For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $120. Paid Payne Company a portion of the debt incurred on September 5, $800. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, $400. Recorded cash from cash clients for fees earned during the first half of September, $2,100. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, $400. Paid telephone bill for September, $130. Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. Recorded services provided on account for the remainder of September, $500. Sep 9 Salary Expense Dr. 400 Cash Cr. 400 (being Salary paid) Sep 10 Cash Dr. 2,100 Fee Earned Cr. 2,100 (being Fee received for services rendered recorded) Sep 11 Supplies Dr. 750 Cash Cr. 750 (being amount paid to supplies) Sep 12 Accounts Receivable Dr. 1,100 Fee Earned Cr. 1,100 (being Fee receivable for services rendered recorded) Sep 13 Cash Dr. 1,850 Fees earned Cr. 1,850 (being Cash receipts received for services rendered) Sep 14 Cash Dr. 1,300 Accounts Receivable Cr. 1,300 (being Fee received from clients for services rendered recorded) Sep 15 Salary Expense Dr. 400 Cash Cr. 400 (being Salary paid) Sep 16 Miscellaneous Expense Dr. 130 Cash Cr. 130 (being telephone expenses paid) Sep 17 Miscellaneous Expenses Dr. 200 Cash Cr. 200 (being utility expenses paid) Sep 18 Cash Dr. 1,050 Fees earned Cr. 1,050 (being Cash receipts received for services rendered) Sep 19 Accounts Receivable dr. 500 Fees Earned Cr. 500 (being Fee receivable for services rendered recorded) Requirement: 1. Post the journal entries to their respective ledger accounts. 2. Prepare a trial balance based on the balances derived after completing requirement #2. 3. The company presented the following adjustments and require you to preparing the adjusting entries in the general journal (Narration required for each journal entry): Insurance expired during September, $125. Supplies on hand on September 30, $1,250. Accrued receptionist salary on September 30, $120 Rent expired during September, $800. Unearned fees on September 30 are $1,200. 4. Post the adjusting entries to their respective ledger accounts already started in requirement # 2. 5. Prepare the adjusted trial balance. 6. Prepare the financial statements for the month of September for presentation to Angela Smith. 7. Journalize the closing entries and balance off the ledger accounts. 8. Prepare the post-closing trial balance.

For the past several years, Angela Smith operated a part-time consulting business from her home. As of September 1, 2020, Angela decided to move to rented quarters and to operate the business on a full-time basis. She has registered the business as Interactive Consulting Ltd but has no prior knowledge of accounting and has approached a member of your group for advice. The company entered the following transactions during September: Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received. Paid three (3) months rent on a lease rental contract, $3,600. Paid the premiums on the property and peril insurance policies, $1,500. Received cash from clients as an advance payment for services to be provided in the coming months, $3,500. Purchased additional office equipment on account from Payne Company, $1,800. Received cash from clients on account, $800. Paid cash for newspaper advertisement, $120. Paid Payne Company a portion of the debt incurred on September 5, $800. Recorded services provided on account for the period September 1 -12, $1,200. Paid part-time receptionist for two weeks’ salary, $400. Recorded cash from cash clients for fees earned during the first half of September, $2,100. Paid cash for supplies, $750. Recorded services provided on account for the period September 13-20, $1,100. Recorded cash from cash clients for fees earned for the period September 17-24, $1,850. Received cash from clients on account, $1,300. Paid part-time receptionist for two weeks salary, $400. Paid telephone bill for September, $130. Paid electricity bill for September, $200. Recorded cash from cash clients for fees earned for the period September 25-30, $1,050. Recorded services provided on account for the remainder of September, $500. Sep 9 Salary Expense Dr. 400 Cash Cr. 400 (being Salary paid) Sep 10 Cash Dr. 2,100 Fee Earned Cr. 2,100 (being Fee received for services rendered recorded) Sep 11 Supplies Dr. 750 Cash Cr. 750 (being amount paid to supplies) Sep 12 Accounts Receivable Dr. 1,100 Fee Earned Cr. 1,100 (being Fee receivable for services rendered recorded) Sep 13 Cash Dr. 1,850 Fees earned Cr. 1,850 (being Cash receipts received for services rendered) Sep 14 Cash Dr. 1,300 Accounts Receivable Cr. 1,300 (being Fee received from clients for services rendered recorded) Sep 15 Salary Expense Dr. 400 Cash Cr. 400 (being Salary paid) Sep 16 Miscellaneous Expense Dr. 130 Cash Cr. 130 (being telephone expenses paid) Sep 17 Miscellaneous Expenses Dr. 200 Cash Cr. 200 (being utility expenses paid) Sep 18 Cash Dr. 1,050 Fees earned Cr. 1,050 (being Cash receipts received for services rendered) Sep 19 Accounts Receivable dr. 500 Fees Earned Cr. 500 (being Fee receivable for services rendered recorded) Requirement: 1. Post the journal entries to their respective ledger accounts. 2. Prepare a trial balance based on the balances derived after completing requirement #2. 3. The company presented the following adjustments and require you to preparing the adjusting entries in the general journal (Narration required for each journal entry): Insurance expired during September, $125. Supplies on hand on September 30, $1,250. Accrued receptionist salary on September 30, $120 Rent expired during September, $800. Unearned fees on September 30 are $1,200. 4. Post the adjusting entries to their respective ledger accounts already started in requirement # 2. 5. Prepare the adjusted trial balance. 6. Prepare the financial statements for the month of September for presentation to Angela Smith. 7. Journalize the closing entries and balance off the ledger accounts. 8. Prepare the post-closing trial balance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sept 1. The following assets were received from Angela Smith in exchange for capital of Interactive Consulting Ltd: cash - $7,050, accounts receivable - $1,500, supplies - $1,250, and office equipment - $7,200. There were no liabilities received.

Paid three (3) months rent on a lease rental contract, $3,600.
Paid the premiums on the property and peril insurance policies, $1,500.
Received cash from clients as an advance payment for services to be provided in the coming months, $3,500.
Purchased additional office equipment on account from Payne Company, $1,800.
Received cash from clients on account, $800.
Paid cash for newspaper advertisement, $120.
Paid Payne Company a portion of the debt incurred on September 5, $800.
Recorded services provided on account for the period September 1 -12, $1,200.
Paid part-time receptionist for two weeks’ salary, $400.
Recorded cash from cash clients for fees earned during the first half of September, $2,100.
Paid cash for supplies, $750.
Recorded services provided on account for the period September 13-20, $1,100.
Recorded cash from cash clients for fees earned for the period September 17-24, $1,850.
Received cash from clients on account, $1,300.
Paid part-time receptionist for two weeks salary, $400.
Paid telephone bill for September, $130.
Paid electricity bill for September, $200.
Recorded cash from cash clients for fees earned for the period September 25-30, $1,050.
Recorded services provided on account for the remainder of September, $500.

Sep 9	Salary Expense Dr.	400
	Cash Cr.		400
	(being Salary paid)
Sep 10	Cash Dr.	2,100
	Fee Earned Cr.		2,100
	(being Fee received for services rendered recorded)
Sep 11	Supplies Dr.	750
	Cash Cr.		750
	(being amount paid to supplies)
Sep 12	Accounts Receivable Dr.	1,100
	Fee Earned Cr.		1,100
	(being Fee receivable for services rendered recorded)
Sep 13	Cash Dr.	1,850
	Fees earned Cr.		1,850
	(being Cash receipts received for services rendered)
Sep 14	Cash Dr.	1,300
	Accounts Receivable Cr.		1,300
	(being Fee received from clients for services rendered recorded)
Sep 15	Salary Expense Dr.	400
	Cash Cr.		400
	(being Salary paid)
Sep 16	Miscellaneous Expense Dr.	130
	Cash Cr.		130
	(being telephone expenses paid)
Sep 17	Miscellaneous Expenses Dr.	200
	Cash Cr.		200
	(being utility expenses paid)
Sep 18	Cash Dr.	1,050
	Fees earned Cr.		1,050
	(being Cash receipts received for services rendered)
Sep 19	Accounts Receivable dr.	500
	Fees Earned Cr.		500
	(being Fee receivable for services rendered recorded)

Requirement:

1. Post the journal entries to their respective ledger accounts.

2. Prepare a trial balance based on the balances derived after completing requirement #2.

3. The company presented the following adjustments and require you to preparing the adjusting entries in the general journal (Narration required for each journal entry):

Insurance expired during September, $125.
Supplies on hand on September 30, $1,250.

Accrued receptionist salary on September 30, $120

Rent expired during September, $800.
Unearned fees on September 30 are $1,200.

4. Post the adjusting entries to their respective ledger accounts already started in requirement # 2.

5. Prepare the adjusted trial balance.

6. Prepare the financial statements for the month of September for presentation to Angela Smith.

7. Journalize the closing entries and balance off the ledger accounts.

8. Prepare the post-closing trial balance.

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