An end of period spreadsheet includes columns for

ANSWER ALL QUESTIONS IN FIELD: READ CAREFULLY PLEASE LABEL EACH QUESTION

Question 1

Classifying Accounts

Balances for each of the following accounts appear in an adjusted trial balance. Identify each as an asset, liability, revenue, or expense.

1. Accounts Receivable

2. Equipment

3. Fees Earned

4. Insurance Expense

5. Land

6. Prepaid Rent

7. Rent Revenue

8. Salary Expense

9. Salary Payable

10. Supplies

11. Unearned Rent

12. Wages Payable

Question 2

Financial Statements from the End-of-Period Spreadsheet

Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 2019:

Elliptical Consulting

End-of-Period Spreadsheet

For the Year Ended June 30, 2019

Unadjusted

Adjusted

Trial Balance

Adjustments

Trial Balance

Account Title

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Cash

27,000

27,000

Accounts Receivable

53,500

53,500

Supplies

3,000

(a)

2,100

900

Office Equipment

30,500

30,500

Accumulated Depreciation

4,500

(b)

1,500

6,000

Accounts Payable

3,300

3,300

Salaries Payable

(c)

375

375

Jayson Neese, Capital

82,200

82,200

Jayson Neese, Drawing

2,000

2,000

Fees Earned

60,000

60,000

Salary Expense

32,000

(c)

375

32,375

Supplies Expense

(a)

2,100

2,100

Depreciation Expense

(b)

1,500

1,500

Miscellaneous Expense

2,000

2,000

150,000

150,000

3,975

3,975

151,875

151,875

Based on the preceding spreadsheet, prepare an income statement for Elliptical Consulting.

Elliptical Consulting

Income Statement

For the Year Ended June 30, 2019

$

Expenses:

$

Total expenses

$

Based on the preceding spreadsheet, prepare a statement of owner's equity for Elliptical Consulting.

Elliptical Consulting

Statement of Owner's Equity

For the Year Ended June 30, 2019

$

$

$

Based on the preceding spreadsheet, prepare a balance sheet for Elliptical Consulting.

Elliptical Consulting

Balance Sheet

June 30, 2019

Assets

Current assets:

$

Total current assets

$

Property, plant, and equipment:

$

Total property, plant, and equipment

Total assets

$

Liabilities

Current liabilities:

$

Total liabilities

$

Owner's Equity

Total liabilities and owner's equity

$

Question 3:

Income Statement; Net Loss

The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the accounts had been adjusted on February 28, 2019, the end of the fiscal year:

Depreciation Expense

$7,500

Insurance Expense

3,000

Miscellaneous Expense

8,150

Rent Expense

54,000

Service Revenue

448,400

Supplies Expense

2,750

Utilities Expense

33,900

Wages Expense

360,000

Prepare an income statement. Use a minus sign to indicate a net loss.

Wholistic Health Services Co.

Income Statement

For the Year Ended February 28, 2019

$

Expenses:

$

Total expenses

Question 4:

Statement of Owner's Equity

Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal yearended December 31, 2019, are as follows:

Bart Nesbit, Capital

Bart Nesbit, Drawing

Dec. 31

90,000

Jan. 1 (2019)

1,375,000

Mar. 31

22,500

Dec. 31

90,000

Dec. 31

355,000

June 30

22,500

Sept. 30

22,500

Dec. 31

22,500

Prepare a statement of owner's equity for the year.

Apex Systems Co.

Statement of Owner's Equity

For the Year Ended December 31, 2019

$

$

$

Question 5:

Balance Sheet Classification

At the balance sheet date, a business owes a mortgage note payable of $375,000, the terms of which provide for monthly payments of $1,250.

How should the liability be classified on the balance sheet?

Current liability: $ Long-term liability: $

Question 6:

Balance Sheet

Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows:

Accounts Payable

$37,700

Accounts Receivable

116,750

Accumulated Depreciation - Equipment

186,400

Cash

?

Equipment

474,150

Land

300,000

Prepaid Insurance

7,200

Prepaid Rent

21,000

Salaries Payable

9,000

Cheryl Viers, Capital

710,300

Supplies

4,800

Unearned Fees

18,000

Prepare a classified balance sheet that includes the correct balance for Cash.

Optimum Weight Loss Co.

Balance Sheet

November 30, 2019

Assets

Current assets:

$

Total current assets

$

Property, plant, and equipment:

$

$

Total property, plant, and equipment

Total assets

$

Liabilities

Current liabilities:

$

Total liabilities

$

Owner's Equity

Total liabilities and owner's equity

$

Question 7:

Closing Entries

Prior to closing, total revenues were $12,840,000 and total expenses were $9,975,000.

During the year, the owner made no additional investments and withdrew $630,000. After the closing entries, how much did the owner’s capital account change?

$

Question 8:

Post-Closing Trial Balance

An accountant prepared the following post-closing trial balance:

La Casa Services Co. Post-Closing Trial Balance March 31, 2019

Debit Balances

Credit Balances

Cash

46,540

Accounts Receivable

122,260

Supplies

4,000

Equipment

127,200

Accumulated Depreciation - Equipment

33,600

Accounts Payable

52,100

Salaries Payable

6,400

Unearned Rent

9,000

Sonya Flynn, Capital

198,900

462,400

137,600

Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct. If an amount box does not require an entry, leave it blank.

La Casa Services Co.

Post-Closing Trial Balance

March 31, 2019

Debit Balances

Credit Balances

Cash

Accounts Receivable

Supplies

Equipment

Accumulated Depreciation-Equipment

Accounts Payable

Salaries Payable

Unearned Rent

Sonya Flynn, Capital

Question 9:

Working Capital and Current Ratio

The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:

December 31

Year 2

Year 1

Current assets

$1,498,763

$1,549,399

Current liabilities

478,810

421,627

a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places.

December 31

Year 2

Year 1

Working capital

$

$

Current ratio

b. What conclusions concerning the companys ability to meet its financial obligations can you draw from part (a)? Under Armour's working capital by $ during Year 2. The current ratio in Year 2. Because year 2's current ratio indicates a liquidity position, the short-term creditors concerned about receiving payment from Under Armour.

Question 10:

Appendix: Adjustment Data on an End-of-Period Spreadsheet

Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019. In addition, the data for year-end adjustments are as follows:

a. Fees earned, but not yet billed, $13.

b. Supplies on hand, $4.

c. Insurance premiums expired, $10.

d. Depreciation expense, $3.

e. Wages accrued, but not paid, $1.

Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. If a box does not require an entry, leave it blank.

Alert Security Services Co.

End-of-Period Spreadsheet (Work Sheet)

For the Year Ended October 31, 2019

Account Title

Unadjusted Trial Balance Debit

Unadjusted Trial Balance Credit

Adjustments Debit

Adjustments Credit

Adjusted Trial Balance Debit

Adjusted Trial Balance Credit

Cash

12

Accounts Receivable

90

Supplies

8

Prepaid Insurance

12

Land

190

Equipment

50

Accum. Depr.-Equipment

4

Accounts Payable

36

Wages Payable

0

Brenda Schultz, Capital

260

Brenda Schultz, Drawing

8

Fees Earned

200

Wages Expense

110

Rent Expense

12

Insurance Expense

0

Utilities Expense

6

Supplies Expense

0

Depreciation Expense

0

Miscellaneous Expense

2

Totals

500

500

Question 11:

Identify Journals

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the following transactions should be recorded:?

from the list.

a. Receipt of cash refund from overpayment of taxes.

b. Adjustment to record accrued salaries at the end of the year.

c. Providing services on account.

d. Investment of additional cash in the business by the owner.

e. Receipt of cash on account from a customer.

f. Receipt of cash for rent.

g. Receipt of cash from sale of office equipment.

h. Sale of used office equipment on account, at cost, to a neighboring business.

i. Closing of drawing account at the end of the year.

j. Providing services for cash.

Question 12:

Prepare Journal Entries in a Revenue Journal

Horizon Consulting Company had the following transactions during the month of October:

Oct. 2.

Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $595.

Oct. 3.

Issued Invoice No. 322 to Armor Inc. for services rendered on account, $310.

Oct. 14.

Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $205.

Oct. 24.

Issued Invoice No. 324 to Rose Co. for services rendered on account, $850.

Oct. 29.

Collected Invoice No. 321 from Pryor Corp.

a. Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format:

REVENUE JOURNAL

DATE

Invoice No.

Account Debited

Post. Ref.

Accounts Rec. Dr. Fees Earned Cr.

Oct. 2

Oct. 3

Oct. 14

Oct. 24

Oct. 31

b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October?

Accounts receivable

$

Fees earned

$

c. What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1? $

Question 13:

Accounts Receivable Subsidiary Ledger

The revenue journal and cash receipts journal for Polaris Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $3,790 consisting of an amount due from Clear Pointe Studios Inc.

REVENUE JOURNAL

Page 16

Date

Invoice No.

Account Debited

Post Ref.

Accounts Rec. Dr. Fees Earned Cr.

20Y4

Jan. 6

1

Echo Broadcasting Co.

✔

2,300

Jan. 14

2

Gold Coast Media Inc.

✔

5,100

Jan. 22

3

Echo Broadcasting Co.

✔

2,980

Jan. 25

4

Clear Pointe Studios Inc.

✔

1,650

Jan. 29

5

Amber Communications Inc.

✔

3,650

Jan. 31

15,680

(12)(41)

CASH RECEIPTS JOURNAL

Page 36

Date

Account Credited

Post Ref.

Fees Earned Cr.

Accounts Rec. Cr.

Cash Dr.

20Y4

Jan. 6

Clear Pointe Studios Inc.

✔

—

3,790

3,790

Jan. 11

Fees Earned

3,200

3,200

Jan. 18

Echo Broadcasting Co.

✔

—

2,300

2,300

Jan. 28

Gold Coast Media Inc.

✔

—

5,100

5,100

Jan. 31

3,200

11,190

14,390

(41)

(12)

(11)

Prepare a listing of the accounts receivable customer balances and verify that the total agrees with the ending balance of the accounts receivable controlling account. If an amount is zero, enter "0".

Polaris Productions Inc.

Accounts Receivable Customer Balances

January 31, 20Y4

Amber Communications Inc.

$

Clear Pointe Studios Inc.

Echo Broadcasting Co.

Gold Coast Media Inc.

Total accounts receivable

$

Polaris Productions Inc.

Accounts Receivable

Controlling

Balance, January 1, 20Y4

$

Total debits (from revenue journal)

Total credits (from cash receipts journal)

Balance, January 31, 20Y4

$

Question 14:

Show Me How

Calculator

Revenue and Cash Receipts Journals

Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows:

Mar. 2.

Issued Invoice No. 512 to Santorini Co., $905.

Mar. 4.

Received cash from CMI Inc., on account, for $205.

Mar. 8.

Issued Invoice No. 513 to Gabriel Co., $220.

Mar. 12.

Issued Invoice No. 514 to Yarnell Inc., $845.

Mar. 19.

Received cash from Yarnell Inc., on account, $555.

Mar. 20.

Issued Invoice No. 515 to Electronic Central Inc., $195.

Mar. 28.

Received cash from Marshall Inc. for services provided, $160.

Mar. 29.

Received cash from Santorini Co. for Invoice No. 512 of March 2.

Mar. 31.

Received cash from McCleary Co. for services provided, $85.

Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Enter the transactions in chronological order.

REVENUE JOURNAL

DATE

Invoice No.

Account Debited

Post. Ref.

Accounts Rec. Dr. Fees Earned Cr.

20Y8

Add DAtes

List accounts

✔

✔

✔

✔

Total

If an amount box does not require an entry, leave it blank.

CASH RECEIPTS JOURNAL

PAGE 12

DATE

Account Credited

Post. Ref.

Fees Earned Cr.

Accounts Rec. Cr.

Cash Dr.

20Y8

Add dates

List accounts

✔

✔

✔

Total

Question 15:

Identify transactions in accounts payable subsidiary ledger

The debits and credits from three related transactions are presented in the following creditor's account taken from the accounts payable ledger:

NAME

Apex Performance Co.

ADDRESS

101 W. Stratford Ave.

Date

Item

Post. Ref.

Debit

Credit

Balance

20Y7

June 6

P49

12,000

12,000

June 14

J12

150

11,850

June 16

CP23

11,850

—

Describe each transaction (Purchase on account, paid on, sold on, received on, corrected error or received allowance , and identify the source(purchase journal, cash receipts journal, cash payemnts journal, revenue journal, general journal) of each posting.

Date

Describe Transaction

Transaction Source

June 6

June 14

June 16

Question 16:

Prepare Journal Entries in a Purchases Journal

Guardian Services Inc. had the following transactions during the month of April:

Apr. 4.

Purchased office supplies from Officemate Inc. on account, $415.

Apr. 9.

Purchased office equipment on account from Tek Village Inc., $2,460.

Apr. 16.

Purchased office supplies from Officemate Inc. on account, $185.

Apr. 19.

Purchased office supplies from Paper-to-Go Inc. on account, $195.

Apr. 27.

Paid invoice on April 4 purchase from Officemate Inc.

a. Prepare a purchases journal to record the April purchase transactions for Guardian Services Inc. If an amount box does not require an entry, leave it blank.

If no entry is required in "Other Accounts Dr." then select "No entry required".

PURCHASES JOURNAL

DATE

Account Credited

Post. Ref.

Accounts Payable Cr.

Office Supplies Dr.

Other Accounts Dr.

Post. Ref.

Amount

Apr. 4

Apr. 9

Apr. 16

Apr. 19

Apr. 30

Total

b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April?

Credit to accounts payable

$

Debit to office supplies

$

c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1? $

Question 17:

Segment Revenue Horizontal Analysis

Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year:

Recent Year (in millions, rounded)

Prior Year (in millions, rounded)

Americas

$13,293

$11,980

EMEA*

1,217

1,295

China/Asia Pacific

2,396

1,130

Channel Development**

1,731

1,546

Other

526

497

Total

$19,163

$16,448

*Europe, Middle East, and Africa

**Sells packaged coffee and teas globally

a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreases values.

Starbucks Corporation

Horizontal Analysis

Recent Year (in millions)

Prior Year (in millions)

Increase (Decrease) Amount

Increase (Decrease) Percent

Americas

$13,293

$11,980

$

%

EMEA

1,217

1,295

%

China/Asia Pacific

2,396

1,130

%

Channel Development

1,731

1,546

%

Other

526

497

%

Total revenues

$19,163

$16,448

$

%

b. Prepare a vertical analysis of the segment data. Round all percents to one decimal place.

Starbucks Corporation

Vertical Analysis

Recent Year Amount

Recent Year Percent

Prior Year Amount

Prior Year Percent

Americas

$13,293

%

$11,980

%

EMEA

1,217

%

1,295

%

China/Asia Pacific

2,396

%

1,130

%

Channel Development

1,731

%

1,546

%

Other

526

%

497

%

Total revenues

$19,163

%

$16,448

%

c. Based on the percentages in the vertical analysis, which of Starbuck's operations grew more? Americas, EMEA, CHINA/ASIA Pacific? Choose one

Question 18

Segment Revenue Vertical Analysis

Twenty-First Century Fox, Inc. is one of the world’s largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite properties. The company provided revenue disclosures by its major product segments in the notes to its financial statements as follows:

a. Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues. Round all percentages to one decimal place.

Major Product Segments

For a Recent Year (in millions)

Percent (%)

Cable Network Programming

$13,773

%

Television

4,895

%

Filmed Entertainment

9,525

%

Direct Broadcast Satellite Television

2,112

%

Total revenues

$30,305

100.0%

Question 20

Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-ofperiod spreadsheet at December 31, 2019, fiscal year :

Beacon Signals Company

End-of-Period Spreadsheet

For the Year Ended December 31, 2019

Unadjusted Trial Balance

Adjustments

Adjusted Trial Balance

Account Title

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Cash

13,000.00

13,000.00

Accounts Receivable

40,500.00

(a) 12,500.00

53,000.00

Prepaid Insurance

4,200.00

(b) 3,000.00

1,200.00

Supplies

3,000.00

(c) 2,250.00

750.00

Land

98,000.00

98,000.00

Building

500,000.00

500,000.00

Accumulated Depreciation-Building

255,300.00

(d) 9,000.00

264,300.00

Equipment

121,900.00

121,900.00

Accumulated Depreciation-Equipment

100,100.00

(e) 4,500.00

104,600.00

Accounts Payable

15,700.00

15,700.00

Salaries and Wages Payable

(f) 4,900.00

4,900.00

Unearned Rent

2,100.00

(g) 1,300.00

800.00

Sarah Colin, Capital

238,100.00

238,100.00

Sarah Colin, Drawing

10,000.00

10,000.00

Fees Earned

388,700.00

(a) 12,500.00

401,200.00

Rent Revenue

(g) 1,300.00

1,300.00

Salaries and Wages Expense

163,100.00

(f) 4,900.00

168,000.00

Advertising Expense

21,700.00

21,700.00

Utilities Expense

11,400.00

11,400.00

Depreciation Expense-Building

(d) 9,000.00

9,000.00

Repairs Expense

8,850.00

8,850.00

Depreciation Expense-Equipment

(e) 4,500.00

4,500.00

Insurance Expense

(b) 3,000.00

3,000.00

Supplies Expense

(c) 2,250.00

2,250.00

Miscellaneous Expense

4,350.00

4,350.00

1,000,000.00

1,000,000.00

37,450.00

37,450.00

1,030,900.00

1,030,900.00

Required: DO ALL 1-5 with correct labels

1.

Prepare an income statement for the year ended December 31. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.

2.

Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items.

3.

Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

4.

Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. If you are unsure of account titles, see the chart of accounts.

5.

Prepare a post-closing trial balance.

Question 21

Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, the end of the fiscal year , the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows:

Finders Investigative Services

End-of-Period Spreadsheet

For the Year Ended June 30, 2019

~

Adjusted Trial Balance

Account Title

~

Dr.

Cr.

~

Cash

~

28,000

Accounts Receivable

~

69,600

Supplies

~

4,600

Prepaid Insurance

~

2,500

Building

~

439,500

Accumulated Depreciation-Building

~

44,200

Accounts Payable

~

11,700

Salaries Payable

~

3,000

Unearned Rent

~

2,000

Stacy Tanner, Capital

~

373,800

Stacy Tanner, Drawing

~

12,000

Service Fees

~

718,000

Rent Revenue

~

12,000

Salaries Expense

~

522,100

Rent Expense

~

48,000

Supplies Expense

~

10,800

Depreciation Expense-Building

~

8,750

Utilities Expense

~

7,150

Repairs Expense

~

3,000

Insurance Expense

~

2,500

Miscellaneous Expense

~

6,200

~

1,164,700

1,164,700

Required: DO ALL 1-3 AND LABEL ALL

1.

Prepare an income statement, a statement of owner’s equity (no additional investments were made during the year), and a balance sheet. *

2.

Journalize the entries that were required to close the accounts at June 30.

3.

If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, what would have been the amount of net income or net loss?

* Be sure to read the instructions for each financial statement carefully. Refer to the chart of accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Question 22

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July:

Jul.

1

The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received.

1

Paid three months’ rent on a lease rental contract, $6,000.

2

Paid the premiums on property and casualty insurance policies, $4,500.

4

Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000.

5

Purchased additional office equipment on account from Office Necessities Co., $5,100.

6

Received cash from clients on account, $12,750.

10

Paid cash for a newspaper advertisement, $500.

12

Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.

12

Provided services on account for the period July 1–12, $14,200.

14

Paid receptionist for two weeks’ salary, $1,500.

Record the following transactions on Page 2 of the journal:

Jul.

17

Received cash from cash clients for fees earned during the period July 1–17, $10,400.

18

Paid cash for supplies, $1,000.

20

Provided services on account for the period July 13–20, $9,000.

24

Received cash from cash clients for fees earned for the period July 17–24, $8,500.

26

Received cash from clients on account, $12,000.

27

Paid receptionist for two weeks’ salary, $1,500.

29

Paid telephone bill for July, $325.

31

Paid electricity bill for July, $675.

31

Received cash from cash clients for fees earned for the period July 25–31, $7,100.

31

Provided services on account for the remainder of July, $5,500.

31

Jolene withdrew $20,000 for personal use.

Required: ANSWER ALL BELOW AND LABEL JUST PUT ANSWERS THAT GO IN EVERY JOURNAL ENTRy

1.

Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

2.

Post the July transactions.

A.

Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts. Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

B.

Add the appropriate posting reference to the journal in CengageNOW.

3.

Prepare an unadjusted trial balance.

4.

At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6).

•

Insurance expired during July is $375.

•

Supplies on hand on July 31 are $2,850.

•

Depreciation of office equipment for July is $400.

•

Accrued receptionist salary on July 31 is $140.

•

Rent expired during July is $2,000.

•

Unearned fees on July 31 are $3,000.

5.

(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.

6.

A.

Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31.

B.

Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in.

7.

Prepare an adjusted trial balance.