Accounting Cycle Review Problem

Your Name: VANESSA VANN

Complete Comprehensive Problem 1 for Chapters 1-4, found on pages 239-240 of your textbook,
on the attached accounting cycle work papers (also located in Canvas under Files.) Please do
the assignment by hand (and legibly). If I cannot read your writing, I cannot grade the
assignment.
You are NOT required to complete the worksheet indicated in requirement 4.
Since you will need to upload your assignment to your ePortfolio, please make a PDF copy of the
assignment prior to submitting it in class on the due date indicated.
Good luck!

GENERAL JOURNAL
DATE

ACCOUNT TITLES AND EXPLANATION

DEBIT

CREDIT

Record Transactions, Adjusting and Closing Entries in this journal

Dec.1

Dec.1

Dec.4

Dec.12

Dec.15

Dec.18

Dec.20

Dec.22

Dec.25

Dec.27

Dec.28

Dec.29

Dec.30

Cash
Truck
Magness, Capital
Prepaid insurance
Cash
Office supplies
Cash

Record Transactions

10,000
20,000
30,000
1,000
1,000
500
500

Cash
Service revenue

2,000

Account receivable
Service revenue

2,500

Salaries expense
Cash

1,000

Cash
Service revenue

15,000

Cash
Unearned revenue
Cash
Account receivable

2,000

2,500

1,000

15,000
800
800
2,500
2,500

Fuel expense
Account payable

300

Account receivable
Service revenue

700

Rent expense
Cash
Account payable
Cash

300

700
1,600
1,600
300
300

GENERAL JOURNAL
DATE
Dec.31

Dec.31

Dec.31

Dec.31

Dec.31

Dec.31

ACCOUNT TITLES AND EXPLANATION

Adjusting Entries
Salaries expense
Salaries payable

DEBIT

CREDIT

1,000
1,000

Depreciation expense- Truck

Accumulated Depreciation-Truck

250

Insurance expense
Prepaid insurance

250

Office expense
Office supplies

400

Unearned revenue
Service revenue

300

Account receivable
Service revenue

650

250

250

400

300

650

GENERAL JOURNAL
DATE
Dec.31

Dec.31

Dec.31

Dec.31

ACCOUNT TITLES AND EXPLANATION

Closing Temporary accounts
Service revenue
Income summary
To close revenue
Income summary
Salaries expense
Depreciation expense-truck
Insurance expense
Fuel expense
Rent expense
Supplies expense
To close expense
Income summary
Magness, Capital
To close income summary
Magness, Capital
Magnessa, withdrawals
To close withdrawals

DEBIT

CREDIT

21,150
21,150

4,800
2,000
250
250
300
1,600
400

43,350
43,350

3,000
3,000

GENERAL LEDGER
Cash
Dec.1
10,000
Dec.12
2,000
Dec.20
15,000
Dec. 25
2,500
Dec.31
300

500 Dec.4
1,000
Dec.18
1,600
Dec.29
300
Dec.30
3,000
Dec.31

Bal. 23,200

Accounts Receivable
Dec.15
2,500
2,500
Dec.25
Dec.28
700
Dec.31
650

Bal. 1350

Dec.4 500

400 Dec.31

Bal. 100

Prepaid Insurance
Dec.1
1,000
250 Dec.31

Dec.1
20,000

Bal. 750

Bal. 20,000

Accounts Payable
300
Dec.27

Office Supplies

Truck

Accumulated Depreciatio
250 Dec.31

250 Bal.

Salaries Payable
1,000
Dec.31

Unearned Reven
800 Dec.22
Dec.31 300

300 Bal.

Matthews, Capital
30,000
Dec.1

30,000 Bal

1,000 Bal.

Matthews, Withdrawals
Dec.31
3,000

Bal. 3,000

500 Bal.

Income Summary
Clos.2 4,800

21,150 clos.1

16,350 Bal.

GENERAL LEDGER

Service Revenue
2,000
Dec.12
2,500
Dec.15
15,000
Dec.20
700
Dec.27
300
Dec.31
650
Dec.31
21,150 Bal.

Insurance Expense

Salaries Expense
Dec.18
1,000

Depreciation Expense Truck

Dec.31 250

Dec.31
1,000
Bal. 2,000

Dec.31 250

Dec.27 300

Rent Expense
Dec.29
1,600

Bal. 250

Bal. 300

Bal. 1,600

Supplies Expense
Dec.31 400

Bal. 400

Fuel Expense

Bal. 250

(Unadjusted) Trial Balance

Debits
Cash
Account receivable
Office supplies
Prepaid insurance
Truck
Account payable
Unearned revenue
Magness, capital
Service revenue
Salaries expense
Magness, withdrawal
Fuel expense
Rent expense
Total

Credits

22,900
700
500
1,000
20,000
300
800
30,000
20,200
1,000
3,000
300
1,600
51,000

51,000

Adjusted Trial Balance

Debits
Cash
Account receivable
Office supplies
Prepaid insurance
Truck
Accumulated Depreciation-Truck
Account payable
Salaries payable
Unearned revenue
Magness, Capital
Magness, Withdrawals
Service revenue
Salaries expense
Depreciation Expense-Truck
Insurance expense
Fuel expense
Rent expense
Supplies expense
Total

Credits

23,200
1,350
100
750
20,000
250
300
1,000
500
30,000
3,000
21,150
2,000
250
250
300
1,600
400
$53,200

$53,200

Income Statement
December 31, 2016
Revenue:
Service revenue
Expense:
Salaries expense
Rent expense
Supplies expense
Fuel expense
Depreciation expense-truck
Insurance expense
Total expense

21,150
2,000
1,600
400
300
250
250
(4,800)
$16,350

Statement of Owners Equity

December 31, 2016
Magness, Capital December 1,2016
Owner contribution
Net income for December
Owner withdrawal
Magness, Capital, December 31, 2016

0
30,000
16,350
46,350
(3000)
$43,350

Balance Sheet
December 31, 2016
Assets
Cash

23,200

Account receivable

1,350

office supplies

100

Prepaid insurance

750

Truck

20,000

Less: Accumulated depreciation-truck

Total assets

(250)
$45,150

Liabilities
Account payable

300

Salaries payable

1,000

Unearned revenue

500

Total liabilities

1,800
Owners Equity

Magness, Capital

43,350

Total liabilities and Owners equity

$45,150

Post-Closing Trial Balance

December 31, 2016
Debits
Cash
Account receivable
Office supplies
Prepaid insurance
Truck
Accumulated depreciation-truck
Account payable
Salaries payable
Unearned revenue
Magness, Capital
Total

Credits

23,200
1,350
100
750
20,000

$45,400

250
300
1,000
500
43,350
$45,400