Unit 2 And 3 Capstone Assignment Correction

Management Tools Application-Unit 2 Assignment

For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2010, Dustin decided to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into the following transactions during June:

June 1. The following assets were received from Dustin Larkin: cash, $10,000; accounts receivable, $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received.

June 1. Paid three months’ rent on a lease rental contract, $4,500.

June 2. Paid the premiums on property and casualty insurance policies, $1,800.

June 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $3,000.

June 5. Purchased additional office equipment on account from Crawford Company, $1,800.

June 6. Received cash from clients on account, $800.

June 10. Paid cash for a newspaper advertisement, $120.

June 12. Paid Crawford Company for part of the debt incurred on June 5, $800.

June 12. Recorded services provided on account for the period June 1-12, $2,250.

June 14. Paid part-time receptionist for two weeks’ salary, $400.

June 17. Recorded cash from cash clients for fees earned during the period June 1-16, $3,175.

June 18. Paid cash for supplies, $750.

June 20. Recorded services provided on account for the period June 13-20, $1,100.

June 24. Recorded cash from cash clients for fees earned for the period June 17—24, $1,850.

June 26. Received cash from clients on account, $1,600.

June 27. Paid part-time receptionist for two weeks’ salary, $400.

June 29. Paid telephone bill for June, $130.

June 30. Paid electricity bill for June, $200.

June 30. Recorded cash from cash clients for fees earned for the period June 25-30, $2,050.

June 30. Recorded services provided on account for the remainder of June, $1,000.

June 30. Dustin withdrew $4,500 for personal use.

Instructions-Use the provided Excel template to complete the following:

1. Journalize each transaction in a two-column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited.

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Rent

16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Salaries Payable

23 Unearned Fees

31 Dustin Larkin, Capital

32 Dustin Larkin, Drawing

41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

2. Post the journal to a ledger of four-column accounts.

3. Prepare a trial balance as of June 30, 2010.

Be sure and save your work, you will complete the accounting cycle in Unit 3 using the same Excel Template and information.

Unit 3 Instructions:

Management Tools Application – Unit 3 Assignment

Continue with the Assignment from Unit 2, using the same Excel Template complete the following steps:

1. Prepare the Adjusting entries A-F. a. Insurance expired during June is $150.

b. Supplies on hand on June 30 are $1,020.

c. Depreciation of office equipment for June is $500.

d. Accrued receptionist salary on June 30 is $120.

e. Rent expired during June is $1,500.

f. Unearned fees on June 30 are $2,000.

2. Prepare an income statement, a statement of owner’s equity, and a balance sheet.

3. Journalize and Post the adjusting entries.

4. Journalize and post the closing entries. (Income Summary is account #33 in the chart of accounts.)

5. Prepare a post-closing trial balance.

COMPREHENSIVE PROBLEM 1 Solution

1. and 2. JOURNAL Pages 1 and 2

Post.

Date Description Ref. Debit Credit

2003

June 1 Cash 11 10,000

Accounts Receivable 12 1,500

Supplies 14 1,250

Office Equipment 18 7,500

Dustin Larkin, Capital 31 20,250

1 Prepaid Rent 15 4,500

Cash 11 4,500

2 Prepaid Insurance 16 1,800

Cash 11 1,800

4 Cash 11 3,000

Unearned Fees 23 3,000

5 Office Equipment 18 1,800

Accounts Payable 21 1,800

6 Cash 11 800

Accounts Receivable 12 800

10 Miscellaneous Expense 59 120

Cash 11 120

12 Accounts Payable 21 800

Cash 11 800

12 Accounts Receivable 12 2,250

Fees Earned 41 2,250

14 Salary Expense 51 400

Cash 11 400

17 Cash 11 3,175

Fees Earned 41 3,175

18 Supplies 14 750

Cash 11 750

20 Accounts Receivable 12 1,100

Fees Earned 41 1,100

24 Cash 11 1,850

Fees Earned 41 1,850

Comp. Prob. 1 Continued

1. and 2. JOURNAL Pages 1 and 2

Post.

Date Description Ref. Debit Credit

2003

June 26 Cash 11 1,600

Accounts Receivable 12 1,600

27 Salary Expense 51 400

Cash 11 400

29 Miscellaneous Expense 59 130

Cash 11 130

30 Miscellaneous Expense 59 200

Cash 11 200

30 Cash 11 2,050

Fees Earned 41 2,050

30 Accounts Receivable 12 1,000

Fees Earned 41 1,000

30 Dustin Larkin, Drawing 32 4,500

Cash 11 4,500

Comp. Prob. 1 Continued

2., 5., and 6.

Cash 11

Post. Balance

Date Item Ref. Dr. Cr. Dr. Cr.

2003

June 1 1 10,000 10,000

1 1 4,500 5,500

2 1 1,800 3,700

4 1 3,000 6,700

6 1 800 7,500

10 1 120 7,380

12 1 800 6,580

14 1 400 6,180

17 2 3,175 9,355

18 2 750 8,605

24 2 1,850 10,455

26 2 1,600 12,055

27 2 400 11,655

29 2 130 11,525

30 2 200 11,325

30 2 2,050 13,375

30 2 4,500 8,875

Accounts Receivable 12

2003

June 1 1 1,500 1,500

6 1 800 700

12 1 2,250 2,950

20 2 1,100 4,050

26 2 1,600 2,450

30 2 1,000 3,450

Supplies 14

2003

June 1 1 1,250 1,250

18 2 750 2,000

30 Adjusting 3 980 1,020

Comp. Prob. 1 Continued

Prepaid Rent 15

Post. Balance

Date Item Ref. Dr. Cr. Dr. Cr.

2003

June 1 1 4,500 4,500

30 Adjusting 3 1,500 3,000

Prepaid Insurance 16

2003

June 2 1 1,800 1,800

30 Adjusting 3 150 1,650

Office Equipment 18

2003

June 1 1 7,500 7,500

5 1 1,800 9,300

Accumulated Depreciation 19

2003

June 30 Adjusting 3 500 500

Accounts Payable 21

2003

June 5 1 1,800 1,800

12 1 800 1,000

Salaries Payable 22

2003

June 30 Adjusting 3 120 120

Unearned Fees 23

2003

June 4 1 3,000 3,000

30 Adjusting 3 1,000 2,000

Comp. Prob. 1 Continued

Dustin Larkin, Capital 31

Post. Balance

Date Item Ref. Dr. Cr. Dr. Cr.

2003

June 1 1 20,250 20,250

30 Closing 4 7,925 28,175

30 Closing 4 4,500 23,675

Dustin Larkin, Drawing 32

2003

June 30 2 4,500 4,500

30 Closing 4 4,500 — —

Income Summary 33

2003

June 30 Closing 4 12,425 12,425

30 Closing 4 4,500 7,925

30 Closing 4 7,925 — —

Fees Earned 41

2003

June 12 1 2,250 2,250

17 2 3,175 5,425

20 2 1,100 6,525

24 2 1,850 8,375

30 2 2,050 10,425

30 2 1,000 11,425

30 Adjusting 3 1,000 12,425

30 Closing 4 12,425 — —

Salary Expense 51

2003

June 14 1 400 400

27 2 400 800

30 Adjusting 3 120 920

30 Closing 4 920 — —

Comp. Prob. 1 Continued

Rent Expense 52

Post. Balance

Date Item Ref. Dr. Cr. Dr. Cr.

2003

June 30 Adjusting 3 1,500 1,500

30 Closing 4 1,500 — —

Supplies Expense 53

2003

June 30 Adjusting 3 980 980

30 Closing 4 980 — —

Depreciation Expense 54

2003

June 30 Adjusting 3 500 500

30 Closing 4 500 — —

Insurance Expense 55

2003

June 30 Adjusting 3 150 150

30 Closing 4 150 — —

Miscellaneous Expense 59

2003

June 10 1 120 120

29 2 130 250

30 2 200 450

30 Closing 4 450 — —

218

 
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