Comprehensive Accounting Cycle Review Problem (On December 1% Curt Williamson began an auto repair shop, Wiliamsons Quality Automotive. The following information about December's transactions, accounts, and adjustment data is available, ‘Transactions De 1 1 9 10 19 22 26 28 34 34 at 31 }ec. 1 Williamson contributed $50,000 cash to the business in exchange for capital. Purchased $10 800 of equipment paying cash. Paid $4,500 for a 9-month insurance policy starting on December 1 Paid $18,000 cash to purchase land to be used in operations Purchased office supplies on account $3000. Borrowed $28,000 from the bank for business use Williamson signed a note payable to the bank in the name of the business. Paid $800 for advertising expenses Paid $1,000 on account The business received a bil for utilities to be paid in January, $280. Revenues eamed during the month included $17 500 cash and $2 700 on account Paid employees! salaries $3,600 and building rent $700. Record as a compound entry. ‘The business received $1 440 for auto screening services to be performed next month Wiliamson withdrew cash of $3,000 Accounts Cash: Accounts Receivable; Office Supplies Prepaid insurance: Equipment; Accumulated Depreciation-Equipment Land: Accounts Payable; Utiities Payable: Interest Payable; Unearned Revenue: Notes Payable Williamson, , Capital; Williamson, Withdrawals; Service Revenue; Salaries Expense: Rent Expense: Utilities Expense: ‘Advertising Expense; Supplies Expense: Insurance Expense; interest Expense; and Depreciation Expense-Equipment. Adjustment Data Rese Office Supplies used during the month, $600. Depreciation for the month $180. ‘One month insurance has expired. ‘Accrued Interest Expense. $75 Requirements: ‘Complete the following on the attached work papers yawns Prepare the journal entries and post to the T-accounts Prepare an unadjusted trial balance. Prepare the adjusting entries and post to the T-accounts Prepare an adjusted trial balance. Prepare the income statement the statement of owner's equity. and a classified balance sheet. Use proper formatting techniques including headings, dollar signs, end underlining. Prpare the closing entries and post to the T-accounts. Prepare a post-ciosing trial balanceGENERAL JOURNAL DEBIT CREDIT DATE ACCOUNT TITLES AND EXPLANATION Record Transactions, Adjusting Entries, Closing Entries in this journal Dec £ - EAS ‘H50,000 witliamsen capital 01002 Curt Wiitiapn Son avers cosh Iie busines Ll Egoiprenr Fia,G00 a Ca sh 10,00 pote Lased egelprat ent with cosh L| Pre Paid ingulon cE 500 Cash 502 to record mdvince payment of nGulevice T | Cand 13,000 Case 00 To putchace fand with 10 | Office. Suopile 3) 008 A ecovats pay able 3,200 fo_puttha of ce Suppyi your IT | easn 28 ooo Wwotes _payab FE 2B ooo Borrowed 28j0° by Sigalng fale 22 Advertisirg eX pense S300 cash [F800 Te pay OXpenSe wlth cosh 26 | Awcunts Payable Fh co Cash Ie] a0 Fe Poy caSh on account tb 29 | OF MS expense pare ORL. Payod be Zao To Incur wiliites exp, teGENERAL JOURNAL. DATE ACCOUNT TITLES AND EXPLANATION DEBIT_| CREDIT Dec 30) Cash 17, 500. ActouS receivable 62. 706 ervive revenve 20200 To copect Setulce revere pa Cast, aa) ottiguat salaries expen SF. 3600: rear exp if Too. Cash err fe poy susaties *xpense and reat a5 ST ca3h “IZED wnerrnéd reurnwe L Ao Conected ca$s for Lube Services BT william Som , withdrawal. 3,000 CAS P2000 Owner w Phdrasal Q | Supplies ex pense Foo OFFICE ie5 3600 To fecon ofCre Suppies Se: b [Depreciation OXpense - eguip $1G0 Accum viared deprecen tion = equip 3190 To Fecord deprerinstin 6. gig ent. C [insurance _OxXpenge iSinoe Prepaid insurance [S00 To record expired insurance ae expense S75 loterest payable 37S Te _jacer inierest expmnse Clos Service re venve 520,200 lNnCome Summar; [$202.00 te close_revenveGENERAL JOURNAL DATE ‘ACCOUNT TITLES AND EXPLANATION DEBIT_| CREDIT ‘Record Transactions, Adjusting Entries, Closing Entries in this journal nec CO income Sunrar TL755 sapitS expense 36 00 Rent expense Too Util Fes expense Zgo Adverising expense Boo Suppiies eens 600 Misuraaw "eupenZ Foo Interest expense. Tz Depreciation expense egVigime ct 160 jo Close Expenses = 105.) wt Ba Capra) wae _Syenary $13,465 pene Sa a wiilamsen Capital $1465 te close intomt ALT Cos. CD Twi iarsecn Cap al $3,000 ited raw cal S $3000 ts Close withdrn wasGENERAL LEDGER be i ee ee Se [ee veel FH FSP ED dec 0 $290 |b 4,500 Dec! beat de $3,006 | $600 (a) Bec! $17, 5% |g 49, 500 Dec 9 Oe 91440 1h 00 Dec #* [b 4,320 Dec 3! Bee oe as mre aTaGAS Ao a ‘Bal, $2400 Equipment ‘Accum. Deprec. — Equip. Land ‘Accounts Payable a $1ga (4) ded 418,000 Ve F tooo Pave Dec @ ——- o_o Bal. ee Bal i900 $2000 Bal. Utilities Payable Interest Payable Uneamed Revenue Notes Payable-Williamson icone $75 @D ‘(ait 5285000 Dec 8 75 Bal. [$280 Bal. Hhqto Bal. $48,000 bal. Capital-Williamson Withdrawals Service Revenue Salaries Expense 50000 vel yon ghana F270 bes WOH loo sii o00[9%01 0 Bal. FF Iyaa | Bo OBL) 2 . 413465 clas” Cw tonal Stgpoe Bal, bak BP F 3,Fo0 Cie{e) ba E Bal, BO 0 Bal BanGENERAL LEDGER Rent Expense Utilities Expense Advertising Expense Supplies Expense wecFF 160 wer™ Ff B00 (A) $600 Dec*t $ 20 sar S yan [ho CE) Bald 299 _|F 780 Cros) sai, FG00 |f So Cres(z)iah 967° [9 600 BSG) f Expense reterest Expense — ©*Debreciatioh Exp. Equip. ©! Sacomd Summary (DS Seo (De 75 (y) 1 (tool) G755] 822) 2? cles! Ui FONG [IBS Bal ane eal ae BRM az 41s MO Srgwe | F 190 Hel) Bal. 0 wr O EroTwilliam Sons Bualt/ Avemotive ‘Unadjusted Trial Balance December 31 Debits_|_ Credits Cash 54540 Actounts fecéivablé 2)720 Office SUoprie 10.00 on Paidé inSurance 4b oe gupment 10, 720 Lond 18,000 Accounrs pay abl $200 Utilities pat apie 2.80 unearned | 5 Awe 14a Nores payabie ~ wiiamse, 23, 900 C4 pital = william son 5o, 000 withdrawals: 3,000 Service revenve 20,200 Salaries expense 3 bo Rent expense 20. Utilities 'ex pense 280 AdverpiSiag a Totals 7 ft 222 Io, 720 ig OL,729.WilliansonS Quality Aytonnropive ‘Adjusted Trial Balance Deceriber 3} Debits Credits Cash $54, 50 Kcount> feceiva ble 2) 700 office supplieS Zoo Prepaid ip sulanc? T0200 lipeae a 10, 800 Acéviy. depred, — @fuipment $180 Land T,000 ACCOUNTS Pay able Z) 000 Utes pay able 1g Interegt pay 4 ble 75 Un eomed re venue. 1440 Notes a Pm Wil AMG6N 28,000 LA pie WH Son 5o,000 with dranays 3,000 Servite reveny 30200 Salari€s expense, 3,600 Rent ¢ pens: Too UtHities ex pense 280 Advertising 2ypense B00 su ppiies F expense Dou (nsurance Cxpense 500 78 taser EXpense a Ox. equip me mt 7 lf fon75 | 102,175wwilhiann son auatlty Autor VE Income Statement month ended December St Revenues ¢ BEV, WAU Fa zoo Expenses 3 ALATICS Cx yeh fBiee | Rene pen 26 foe Uriities” "expense 4io Adversigi ex pens€ boo upplits Bx pense Co InSurance ex penze ie loreres? eXpen; 75. Otpreciation expense CGurpraent Lee Total expenses ~ ee Mer income es wwilliam Son _ Quanity Automotive Statement of Changes ia Owner's Equity Month ended December 31 Wiliamaon, Caplial, Dac 2 £57,000 Mer [neoere: IS H6o Bwithdrawals ee williara $20 , capital Bec 31 4Bwilliamgen Quality Autorrative Balance Sheet Dec 31 Current assets: Se Cash SY SHO Accounts recelva ble 700 OFF ice Suppiies Zi Yoo Prepaid in surance 4, 000 fotal_cucrent ussets 562,640 Plant assets: Equipe, io ; — 00. Accum, Deprécs C4vip ment | (130) 10,620 foral piant asset: 9 Lo Stal a3SctS £ 92-260 Correot tabilitie 5+ Account payabi 2,000 Utilities Pay ah k 260 Interest Pay ah k 5 thearned Levenue L44o ae | current apiitles 4 ong term jjabilities ———— Gores Payu bie 29,000 Total aby He Tas Wiliam Son, Capital, d L $5 Total jiabilities ang pw . i $90,260win iarngens auallt’ Aytorrotive Post-Closing Trial Balance December BI Debits | Credits CASh 554, 540 Accts. Pec 2,709 OFFICE SuolilF 2,420 Prepaid IpSurance Yeo ‘pinent 10,200 AcLur. Deprec.- Cayip Ment $1e0 Land : ig 19,000 Acca pay ble 24000 rll Tig Able 260 | Otereg+ ‘dill {5 Unarmed “rexZou 144O Mates gayable — wians™ 28000 tapiial- willta 0 $0,465 PRL ESRCSoot gett ‘Comprehensive Accounting Cycle Review Problem ‘Student Name ‘Scott Petty ‘Complete the Comprehensive Problem, beginning on page 2, on the included work papers. ‘Submit the assignment to your instructor AND upload it to your ePortfolio: 4. Submit to your instructor by February 21, 2015 (60 point) 2. Upload to your ePortfolio by April 15” and submit url on Canvas. (20 points) ‘You can complete #1 and skip #2 but you will lose the 20 points. 1-Instructions on how fo submit the assignment to your instructor (60 points): * tumit in during class (if you have an onsite class) ‘* email ito: lynnette,yerbury@sicc edu. Please send it in one file. ‘* Submit via a link on the Canvas home page -best option- ‘© Log into your Canvas account home page for this course © Click on the Submit My Comprehensive Problem link on the bottom of the home page © Click on submit my assignment link in the upper right hand corner © Use the browse button to select the file and submit Be sure and put your name on the assignment and keep a copy. 2:Instructions on how to submit your assignment via your ePortfolio (20 points): ‘* Upload the completed assignment to yourePortfolio Coursework page (copy the page url) ‘Log into your Canvas account home page for this course Click on the Submit My ePortfofio link on the bottom of the home page Click on submit my assignment link in the upper right hand corner Paste the uri page into the box provided and submit 20 points are awarded for submitting your assignment via your ePortfolio according to these instructions Note: This Is the project that lets you know if your level of understanding is where it needs to be to be successful in this course. If you are having great difficulty in completing this then you need to review the content of chapters 2-4 to continue ‘on and have a successful experience. Please give it your best shot! ‘A solution fo this problem is not available for your reference, by design. Its time for you to complete a problem on your own, The following check figures are provided: [Unadjusted Trial Balance $101,920 $102,175 $13,465 $92,260, Post-Closing Trial Balance $92,440