Penn Foster Exam 061579 Create the following financial statements for J & L Accounting, Inc

The goal of this graded project is to create the following financial statements for J & L Accounting, Inc.: ■ Balance sheet ■ Income statement ■ Statement of retained earnings ■ Post-closing trial balance



Date Accounts Post Ref Debit Credit

1

Jan 1, 2015 Prepaid Rent $12.000 On January 1, 2015, a payment in cash for $12,000 Cash $12.000 is made for prepaying rent for the entire year 2015.

Jan 4, 2015 Cash 2 $1.900 On January 4, 2015, accounting services are Service Revenue $1.900 performed and payment is received in cash for the amount of $1 ,900.

Jan 9, 2015 Advertising Expense 3 $850 On January 9, 2015, a payment in cash for Cash $850 advertising is made in the amount of $850.

Jan 10, 2015 Office Supplies Expense 4 $75 On January 10, 2015, office supplies are purchased

Cash $75 in the amount of $75 with cash.

Jan 14, 2015 Cash 5 $2.725 On January 14, 2015, accounting services are Service Revenue $2.725 performed and payment is received in cash for the amount of $2,725.

Jan 20, 2015 Telephone Expenses 6 $660 On January 20, 2015, the telephone bill for the Cash $660 amount of $660 is received and paid with cash.

Jan 20, 2015 Utility Expense 7 $2.925 on January 20, 2015, the utilities bill for $2,925 is

Accounts Payable $2.925 received. The bill won't be paid until it is due on 02/15/15

Jan 27, 2015 Account Receivable 8 $3.750 On January 27, 2015, accounting services are Service Revenue $3.750 performed on account in the amount of $3,750.

Jan 28, 2015 Advertising Expense 9 $1.500 On January 28, 2015, a payment in cash for $1 ,500

Cash $1.500 is made for a bill from an advertising agency

2. Post the transactions to the general ledger, creating new ledger accounts as necessary. Calculate the new general ledger account balances.

Cash, Business Checking

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $20.500 $20.500

Jan 1, 2015 Perpaid Rent 1 $12.000 $8.500

Jan 4, 2015 Service Revenue 2 $1.900 $10.400

Jan 9, 2015 Advertising Expense 3 $850 $9.550

Jan 10, 2015 Office Supplies Expense 4 $75 $9.475

Jan 14, 2015 Service Revenue 5 $2.725 $12.200

Jan 20, 2015 Telephone Expenses 6 $660 $11.540 Jan 28, 2015 Advertising Expense 9 $1.500 $10.040

Common Stock

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $38.000 $38.000

Vehicles

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $48.000 $48.000

Equipment

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $3.600 $3,600

Supplies Expense

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 10, 2015 cash 4 $75 $75

Accounts Payable

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 20, 2015 Utility Expense $7 $2.925 $2.925

Service Revenue

Date Item Refi Debit Credit Balance

Debit Credit

Jan 4, 2015 Cash 2 $1.900 $1.900

Jan 14, 2015 Cash $5 $2.725 $4.625

Jan 27, 2015 Account Receivable $8 $3.750 $8.375

Accounts Receivable

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 27, 2015 Service Revenue $8 $3.750 $3.750

Utility Expense

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 20, 2015 Accounts Payable $7 $2.925 $2.925

Dividends

Date Item Ref. Debit Credit Balance

Debit Credit

Rent Expenses

Date Item Ref. Debit Credit Balance

Debit Credit

Jan l , 2015 $0

Prepaid Rent

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Cash $1 $12 0 00

Advertising Expense

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 9, 2015 Cash 3 $850 $850

Jan 28, 2015 Cash $9 $1.500 $2.350

Accumulated Depreciation, Vehicles Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $12.000 $12.000

Accumulated Depreciation, Equipment

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $600 $600

Retained Earnings

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 1, 2015 Beg. Balance $21.500 $21.500

Telephone Expenses

Date Item Ref. Debit Credit Balance

Debit Credit

Jan 20, 2015 Cash 6 $660 $660
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