
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
can you help me on how to do my assignment?

Transcribed Image Text:ACCOUNTING CYCLE PRACTICE PROBLEM
The following practice problem is an example of the material that will be tested on the
competency exam. The actual exam is not as long as the practice problem and will not have
you completing all parts below, but this comprehensive practice problem will prepare you for the
Accounting Process Cycle problem in the competency exam. Use the information and
worksheets to practice the problem. The answers have been provided. Use the following
information and complete the instructions below:
For the past several years, John Addams has operated a part-time business from his home. As
of April 1, 2002, John decided to move to rented quarters and to operate the business, which
was to be known as Addams & Family Inc., on a full-time basis. Addams & Family entered into
the following transactions during April:
April 4 The following assets were received from John Addams: cash, $10,000; accounts
receivable, $1,500; supplies, $1,250; and office equipment, $7,500. There were no
liabilities received.
April 4 Paid three months' rent on a lease rental contract, $4,500.
April 4 Paid the premium on property and casualty insurance policies for the year, $1,800.
April 6 Received cash from clients as an advance payment for services to be provided,
$3,000.
April 7 Purchased additional office furniture on account from Morriton Company, $1,800.
April 8 Received cash from clients on account, $800.
April 11 Paid cash for newspaper advertisement, $120.
April 12 Paid Morriton Company $800 for debt incurred on April 7.
April 15 Recorded services provided on account for the period April 4-15, $2,250
April 15 Paid part-time receptionist for two weeks salary, $400.
April 15 Recorded cash from cash clients for fees earned April 4-15, $3,175.
April 18 Paid cash for supplies, $750.
April 22 Recorded services provided on account for April 18-22, $1,100.
April 22 Recorded cash from cash clients for fees earned April 18-22, $1,850.
April 25 Received cash from clients on account, $1,600.
April 27 Paid part-time receptionist for two week's salary, $400.
April 28 Paid telephone bill for April, $130.
April 29 Paid electric bill for April, $200.
April 29 Recorded cash from cash clients for fees earned April 25-29, $2,050.
April 29 Recorded services provided on account for April 25-29, $1,000.
April 29 John received $4,500 from the company as his salary.
Instructions: (The first transaction has boen recorded and posted for you).
1. Record the transactions stated above in good general journal form.
2. Post the transactions to T-accounts.
3. Record and post the following adjustments:
a. Insurance expired in April, $150.
b. Supplies on hand April 29, $1,020.
c. Depreciation for the office equipment in April, $500.
d. Accrued receptionist salary on April 30, $20.
e. Rent expired in April, $1,500.
f. Earned $2,000 of services that were previously paid for on 4/6.
5. Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet.
6. Record and post closing entries.
7. Prepare a post-closing trial balance.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Financial statements:
VIEW Step 2: (1,4 & 6 ) Record the transactions including adjusting entries and closing entries:
VIEW Step 3: (2 & 4) Post the transactions to T-accounts:
VIEW Step 4: (3) Prepare an unadjusted trial balance:
VIEW Step 5: (5) Prepare an income statement and a balance sheet:
VIEW Step 6: (7) Prepare an after-closing trial balance:
VIEW Solution
VIEW Step by stepSolved in 7 steps with 11 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the suggested order for performing tasks using the ABC system?arrow_forwardIn the image you can look at the question . Is asking me to choose the correct answer below and fill in the answer box to complete your choice . How can I solve this type of question ?arrow_forwardCAN I SEE THE MANUAL WORKING OF THE PROBLEMarrow_forward
- can you show the steps on a calculator ?arrow_forwardCan you further explain this to me to better understand the concept on what I'm supposed to do and what formulas I need to apply.arrow_forward1. What is a case and how to defining the Case and Creating Problem Statements? 2. What is Background of the Problem and Problem Statement?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education