Assignment #3-The Accounting Cycle in Review This assignment is out of 101 marks
ID: 2555817 • Letter: A
Question
Assignment #3-The Accounting Cycle in Review This assignment is out of 101 marks and is weighted 15% of your final grade. Comprehensive Question- Jerry's Mobile Car Wash Jerry Fish opened Jerry's Mobile Car Wash on Sept 1, 2017. In Sept, the following transactions were completed. Invested $14.000 cash in the business Purchased a used truck for $26,400, paying $6,400 cash and signing a note payable for the balance Collected $3,000 from XYZ for their car cleaning needs for Sept, and Nov Purchased cleaning supplies on account for $850 Paid $1,800 on a Billed customers $3,800 for cleaning services Paid $400 of amount owed on cle Paid $1,600 for employee's salaries Collected $1,400 from customers billed on Sept 12 Billed customers for $3,000 for cleaning services Paid gas and oil for the month on the truck $350 Withdrew $1,600 to ar insurance effective 12 18 20 21 25 30 30 lies rsonal taxes Additional Information 1. Annual payments of $2,000 are required on the note Required 1. Journalize and post the Sept transactions. Jerry,s Mobile Car Wash records al prepaid expenses and unearned revenues as assets and liabilities 2. Prepare an unadjusted trial balance at Sept 30, 2017 3. Journalize and post the following adjustments a. Earned and unbilled fees at Sept 30, 2017 were $1,500 b. The truck has an estimated useful life of four years and no residual value c. The insurance policy is effective Sept 1, 2017 and expires on August 31 2018 d. An inventory count shows $375 of cleaning supplies on hand at Sept 30, 2017 e. At Sept 30, 2017, $1,000 of the fees collected in advance have been earned. f. Accrued but unpaid employee salaries were $400 g. The note payable has a 6% annual interest rate 4. Prepare an adjusted trial balance at Sept 30, 2017Explanation / Answer
UNADJUSTED TRIAL BALANCE
ADJUSTING ENTRIES
ADJUSTED TRIAL BALANCE AS ON 30 SEPTEMBER 2017
CLOSING ENTRIES
INCOME STATEMENT FOR THE
STATEMENT OF OWNERS EQUITY
BALANCE SHEET AS ON 30TH SEPTEMBER 2017
DATE TITLES AND TRANSACTIONS DEBIT CREDIT SEP 1 CASH 14000 COMMON STOCK 14000 SEP 1 TRUCK 26400 CASH 6400 NOTE PAYABLE 20000 SEP 1 CASH 3000 UNEARNED REVENUE 3000 SEP 3 SUPPLIES 850 ACCONTS PAYABLE 850 SEP 5 PREPAID INSURANCE 1800 CASH 1800 SEP 12 ACCOUNTS RECEIVABLE 3800 SERVICE REVENUE 3800 SEP 18 ACCOUNTS PAYABLE 400 CASH 400 SEP 20 SALARIES EXPENSES 1600 CASH 1600 SEP 21 CASH 1400 ACCOUNTS RECIEVABLE 1400 SEP 25 ACCOUNTS RECIEVABLE 3000 SERVICE REVENUE 3000 SEP 30 GAS & OIL EXPENSES 350 CASH 350 SEP 30 DRAWINGS 1600 CASH 1600