Scott Sutherland bought the Emily Floor Service on
March 1. The Firms balance sheet for that date is as
follows.
Instructions:
1.Record the opening entry in a general journal.
2.Open the following general ledger accounts.
101 Cash
102 Accounts Recievable
103 Supplies
111 Service equipment.
113 Truck
201 Accounts Payable
301 Scott Sutherland, Capital
302 Scott Sutherland, Withdrawals
399 Income Summary
401 Floor Service Fees
501 Rent Expense
502 Truck Expense
503 Wages Expense
504 Telephone Expense
505 Advertising Expense
506 office Cleaning Expense
3.Post the opening entry to the ledger accounts
4.Journalize the transactions
5.post the journal entries to the ledger accounts.
6.Prepare a worksheet.
Emily Floor Service
Balance Sheet
March 1, 2011
Assets
Cash $3,500
Accounts Recievable 1,300
Supplies 1,150
Office Equipment 3,250
Service Equipment 8,800
Truck 12,000
Total Assets 30,000
Liabilities
Accounts Payable $4000.00
Owner’s Equity
Scott Sutherland, Capital $25,600
Total Liabilities’ and Owner’s Equity $30,000
7.Prepare an income statement for the month ended
March 31 of the current year.
8.Prepare a statement of owner’s equity for the month
ended March 31 of the current year.
9.Prepare a report-form balance sheet, dated March 31 of the current year.
10.Record the closing entries in the general journal.
Record these entries immediately after the last transaction journalized on March 31.
11.Post the closing entries.
12.Prepare a post closing trial balance.
Transactions
Mar.1 Paid $800 for the March rent.
Mar.2 Received $700 from Suburban Real Estate, a customer, on account. (This money is for work done in February when the previous owner was operating the business.)
Mar. 6 Bought a sander for $375 on credit from the Gray Equipment Company.
Mar. 7 Received $550 for installing linoleum.
Mar 8 Received $600 from Baldwin Securities in payment of the balance due for work done in February.
Mar 10. Paid $1,850 in wages to employees.
10 Paid $ 25 for gasoline for the truck
Mar. 12 Paid $150 for supplies
Mar 13 Received $1,750 for installing floor tiles
Mar 15 Paid $1,000 to Crown Floor Machines, a creditor, on account. (This payment is for a purchase made by the previous owner in February.
15 Scott Sutherland invested an additional $2000 in the business.
Mar. 17 Paid $175 for an office file cabinet.
Refinished floors at Ty’s Restaurant for $2,350 on credit
Mar. 19 Received $685 for repairing a floor
Mar 20 Paid $190 to the Office Maintenance company for cleaning the office.
Mar 22 Paid $ 125 for a newspaper ad.
Mar 23 Received $ 1,940 for installing floor tiles
23 paid $ 87 for the telephone bill.
Mar 24. Paid $ 2,400 to United Floor Tiles, a creditor on account for a purchase made in February
24 Paid $ 1,850 in wages to employees
Mar 26 Received $1250 for refinishing a floor
Mar 28 Paid $275 for supplies.
Mar 30 Installed floor tiles at the Fashion Boutique for $1,725 on credit.
Mar 31 Paid $42 for gasoline for the truck.
31 Scott Sutherland withdrew $700 for his personal use.