complete the accounting cycle, assignment help

complete the accounting cycle, assignment help

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Description
During its first month of operation, the Rawls Repair Company, which specializes in bicycle repairs, completed the following transactions:

Oct. 1 Owner, John Rawls, began business by investing $12,000 in exchange for common stock.

Oct. 1 Paid the premium on a one-year insurance policy, $1,200.

Oct. 1 Paid the current month’s rent, $1,040.

Oct. 3 Purchased repair equipment from Conklin Company, $4,400 by signing a 2-year note.

Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.

Oct. 19 Made partial-payment to McKenna Company, $200.

Oct. 20 Paid wages to part-time assistant, $500.

Oct. 31 Cash bicycle repair revenue for October, $2,672. (for simplicity, record this all at once, rather than daily)

Oct. 31 The owner (and sole stockholder), John Rawls, was paid a dividend of $400.

Oct. 31 Received a bill for October utilities, $185, to be paid in November.

REQUIREMENT #1:

Prepare journal entries to record the October transactions in the Journal.

REQUIREMENT #2:

Post the October journal entries to the T-Accounts and compute ending balances.

REQUIREMENT #3:

Prepare a trial balance at October 31.

REQUIREMENT #4:

Prepare Oct. 31 adjusting entries in the Journal using the following information.

a) One month’s worth of prepaid insurance has expired.

b) The remaining amount of repair supplies at month-end is $194.

c) The estimated monthly depreciation on repair equipment is $70.

d) Unpaid wages at Oct. 31 are $100.

Requirement #5:

Post your adjustments to the T-accounts and compute adjusted balances.

(Just add to the October T-accts.)

Requirement #6:

Prepare an Adjusted Trial Balance.

Requirement #7:

Prepare the financial statements for Rawls Repair Company as of October 31:

Income Statement

Retained Earnings Statement

Classified Balance Sheet

Requirement #8:

Prepare the closing entries at October 31 in the Journal.

Requirement #9:

Post the closing entries to the T-accounts and compute ending balances. (Just add to the adjusted balances already listed.)

Requirement #10:

Prepare a post-closing trial balance as of October 31.