Fundamentals of Accounting

Vipinosa, Yvone K
Seat work 6

Chart of Accounts
Account Account Title
No.
110 Cash
120 Accounts Receivable
130 Fees Receivable
140 Supplies
150 Office Equipment
155 Accumulated Depreciation
210 Accounts Payable
220 Salaries Payable
310 Detoya, Capital
320 Detoya, Withdrawals
330 Income Summary
410 Consulting Revenues
510 Salaries Expense
520 Supplies Expense
530 Rent Expense
540 Depreciation Expense

Journal Entry
Account
Date Account Title/Description Debit Credit
No.
2014
Dec. 1 Cash 110 150,000
Detoya, Capital 310 150,000
To record initial investment of the owner

2 Rent Expense 530 8,000

Cash 110 8,000
To record payment of rent for the month

Supplies 140 7,200

Accounts Payable 210 7,200
To record purchased supplies on account

3 Office Equipment 150 75,000

Cash 110 37,000
Accounts Payable 210 38,000
To record purchased of office equipment on cash
and balance

8 Accounts Payable 210 7,200

Cash 110 7,200
To record payment of supplies on account
 14 Salaries Expense 510 6,000
Cash 110 6,000
To record payment of salaries to assistant

20 Cash 110 20,000

Consulting
410 20,000
Revenues
To record consulting services performed

28 Salaries Expense 510 6,000

Cash 110 6,000
To record payment of salaries to assistant

30 Accounts Receivable 120 48,000

Consulting
410 48,000
Revenues
To record billed consulting services performed

31 Detoya, Withdrawals 320 12,000

Cash 110 12,000
To record withdrawal of the owner

Worksheet
Current Transactions Adjustments
Account No. Account Title Debit Credit Debit Credit
110 Cash 170,000 76,200
120 Accounts Receivable 48,000 -
130 Fees Receivable - - d. 10,000
140 Supplies 7,200 - a. 2,500
150 Office Equipment 75,000 -
155 Accumulated Depreciation - - c. 800
210 Accounts Payable 7,200 45,200
220 Salaries Payable - - b. 1,800
310 Detoya, Capital - 150,000
320 Detoya, Withdrawals 12,000 -
330 Income Summary - -
410 Consulting Revenues - 68,000 d. 10,000
510 Salaries Expense 12,000 - b. 1,800
520 Supplies Expense - - a. 2,500
530 Rent Expense 8,000 -
540 Depreciation Expense - - c. 800
Total 339,400 339,400 15,100 15,100

Adjusted Trial
Income Statement Balance Sheet
Balance
Debit Credit Debit Credit Debit Credit
93,800 93,800
48,000 48,000
10,000 10,000
4,700 4,700
75,000 75,000
 800 800
38,000 38,000
1,800 1,800
150,000 150,000
12,000 12,000
- -
78,000 78,000
13,800 13,800
2,500 2,500
8,000 8,000
800 800
268,600 268,600 25,100 78,000 243,500 190,600
52,900 52,900
78,000 78,000 243,500 243,500

Net Income
Total

Income Statement

Edgar Detoya, Tax Consultant

Income Statement
For the Month Ended December 31,2014

Revenue
s
Consulting Revenues 78,000

Less:
Expenses
Salaries Expense 13,800
Supplies Expense 2,500
Rent Expense 8,000
Depreciation Expense 800
Total (25,100)
Net
52,900
Income

Statement of Changes in Equity

 Edgar Detoya, Tax Consultant
Statement of Changes in Equity
For the Month Ended December 31, 2014

Detoya,
Capital, Beg. 150,000
Dec. 1, 2014
Add: Additional Investment
Net Income 52,900 52,900
Total 202,900
Less: Withdrawals -12,000
Detoya,
Capital, End. 190,900
Dec. 31, 2014

Balance Sheet
Edgar Detoya, Tax Consultant
Statement of Financial Position
December 31, 2014

Assets
Current Assets
Cash 93,800
Accounts Receivable 48,000
Fees Receivable 10,000
Supplies 4,700
Total Current Assets 156,500

Noncurrent Assets
Office Equipment 75,000
Less: Accumulated Depreciation -800
Total Noncurrent Assets 74,200
Total Assets 230,700

Liabilities
Current Liabilities
Accounts Payable 38,000
Salaries Payable 1,800
Total Current Liabilities 39,800

Owner's Equity
Detoya, Capital, End, Dec. 31, 2014 190,900
Total Liabilities and Owner's Equity 230,700
Cash Flows
Edgar Detoya, Tax Consultant
Statement of Cash Flows
For the Month Ended December 31, 2014

CASH FLOW FROM OPERATIONS

Net Income 52,900
Depreciation Expense 800
Increase in Accounts Receivable 48,000
Increase in Fees Receivable 10,000
Increase in Supplies 4,700 -62,700
Increase in Salaries Payables 1,800
Net Cash from Operations (7,200)
CASH FLOW FROM INVESTING
Purchase of Office Equipment -37,000
Net Cash from Investing -37,000
CASH FLOW FROM FINANCING
Investment from Owner 150,000
Withdrawals from Owner -12,000
Net Cash from Financing 138,000
Net Increase (Decrease in Cash) 93,800
Cash, 12/01/14
Cash, 12/31/14 93,800
Journalize and Post Adjusting and Closing Entries

Date Account Titles and Explanation P.R. Debit Credit

2014
Dec 31 Supplies Expense 520 4,700
Supplies 140 4,700

31 Salaries Expense 510 1,800

Salaries Payable 220 1,800

31 Depreciation Expense 540 800

Accumulated Depreciation 155 800

31 Fees Receivable 130 10,000

Consulting Revenues 410 10,000

Closing Entries
1. Income Accounts
2014
Dec 31 Consulting Revenues 410 78,000
Income Summary 330 78,000

2. Expense Accounts
2014
Dec 31 Income Summary 330 25,100
Salaries Expense 510 13,800
Supplies Expense 520 2,500
Rent Expense 530 8,000
Depreciation Expense 540 800

3. Income Summary Account

2014
Dec 31 Income Summary 330 52,900
 Detoya, Capital 310 52,900

4. Withdrawal Account
2014
Dec 31 Detoya, Capital 310 12,000
Detoya, Withdrawals 320 12,000

Post-Closing Trial Balance

Edgar Detoya, Tax Consultant

Post-Closing Trial Balance
December 31, 2014
Accoun Account Title Debit Credit
t
No.
110 Cash 93,800
120 Accounts Receivable 48,000
130 Fees Receivable 10,000
140 Supplies 4,700
150 Office Equipment 75,000
155 Accumulated Depreciation 800
210 Accounts Payable 38,000
220 Salaries Payable 1,800
310 Detoya, Capital 190,900
Total 231,500 231,500

Reversing Entries

2014
Dec 31 Supplies 140 4,700
Supplies Expense 520 4,700

2014
Dec 31 Salaries Payable 220 1,800
Salaries Expense 510 1,800

2014
Dec 31 Consulting Revenues 410 10,000
Fees Receivable 130 10,000