Student Name: ld No. I. Completing the Accounting Cycle: a. Record all necessari
ID: 2611227 • Letter: S
Question
Student Name: ld No. I. Completing the Accounting Cycle: a. Record all necessaries entries. b. Make all necessaries journals Adjustments Build Adjustment Trial Balance and Adjustment Trial Balance c. d. Prepare all Financials Reports (4 Principals Reports) On December 1, Tim Walker began an auto repair shop, Walker's Quality Automotive. The following transactions occurred during December Dec. 1 Walker contributed $48,000 cash to the business in exchange for shares of common stock 1 Purchased $10,000 of equipment paying cash. Paid $1,500 for a 4-month insurance policy starting on December 1 9 Paid $20,000 cash to purchase land to be used in operations 10 Púrchased office supplies on account, $2,400 19 Borrowed $15,000 from the bank for business use. Waker signed a note payable to the bank in the name of the corporation Paid $1,300 for advertising expenses 22 26 Paid $600 on account. 28 31 The business received a bill for utilities to be paid in January, $240 Revenues earned during the month included $16,500 cash and $2,800 on account. 31 Paid employees' salaries $3,500 and building rent $1,000. Record as a 31 The business received $1,140 for auto screening services to be performed next 31 Cash diidends of $5,000 were paid to stockholders compound entry month Page 1 2 a +Explanation / Answer
Date
Account Titles
Debit
Credit
Dec 1
Cash
48000
Walker, Capital
48000
1
Equipment
10000
Cash
10000
1
Prepaid Insurance
1600
Cash
1600
9
Land
20000
Cash
20000
10
Office Supplies
2400
Accounts Payable
2400
19
Cash
15000
Notes Payable
15000
22
Advertising Expenses
1300
Cash
1300
26
Accounts Payable
600
Cash
600
28
Utilities Expense
240
Utilities Payable
240
31
Cash
16500
Accounts Receivable
2800
Service Revenue
19300
31
Salaries Expense
3500
Rent Expense
1000
Cash
4500
31
Cash
1140
Unearned Revenue
1140
31
Walker, Withdrawals
5000
Cash
5000
Date
Account Titles
Debit
Credit
Dec 1
Cash
48000
Walker, Capital
48000
1
Equipment
10000
Cash
10000
1
Prepaid Insurance
1600
Cash
1600
9
Land
20000
Cash
20000
10
Office Supplies
2400
Accounts Payable
2400
19
Cash
15000
Notes Payable
15000
22
Advertising Expenses
1300
Cash
1300
26
Accounts Payable
600
Cash
600
28
Utilities Expense
240
Utilities Payable
240
31
Cash
16500
Accounts Receivable
2800
Service Revenue
19300
31
Salaries Expense
3500
Rent Expense
1000
Cash
4500
31
Cash
1140
Unearned Revenue
1140
31
Walker, Withdrawals
5000
Cash
5000