Comprehensive Accounting Cycle Review Problem

Student Name_Jared Alder___________________________

Complete the Comprehensive Problem, beginning on page 2, on the included work papers.
Submit the assignment to your instructor AND upload it to your ePortfolio:
1. Submit to your instructor by February 21, 2015 (60 point)
2. Upload to your ePortfolio by April 15th and submit url on Canvas. (20 points)
You can complete #1 and skip #2 but you will lose the 20 points.
1-Instructions on how to submit the assignment to your instructor (60 points):
turn it in during class (if you have an onsite class)
email it to: [email protected]. Please send it in one file.
Submit via a link on the Canvas home page -best optiono Log into your Canvas account home page for this course
o Click on the Submit My Comprehensive Problem link on the bottom of the home page
o Click on submit my assignment link in the upper right hand corner
o Use the browse button to select the file and submit
Be sure and put your name on the assignment and keep a copy.
2-Instructions on how to submit your assignment via your ePortfolio (20 points):
Upload the completed assignment to yourePortfolio Coursework page (copy the page url)
Log into your Canvas account home page for this course
Click on the Submit My ePortfolio link on the bottom of the home page
Click on submit my assignment link in the upper right hand corner
Paste the url page into the box provided and submit
20 points are awarded for submitting your assignment via your ePortfolio according to these instructions
Note: This is the project that lets you know if your level of understanding is where it needs to be to be successful in this
course. If you are having great difficulty in completing this then you need to review the content of chapters 2-4 to continue
on and have a successful experience. Please give it your best shot!
A solution to this problem is not available for your reference, by design. It is time for you to complete a problem on your own. The
following check figures are provided:
Unadjusted Trial Balance
Adjusted Trial Balance
Net Income
Total Assets
Post-Closing Trial Balance

$101,920
$102,175
$13,465
$92,260
$92,440

Comprehensive Accounting Cycle Review Problem

On December 1st Curt Williamson began an auto repair shop, Williamsons Quality Automotive. The following information about
Decembers transactions, accounts, and adjustment data is available.

Transactions

Dec.

Williamson contributed $50,000 cash to the business in exchange for capital.

1
1

Purchased $10,800 of equipment paying cash.

Paid $4,500 for a 9-month insurance policy starting on December 1.

Paid $18,000 cash to purchase land to be used in operations.

10

Purchased office supplies on account, $3,000.

19

Borrowed $28,000 from the bank for business use. Williamson signed a note payable to the bank in the name of
the business.

22

Paid $800 for advertising expenses.

26
28

Paid $1,000 on account.

The business received a bill for utilities to be paid in January, $280.

31

Revenues earned during the month included $17,500 cash and $2,700 on account.

31

Paid employees' salaries $3,600 and building rent $700. Record as a compound entry.

31

The business received $1,440 for auto screening services to be performed next month.

31

Williamson withdrew cash of $3,000.

Accounts
Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated
Depreciation-Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable;
Williamson, Capital; Williamson, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense;
Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment.
Adjustment Data
a. Office Supplies used during the month, $600.

b. Depreciation for the month, $180.

c. One month insurance has expired.
d. Accrued Interest Expense, $75.

Requirements:
Complete the following on the attached work papers

1. Prepare the journal entries and post to the T-accounts.

2.
3.
4.
5.

Prepare an unadjusted trial balance.

Prepare the adjusting entries and post to the T-accounts.
Prepare an adjusted trial balance.
Prepare the income statement, the statement of owner's equity, and a classified balance sheet. Use proper
formatting techniques including headings, dollar signs, and underlining.

6. Prepare the closing entries and post to the T-accounts.

7. Prepare a post-closing trial balance.

GENERAL JOURNAL
DATE

Dec. 31


31


31


31



Dec. 31


31









31


31

ACCOUNT TITLES AND EXPLANATION

Record Transactions, Adjusting Entries, Closing Entries in this journal
Supplies Expense
Office Supplies
To record office supplies used
Depreciation Expense-Equipment
Accumulated Depreciation-Equipment
To record depreciation expense on equipment
Insurance Expense
Prepaid Insurance
To record insurance expense
Interest Expense
Interest Payable
To accrue interest expense

Service Revenue
Income Summary
To close revenue
Income Summary
Salaries Expense
Rent Expense
Utilities Expense
Advertising Expense
Supplies Expense
Insurance Expense
Interest Expense
Depreciation Expense- Equipment
To close expenses
Income Summary
Williamson, Capital
To close income summary
Williamson, Capital
Withdrawals
To close withdrawals

DEBIT

600


180


500


75



20,200


6,735









13,465


3,000

CREDIT


600


180


500


75



20,200


3,600
700
280
800
600
500
75
180


13,465


3,000

GENERAL JOURNAL

DATE
Dec. 1


1


1


9


10


19


22


26


28


31


31


31



31

ACCOUNT TITLES AND EXPLANATION

Cash
Williamson, Capital
Owner Contribution
Equipment
Cash
Purchased equipment with cash
Prepaid Insurance
Cash
Paid insurance in advance
Land
Cash
Purchased land with cash
Office Supplies
Accounts Payable
Purchased office supplies on account
Cash
Notes Payable
Received cash with note
Advertising Expense
Cash
Paid cash expenses
Accounts Payable
Cash
Paid cash on account
Utilities Expense
Utilities Payable
Accrued utility liability
Cash
Service Revenue
Performed services and received cash
Accounts Receivable
Service Revenue
Performed services on account
Salaries Expense
Rent Expense
Cash
Paid cash expenses
Cash
Unearned Revenue
Collected cash for future services

50,000


10,800


4,500


18,000


3,000


28,000


800


1,000


280


17,500


2,700


3,600
700


1,440


4

DEBIT

CREDIT

50,000


10,800


4,500


18,000


3,000


28,000


800


1,000


280


17,500


2,700



4,300


1,440

GENERAL JOURNAL
31

Williamson, Withdrawals
Cash
Owner Withdrawal

3,000

3,000

GENERAL LEDGER

Cash

Dec.1 50,000 4,500 Dec. 1

Accts. Rec

Office Supplies

Dec. 31 2,700

Dec. 10 3,000 600 Dec. 31

Dec. 19 28,000 18,000 Dec. 9

Prepaid Insurance

Dec. 1 4,500 500 Dec. 31

Dec. 31 17,500 800 Dec. 22

Dec. 31 1,440

1,000 Dec. 26

Bal. 54,540

4,300 Dec. 31
3,000 Dec. 31
10,800 Dec. 1

Equipment

--------------------------------------

----------------------------------- ------------------------------------

Bal. 2,700

Bal. 2,400

Accum. Deprec. Equip.

180 Dec. 31

Bal. 4,000

Land

Accounts Payable

Dec. 9 18,000

Dec. 26 1,000 3,000 Dec.10

Dec. 1 10,800


--------------------------------

------------------------------------

Bal. 10,800

--------------------------------

180 Bal.

----------------------------------

Bal. 18,000

2,000 Bal.

Utilities Payable

Interest Payable

280 Dec. 28

Unearned Revenue

75 Dec. 31

Notes Payable-Williamson

1,440 Dec. 31

28,000 Dec. 19

---------------------------------

---------------------------------

280 Bal.

----------------------------------

75 Bal.

----------------------------------

1,440 Bal.

28,000 Bal.

Capital-Williamson

Withdrawals

Service Revenue

Salaries Expense

Dec. 31 20,200 17,500 Dec. 31

Dec. 31 3,600 3,600 Dec. 31

50,000 Dec. 1

Dec. 31 3,000

13,465 Dec. 31

-------------------------------

60,465 Bal.

Dec. 31 3,000 3,000

2,700 Dec. 31

----------------------------------

-------------------------------

Bal. 0

0 Bal.

--------------------------------
Bal. 0

GENERAL LEDGER

Rent Expense

Dec. 31 700 700 Dec. 31

Utilities Expense

Advertising Expense

Dec. 28 280 280 Dec. 31

Dec. 22 800 800 Dec. 31

Supplies Expense
Dec. 31 600 600 Dec. 31

----------------------------------

---------------------------------

-----------------------------------

----------------------------------

Bal. 0

Bal. 0

Bal. 0

Bal. 0

Insurance Expense

Interest Expense

Depreciation Exp. Equip.

Income Summary

Dec. 31 500 500 Dec. 31

Dec. 31 75 75 Dec. 31

Dec. 31 180 180 Dec. 31

---------------

----------------------------------

----------------------------------

------------------------------

Bal. 0

Bal. 0

Bal. 0

Dec. 31 6,735 20,200 Dec31

13, 465 Dec. 31------------------

0 Bal.

Williamsons Quality Automotive

Unadjusted Trial Balance

Dec. 31, 2014

Account Title

Debits

Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Equipment
Land
Accounts Payable
Utilities Payable
Unearned Revenue
Notes Payable
Capital, Williamson
Withdrawals, Williamson
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Advertising Expense
Total

Credits

$54,540

2,700

3,000

4,500

10,800

18,000


$2,000

280

1,440

28,000

50,000
3,000


20,200
3,600

700

280

800
$101,920
$101,920
=========== ===========
=====
==

Adjusted Trial Balance

Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation- Equipment
Land
Accounts Payable
Utilities Payable
Interest Payable
Unearned Revenue
Notes Payable
Capital, Williamson
Withdrawals
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Advertising Expense
Supplies Expense
Insurance Expense
Interest Expense
Depreciation Expense- Equipment

Debits

$54,540

2,700

2,400

4,000

10,800


180
18,000


$2,000

280

75

1,440

28,000

50,000
3,000


20,200
3,600

700

280

800
600

500

75

180
$102,175
$102,175
=========== ===========
=======
===




























9

Credits

WILLIAMSON QUALITY AUTOMOTIVE

Income Statement

MONTH ENDED DECEMBER 31, 2014

Revenues:
Service Revenue
Expenses:
Salaries Expense
Rent Expense
Utilities Expense
Advertising Expense
Supplies Expense
Insurance Expense
Interest Expense
Depreciation Expense- Equipment
Total Expenses
Net Income:

$20,200


$3,600

700

280

800
600

500

75

180

6,735

13,465

===========

=

WILLIAMSON QUALITY AUTOMOTIVE

Statement of Changes in Owners Equity
Month Ended December 31, 2014
Williamson, Capital, Dec. 1, 2014
Owner contribution
Net Income for the month

Owner Withdrawal
Williamson, Capital, Dec. 31, 2014

$ 0
50,000
13,465
63,465
(3,000)
$60,465
========

10

WILLIAMSON QUALITY AUTOMOTIVE

Balance Sheet

December 31, 2014

Assets
Current Assets:
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Total Current Assets
Plant Assets:
Equipment
Less: Accumulated Depreciation- Equipment
Land
Total Plant Assets:
Total Assets

$ 54,540
2,700
2,400
4,000

$10,800
(180) 10,620
18,000

$63,640




$28,620
$92,260
=======

Liabilities
Current Liabilities:
Accounts Payable
Utilities Payable
Interest Payable
Unearned Revenue
Total Current Liabilities
Long-term Liabilites:
Notes Payable
Total Liabilities

$ 2,000
280
75
1,440

$3,795

28,000
31,795

Owners Equity
Williamson, Capital, Dec. 31, 2014
Total Liabilities and Owners Equity

11

60,465
$92,260
======

WILLIAMSON QUALITY AUTOMOTIVE

Post-Closing Trial Balance

December 31, 2014

Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation- Equipment
Land
Accounts Payable
Utilities Payable
Interest Payable
Unearned Revenue
Notes Payable
Williamson, Capital
Total

Debits

12

Credits

$54,540

2,700

2,400

4,000

10,800


180
18,000


$2,000

280

75

1,440

28,000
60,465
$92,440
$92,440
=========== ===========
===