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#1 PROJECT -THE COMPLETE ACCOUNTING CYCLE Due: End of day, Sunday, Week #3. Name: Anthony Arostegui 50 points MAKE SURE TO COMPLETE ALL 10 REQUIREMENTS WHICH ARE LISTED UNDER THREE SEPERATE TABS During its first month of operation, the Rawls Repair Corporation, which specializes in bicycle repairs, completed the following transactions: Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value common stock. Paid the premium on a one-year insurance policy, $1,200. Paid the current month's rent, $1,040. Purchased repair equipment from Conklin Company, $4,400. The terms were $600 down and $200 per month for nineteen months. The first payment is due November 1. Purchased repair supplies from McKenna Company on credit, $390. Paid utility bill for October, $154. Cash bicycle repair revenue for the first half of October, $1,362. Made payment to McKenna Company, $200. Cash bicycle repair revenue for the last half of October, $1,310. Declared and paid cash dividend of $800. Oct. 1 Oct. 1 Oct. 3 Oct. 8 Oct. 12 Oct. 16 Oct. 19 Oct. 31 Oct. 31 REQUIREMENT #1: Prepare journal entries to record the October transactions in the General Journal below. General Journal Description(Account Name) Cash Common Stock Issued common stock. Prepaid Insurance Cash Prepaid for monthly insurance. Store Rent Expense Cash Date Oct. 1 Debit Credit $ 12,000 $ 12,000 Oct. 1 $ 1,200 $ 1,200 Oct. 1 $ 1,040 $ 1,040 Paid cash for rent. Oct. 3 Repair Equipment Cash Account Payable Prepaid repair equipment $ 4,400 $ 600 $ 3,800 ny Arostegui Project #1 (Continued) Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. $1,200/12 = $100 b) The remaining inventory of repair supplies is $194. $390-$194 = $196 c) The estimated depreciation on repair equipment is $70. d) The estimated income taxes are $40. Date Oct. 31 General Journal Description(Account Name) Insurance Expense Prepaid Insurance To record insurance expense Repair Supplies Expense Repair Supplies To record repair supplies expense Depreciation Expense - Repair Equipment Accumulated Depreciation - Repair Equipment To record depreciation expense Income Taxes Expense Income Taxes Payable To record income taxes expense Debit Credit $ 100 $ 100 Oct. 31 $ 196 $ 196 Oct. 31 $ 70 $ 70 Oct. 31 $ 40 $ 40 Requirement #5: Post your adjustments to the T-accounts and compute adjusted balances. Note: use the T-accounts located under the "Jes, T-accts, Trial Balance tab at the bottom of the screen (just add to the October T-accts). Requirement Prepare #6: an Adjusted Trial Balance in the space below. Rawls Repair Corporation Adjusted Trial Balance October 31 Cash Prepaid Insurance Repair Supplies Repair Equipment Accum. Depr.-Repair Equip. Accounts Payable Income Taxes Payable Common Stock Dividends Bicycle Repair Revenue Store Rent Expense Utility Expense Insurance Expense Repair Supplies Expense Depr. Exp.-Repair Equipment Income Taxes Expense $ $ $ $ 10,678 1,100 194 4,400 $ $ $ $ 70 3,990 40 12,000 2,672 $ $ $ $ $ $ $ $ 800 $ 1,040 154 100 196 70 40 18,772 $ 18,772 Requirement #7: Open the "Financial Statements, Closing" tab at the bottom of the screen to complete this requirement n to complete Project #1 (continued) Requirement #7: Prepare the financial statements for Rawls Repair Corporation as of October 31 in the space below. Rawls Repair Corporation Income Statement For the Month Ending October 31 Revenues: Bicycle Repair Revenue Expenses: Store Rent Expense Utility Expense Insurance Expense Repair Supplies Exp. Depreciation Exp. Income Taxes Exp. Total Expenses Net Income Rawls Repair Corporation Statement of Retained Earnings For the Month Ending October 31 Retained Earnings, October 1 Add: Net Income Less: Dividends Retained Earnings, October 31 $ $ 1,072 $ 1,072 $ 800 $ 272 $ $ $ $ $ $ $ 1,040 154 100 196 70 40 $ $ 2,672 1,600 1,072 Rawls Repair Corporation Balance Sheet October 31 Rawls Repair Corporation Statement of Cash Flows For the Month Ending October 31 Requirement #8: Prepare the closing entries at October 31 in the General Journal below. Hint: use the balances for each account which appear on the Adjusted Trial Balance for your closing entries. General Journal Description (Account Name) Bicycle Repair Revenue Retained Earnings Retained Earnings Store Rent Expense Utility Expense Insurance Expense Repair Supplies Expense Depreciation Expense Income Taxes Expense Retained Earnings Dividends g October 31 Date Oct. 31 Debit Credit $ 2,672 $ 2,672 $ 1,600 $ $ $ $ $ $ $ 800 $ 800 1,040 154 100 196 70 40 Oct. 31 Oct. 31 Requirement #9: Post the closing entries to the T-accounts (located under the "Jes, T-accts, Trial Balance tab" and compute ending balances. Just add to the adjusted balances already listed. g October 31 Requirement #10: Prepare a post-closing trial balance as of October 31 in the space below. Rawls Repair Corporation Post-Closing Trial Balance October 31 Cash Prepaid Insurance Repair Supplies Repair Equipment Accum. Depr.-Repair Equip. Accounts Payable Income Taxes Payable Common Stock Retained Earnings $ $ $ $ 10,678 1,100 194 4,400 $ $ $ $ $ $ 16,372 $ 70 3,990 40 12,000 272 16,372 ... View Full Document

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