View the step-by-step solution to:

COMPREHENSIVE PROBLEM ASSIGNMENT The Complete Accounting Cycle Paul Hooke owns Answer and Message Center. The post-closing trial balance as of...

Paul Hooke owns Answer and Message Center. The post-closing trial balance as of December 31, 2009, is shown below. Table
ANSWER AND MESSAGE CENTER
Trial Balance
December 31 2009
Account Title
Debit
Credit
Cash
$ 960
Accounts Receivable
2,860
Prepaid Insurance
620
Supplies Inventory
225
Equipment
12,700
Accumulated Depreciation - Equipment
$ 4250
Accounts Payable
780
Interest Payable
220
Payable on Equipment Loan
8350
P. Hooke, Capital
Totals
$17,365
3,765
$17365
Transactions completed during 2010 are as shown here.
1. Phone answering fees were $14,800 in cash and $3,010 on account for the year.
2. Message services fees totalled $13,140 for the year; $8,240 of that was in cash and the remainder was on account
3. Supplies costing $140 were purchased on account
4. On June 20, 2010, the company paid $2,115 on the equipment loan and $429 on accrued interest. Of the $429, $220 was accrued interest in 2009 and the remainder was for accrued interest in the first half of 2010
5. $2,170 in salaries were paid
6. Prepaid insurance on the equipment was $320
7. Telephone expense of $1,860 was paid
8. Accounts receivable of $3,530 were collected
9. Paul Hooke withdrew $12,800 for personal use.
10. Paid $750 on accounts payable
The following should be used for making adjusting entries.
a) A physical count of the supplies showed that $125 had been used during the year
b) Accrued interest on the note payable is $155.
c) Insurance costing $520 expired during the year.
d) Depreciation on the equipment was $1600.
e) The December telephone bill of $170 has not been paid or recorded
Required:
A. Open T accounts for each of the accounts listed below. Insert beginning balances from the post-closing trial balance.
100 Cash 105 Accumulated Depreciation – Equipment
101 Accounts Receivable 200 Accounts Payable
102 Prepaid Insurance 201 Interest Payable
103 Supplies Inventory 202 Telephone Expense Payable
104 Equipment ` 500 Salary Expense
203 Payable on Equipment Loan 501 Telephone Expense
300 P. Hooke Capital 502 Supplies Expense
301 P. Hooke, Drawing 503 Insurance Expense
350 Income Summary 504 Depreciation Expense
400 Answering Service Fees 505 Interest Expense
401 Message Service Fees
B. Prepare journal entries to record the transactions completed in 2010
C. Post the entries to the T accounts
D. Prepare a 10-column worksheet
E. Prepare an income statement, a statement of changes in owner’s equity, and an unclassified balance sheet.
F. Journalize and post the adjusting entries
G. Journalize and post the closing entries
H. Prepare a post-closing trial balanc

COMPREHENSIVE PROBLEM ASSIGNMENT The Complete Accounting Cycle Paul Hooke owns Answer and Message Center. The post-closing trial balance as of December 31, 2009, is shown below. Table ANSWER AND MESSAGE CENTER Trial Balance December 31 2009 Account Title Debit Credit Cash $ 960 Accounts Receivable 2,860 Prepaid Insurance 620 Supplies Inventory 225 Equipment 12,700 Accumulated Depreciation - Equipment $ 4250 Accounts Payable 780 Interest Payable 220 Payable on Equipment Loan 8350 P. Hooke, Capital Totals $17,365 3,765 $17365 Transactions completed during 2010 are as shown here. 1. Phone answering fees were $14,800 in cash and $3,010 on account for the year. 2. Message services fees totalled $13,140 for the year; $8,240 of that was in cash and the remainder was on account 3. Supplies costing $140 were purchased on account 4. On June 20, 2010, the company paid $2,115 on the equipment loan and $429 on accrued interest. Of the $429, $220 was accrued interest in 2009 and the remainder was for accrued interest in the first half of 2010
Background image of page 1
5. $2,170 in salaries were paid 6. Prepaid insurance on the equipment was $320 7. Telephone expense of $1,860 was paid 8. Accounts receivable of $3,530 were collected 9. Paul Hooke withdrew $12,800 for personal use. 10. Paid $750 on accounts payable The following should be used for making adjusting entries. a) A physical count of the supplies showed that $125 had been used during the year b) Accrued interest on the note payable is $155. c) Insurance costing $520 expired during the year. d) Depreciation on the equipment was $1600. e) The December telephone bill of $170 has not been paid or recorded Required: A. Open T accounts for each of the accounts listed below. Insert beginning balances from the post-closing trial balance. 100 Cash 105 Accumulated Depreciation – Equipment 101 Accounts Receivable 200 Accounts Payable 102 Prepaid Insurance 201 Interest Payable 103 Supplies Inventory 202 Telephone Expense Payable 104 Equipment ` 500 Salary Expense 203 Payable on Equipment Loan 501 Telephone Expense 300 P. Hooke Capital 502 Supplies Expense 301 P. Hooke, Drawing 503 Insurance Expense 350 Income Summary 504 Depreciation Expense 400 Answering Service Fees 505 Interest Expense 401 Message Service Fees B. Prepare journal entries to record the transactions completed in 2010 C. Post the entries to the T accounts D. Prepare a 10-column worksheet
Background image of page 2
Show entire document

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question