Project 1 Principles of Financial Accounting BUA 201 Fall 2016 Akono Source

Project 1 principles of financial accounting bua 201

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Project #1 – Principles of Financial Accounting (BUA 201) – Fall 2016 [Akono] Source : Financial Accounting (Spiceland, Thomas, and Herrmann 2015) . pg. 8
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Legal Fees Expense Advertising Expense Miscellaneous Expense Salary Expense Project #1 – Principles of Financial Accounting (BUA 201) – Fall 2016 [Akono] Source : Financial Accounting (Spiceland, Thomas, and Herrmann 2015) . pg. 9
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ATTACHMENT C : Trial balance worksheet (3 pts). Great Adventures, Inc. Trial balance As of December 31, 2018 Account Name Debit Credit Cash 64,200 Office Supplies 1,800 Racing Supplies 2,800 Prepaid Insurance 4,800 Prepaid Rent 2,400 Equipment (Bikes) 12,000 Equipment (Kayaks) 28,000 Accounts Payable 2,800 Notes Payable 30,000 Unearned Service Revenue 0 Common Stock 20,000 Retained Earnings 0 Dividends 4,000 Biking Clinic Revenue 4,300 Kayak Clinic Revenue 17,500 Rock-Climbing Clinic Revenue 13,200 Orienteering Clinic Revenue 17,900 Adventure Race Revenue 20,000 Legal Fees Expense 1,500 Advertising Expense 1,000 Miscellaneous Expense 1,200 Salaries Expense 2,000 Total: 125,700 125,700 Project #1 – Principles of Financial Accounting (BUA 201) – Fall 2016 [Akono] Source : Financial Accounting (Spiceland, Thomas, and Herrmann 2015) . pg. 10
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REQUIREMENT 2 (20 PTS) D. Record adjusting entries on December 31. Use Attachment D to record the entries. E. Post all adjusting entries to the T-accounts provided in Attachment E. F. Prepare an adjusted trial balance at December 31, 2018 using the format presented in Attachment F. Adjusting entries : The following information relates to adjusting entries as of December 31, 2018. 12/31 Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000. 12/31 Six months’ worth of insurance has expired. 12/31 Four months’ worth of rent has expired. 12/31 Of the $1,800 of office supplies purchased on July 4, $300 remains on hand. 12/31 Interest expense on the $30,000 loan obtained from the city council should be recorded. 12/31 Of the $2,800 of racing supplies purchased on December 12, $200 remains on hand. 12/31 Suzie calculates that the company owes $14,000 in income taxes. ATTACHMENT D (7 PTS) Great Adventures, Inc. – Adjusting Entries Journal Dat e Account Name Effects on the accounti ng equation Debit Credit 12/ 31 AJE Depreciation Expense (-SE) 8,000 Accumulated Depreciation (-A) 8,000 12/ 31 AJE Insurance Expense (-SE) 2,400 Prepaid Insurance (-A) 2,400 12/ 31 AJE Rent Expense (-SE) 800 Prepaid Rent (-A) 800 12/ 31 AJE Office Supplies Expense (-SE) 1,500 Office Supplies (-A) 1,500 12/ 31 AJE Interest Expense (-SE) 750 Interest Payable (+L) 750 Project #1 – Principles of Financial Accounting (BUA 201) – Fall 2016 [Akono] Source : Financial Accounting (Spiceland, Thomas, and Herrmann 2015) . pg. 11
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12/ 31 AJE Racing Supplies Expense (-SE) 2,600 Racing Supplies (-A) 2,600 12/ 31 AJE Income Tax Expense (-SE) 14,000 Income Tax Payable (+L) 14,000 Project #1 – Principles of Financial Accounting (BUA 201) – Fall 2016 [Akono] Source : Financial Accounting (Spiceland, Thomas, and Herrmann 2015) . pg. 12
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ATTACHMENT E : Post adjusting journal entries to T-accounts (7 pts).
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