Question

Individual Typewritten Student Project

The Complete Accounting Cycle

Due Date: December , 2015

Jonathan Vegas opened up Vegas Services on March l, 2015. During the month, the following transactions occurred:

March I  Vegas invested $12,000 cash in the business.

1 Purchased a desk top and a lap top computer, a printer and associated cables for $6,000, paying $3,000 cash and the balance on account.

3   Purchased office supplies for $1,300 on account.

5   Paid $2,400 cash on one-year insurance policy effective January 1.

12  Billed customers $2,500 for various services.

18 Paid $1 ,000 cash on the amount owed on the equipment and $800 on the amount owed on the office supplies.

20 Paid $1,200 cash for employee salaries.    20 Collected $1,400 cash from customers billed dn March 5.

25 Billed customers $7,000 for various services.

31 Paid utility bill upon receipt, $200.

31  Withdrew $900 cash for personal use.

The chart of accounts for Vegas Services contains the following accounts: No. 101 Cash, No. 1 12 Accounts

Receivable, No. 128 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No, 158 Accumulated Depreciation

Equipment, No, 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 301 Vegas, Capital, No. 306 Vegas, Drawings, No, 350 Income Summary, No. 400 Service Revenue, No, 633 Utility Expense, No. 634 Supplies Expense, No. 71 1 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense..

Adjustment data:

1. Services provided but unbilled and uncollected at March 31 were $1,500.
2. Depreciation on equipment for the month was $300.
3. One-twelfth of the insurance expired.
4. An inventory count shows $400 of cleaning supplies on hand at March 31.
5. Accrued but unpaid employee salaries were $600.

Requirements (complete the accounting cycle) — All blank documents may be obtained from the AC-IOI Lib Guide

l . Prepare the journal entries and post to thc General Ledger.

2. Prepare an unadjusted trial balance (on the worksheet).
3. Prepare the adjusting entries (on a separate journal page) and post to the General Ledger (also show on the worksheet).
4. Prepare an adjusted trial balance (on the worksheet),
5. Complete the worksheet for the month ended March 3 1, 2015, through the adjusted trial balance section only.
6. Prepare the income statement, the statement of owner's equity, and the classified balance sheet
7. Prepare the closing entries (on a separate journal page) and post to the General Ledger.
8. Prepare a post-closing trial balance.

Submit the above items to your instructor using the following arrangement:

Income Statement

Balance Sheet

Adjusted trail balance

Journal entries (traditional, adjusting and closing)

Answer 1