Management Tools Application
Management Tools Application-Unit 2 Assignment
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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:
- 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
- Post the journal to a ledger of four-column accounts.
- 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:
- Prepare the Adjusting entries A-F. a. Insurance expired during June is $150.
- Supplies on hand on June 30 are $1,020.
- Depreciation of office equipment for June is $500.
- Accrued receptionist salary on June 30 is $120.
- Rent expired during June is $1,500.
- Unearned fees on June 30 are $2,000.
- Prepare an income statement, a statement of owner’s equity, and a balance sheet.
- Journalize and Post the adjusting entries.
- Journalize and post the closing entries. (Income Summary is account #33 in the chart of accounts.)
- Prepare a post-closing trial balance.
COMPREHENSIVE PROBLEM 1 Solution
- 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
- 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 — —
