Accounting Comprehensive Problem 1 | ASSIGNMENT HELP

ANSWER ALL QUESTIONS IN FIELD: READ CAREFULLY PLEASE LABEL EACH QUESTION

Question 1

Classifying Accounts

Balances for each of the following accounts appear in an adjusted trial balance. Identify each as an asset, liability, revenue, or expense.

1.  Accounts Receivable
2.  Equipment
3.  Fees Earned
4.  Insurance Expense
5.  Land
6.  Prepaid Rent
7.  Rent Revenue
8.  Salary Expense
9.  Salary Payable
10.  Supplies
11.  Unearned Rent
12.  Wages Payable

Question 2

Financial Statements from the End-of-Period Spreadsheet

Elliptical Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended June 30, 2019:

	Elliptical Consulting
	End-of-Period Spreadsheet
	For the Year Ended June 30, 2019
	Unadjusted					Adjusted
	Trial Balance	Adjustments	Trial Balance
Account Title	Dr.	Cr.		Dr.		Cr.	Dr.	Cr.
Cash	27,000						27,000
Accounts Receivable	53,500						53,500
Supplies	3,000				(a)	2,100	900
Office Equipment	30,500						30,500
Accumulated Depreciation		4,500			(b)	1,500		6,000
Accounts Payable		3,300						3,300
Salaries Payable					(c)	375		375
Jayson Neese, Capital		82,200						82,200
Jayson Neese, Drawing	2,000						2,000
Fees Earned		60,000						60,000
Salary Expense	32,000		(c)	375			32,375
Supplies Expense			(a)	2,100			2,100
Depreciation Expense			(b)	1,500			1,500
Miscellaneous Expense	2,000						2,000
	150,000	150,000		3,975		3,975	151,875	151,875

Based on the preceding spreadsheet, prepare an income statement for Elliptical Consulting.

Elliptical Consulting
Income Statement
For the Year Ended June 30, 2019
		$
Expenses:
	$
Total expenses
		$

Based on the preceding spreadsheet, prepare a statement of owner’s equity for Elliptical Consulting.

Elliptical Consulting
Statement of Owner’s Equity
For the Year Ended June 30, 2019
		$
	$
		$

Based on the preceding spreadsheet, prepare a balance sheet for Elliptical Consulting.

Elliptical Consulting
Balance Sheet
June 30, 2019
Assets
Current assets:
	$
Total current assets		$
Property, plant, and equipment:
	$
Total property, plant, and equipment
Total assets		$
Liabilities
Current liabilities:
	$
Total liabilities		$
Owner’s Equity
Total liabilities and owner’s equity		$

Question 3:

Income Statement; Net Loss

The following revenue and expense account balances were taken from the ledger of Wholistic Health Services Co. after the accounts had been adjusted on February 28, 2019, the end of the fiscal year:

Depreciation Expense	$7,500
Insurance Expense	3,000
Miscellaneous Expense	8,150
Rent Expense	54,000
Service Revenue	448,400
Supplies Expense	2,750
Utilities Expense	33,900
Wages Expense	360,000

Prepare an income statement. Use a minus sign to indicate a net loss.

Wholistic Health Services Co.
Income Statement
For the Year Ended February 28, 2019
		$
Expenses:
	$
Total expenses

Question 4:

Statement of Owner’s Equity

Apex Systems Co. offers its services to residents in the Seattle area. Selected accounts from the ledger of Apex Systems Co. for the fiscal yearended December 31, 2019, are as follows:

Bart Nesbit, Capital		Bart Nesbit, Drawing
Dec. 31	90,000	Jan. 1 (2019)	1,375,000		Mar. 31	22,500	Dec. 31	90,000
		Dec. 31	355,000		June 30	22,500
					Sept. 30	22,500
					Dec. 31	22,500

Prepare a statement of owner’s equity for the year.

Apex Systems Co.
Statement of Owner’s Equity
For the Year Ended December 31, 2019
		$
	$
		$

Question 5:

Balance Sheet Classification

At the balance sheet date, a business owes a mortgage note payable of $375,000, the terms of which provide for monthly payments of $1,250.

How should the liability be classified on the balance sheet?

Current liability: $ Long-term liability: $

Question 6:

Balance Sheet

Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of selected accounts from the ledger of Optimum Weight Loss Co. are as follows:

Accounts Payable	$37,700
Accounts Receivable	116,750
Accumulated Depreciation – Equipment	186,400
Cash	?
Equipment	474,150
Land	300,000
Prepaid Insurance	7,200
Prepaid Rent	21,000
Salaries Payable	9,000
Cheryl Viers, Capital	710,300
Supplies	4,800
Unearned Fees	18,000

Prepare a classified balance sheet that includes the correct balance for Cash.

Optimum Weight Loss Co.
Balance Sheet
November 30, 2019
Assets
Current assets:
		$
Total current assets			$
Property, plant, and equipment:
		$
	$
Total property, plant, and equipment
Total assets			$
Liabilities
Current liabilities:
		$
Total liabilities			$
Owner’s Equity
Total liabilities and owner’s equity			$

Question 7:

Closing Entries

Prior to closing, total revenues were $12,840,000 and total expenses were $9,975,000.

During the year, the owner made no additional investments and withdrew $630,000. After the closing entries, how much did the owner’s capital account change?

$

Question 8:

Post-Closing Trial Balance

An accountant prepared the following post-closing trial balance:

La Casa Services Co. Post-Closing Trial Balance March 31, 2019
	Debit Balances	Credit Balances
Cash	46,540
Accounts Receivable	122,260
Supplies			4,000
Equipment			127,200
Accumulated Depreciation – Equipment	33,600
Accounts Payable	52,100
Salaries Payable			6,400
Unearned Rent	9,000
Sonya Flynn, Capital	198,900
	462,400		137,600

Prepare a corrected post-closing trial balance. Assume that all accounts have normal balances and that the amounts shown are correct. If an amount box does not require an entry, leave it blank.

La Casa Services Co.
Post-Closing Trial Balance
March 31, 2019
	Debit Balances	Credit Balances
Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Salaries Payable
Unearned Rent
Sonya Flynn, Capital

Question 9:

Working Capital and Current Ratio

The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.:

	December 31
	Year 2	Year 1
Current assets	$1,498,763		$1,549,399
Current liabilities	478,810		421,627

a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round “current ratio” answers to two decimal places.

	December 31
	Year 2	Year 1
Working capital	$	$
Current ratio

b. What conclusions concerning the companys ability to meet its financial obligations can you draw from part (a)? Under Armour’s working capital   by $ during Year 2. The current ratio   in Year 2. Because year 2’s current ratio indicates a   liquidity position, the short-term creditors   concerned about receiving payment from Under Armour.

Question 10:

Appendix: Adjustment Data on an End-of-Period Spreadsheet

Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the following end-of-period spreadsheet for the year ended October 31, 2019. In addition, the data for year-end adjustments are as follows:

a. Fees earned, but not yet billed, $13.

b. Supplies on hand, $4.

c. Insurance premiums expired, $10.

d. Depreciation expense, $3.

e. Wages accrued, but not paid, $1.

Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. If a box does not require an entry, leave it blank.

Alert Security Services Co.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2019
Account Title	Unadjusted Trial Balance Debit	Unadjusted Trial Balance Credit	Adjustments Debit	Adjustments Credit	Adjusted Trial Balance Debit	Adjusted Trial Balance Credit
Cash	12
Accounts Receivable	90
Supplies	8
Prepaid Insurance	12
Land	190
Equipment	50
Accum. Depr.-Equipment		4
Accounts Payable		36
Wages Payable		0
Brenda Schultz, Capital		260
Brenda Schultz, Drawing	8
Fees Earned		200
Wages Expense	110
Rent Expense	12
Insurance Expense	0
Utilities Expense	6
Supplies Expense	0
Depreciation Expense	0
Miscellaneous Expense	2
Totals	500	500

Question 11:

Identify Journals

Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the journal in which each of the following transactions should be recorded:?

	from the list.
a.  Receipt of cash refund from overpayment of taxes.
b.  Adjustment to record accrued salaries at the end of the year.
c.  Providing services on account.
d.  Investment of additional cash in the business by the owner.
e.  Receipt of cash on account from a customer.
f.  Receipt of cash for rent.
g.  Receipt of cash from sale of office equipment.
h.  Sale of used office equipment on account, at cost, to a neighboring business.
i.  Closing of drawing account at the end of the year.
j.  Providing services for cash.

Question 12:

Prepare Journal Entries in a Revenue Journal

Horizon Consulting Company had the following transactions during the month of October:

Oct. 2.	Issued Invoice No. 321 to Pryor Corp. for services rendered on account, $595.
Oct. 3.	Issued Invoice No. 322 to Armor Inc. for services rendered on account, $310.
Oct. 14.	Issued Invoice No. 323 to Pryor Corp. for services rendered on account, $205.
Oct. 24.	Issued Invoice No. 324 to Rose Co. for services rendered on account, $850.
Oct. 29.	Collected Invoice No. 321 from Pryor Corp.

a.  Record the October revenue transactions for Horizon Consulting Company in the following revenue journal format:

REVENUE JOURNAL
DATE	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
Oct. 2
Oct. 3
Oct. 14
Oct. 24
Oct. 31

b.  What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for October?

Accounts receivable	$
Fees earned	$

c.  What is the October 31 balance of the Pryor Corp. customer account assuming a zero balance on October 1? $

Question 13:

Accounts Receivable Subsidiary Ledger

The revenue journal and cash receipts journal for Polaris Productions Inc. follow. The accounts receivable control account has a January 1, 20Y4, balance of $3,790 consisting of an amount due from Clear Pointe Studios Inc.

REVENUE JOURNAL	Page 16
Date	Invoice No.	Account Debited	Post Ref.	Accounts Rec. Dr. Fees Earned Cr.
20Y4
Jan. 6	1	Echo Broadcasting Co.	✔	2,300
Jan. 14	2	Gold Coast Media Inc.	✔	5,100
Jan. 22	3	Echo Broadcasting Co.	✔	2,980
Jan. 25	4	Clear Pointe Studios Inc.	✔	1,650
Jan. 29	5	Amber Communications Inc.	✔	3,650
Jan. 31				15,680
				(12)(41)

CASH RECEIPTS JOURNAL	Page 36
Date	Account Credited	Post Ref.	Fees Earned Cr.	Accounts Rec. Cr.	Cash Dr.
20Y4
Jan. 6	Clear Pointe Studios Inc.	✔	—		3,790		3,790
Jan. 11	Fees Earned		3,200				3,200
Jan. 18	Echo Broadcasting Co.	✔	—		2,300		2,300
Jan. 28	Gold Coast Media Inc.	✔	—		5,100		5,100
Jan. 31			3,200		11,190		14,390
			(41)		(12)		(11)

Prepare a listing of the accounts receivable customer balances and verify that the total agrees with the ending balance of the accounts receivable controlling account. If an amount is zero, enter “0”.

Polaris Productions Inc.
Accounts Receivable Customer Balances
January 31, 20Y4
Amber Communications Inc.	$
Clear Pointe Studios Inc.
Echo Broadcasting Co.
Gold Coast Media Inc.
Total accounts receivable	$
Polaris Productions Inc.
Accounts Receivable
Controlling
Balance, January 1, 20Y4	$
Total debits (from revenue journal)
Total credits (from cash receipts journal)
Balance, January 31, 20Y4	$

Question 14:

Show Me How

Calculator

Revenue and Cash Receipts Journals

Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows:

Mar. 2.	Issued Invoice No. 512 to Santorini Co., $905.
Mar. 4.	Received cash from CMI Inc., on account, for $205.
Mar. 8.	Issued Invoice No. 513 to Gabriel Co., $220.
Mar. 12.	Issued Invoice No. 514 to Yarnell Inc., $845.
Mar. 19.	Received cash from Yarnell Inc., on account, $555.
Mar. 20.	Issued Invoice No. 515 to Electronic Central Inc., $195.
Mar. 28.	Received cash from Marshall Inc. for services provided, $160.
Mar. 29.	Received cash from Santorini Co. for Invoice No. 512 of March 2.
Mar. 31.	Received cash from McCleary Co. for services provided, $85.

Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Enter the transactions in chronological order.

REVENUE JOURNAL
DATE	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
20Y8
Add DAtes		List accounts	✔
			✔
			✔
			✔
		Total

If an amount box does not require an entry, leave it blank.

CASH RECEIPTS JOURNAL	PAGE 12
DATE	Account Credited	Post. Ref.	Fees Earned Cr.	Accounts Rec. Cr.	Cash Dr.
20Y8
Add dates	List accounts	✔
		✔
		✔
	Total

Question 15:

Identify transactions in accounts payable subsidiary ledger

The debits and credits from three related transactions are presented in the following creditor’s account taken from the accounts payable ledger:

NAME	Apex Performance Co.
ADDRESS	101 W. Stratford Ave.
Date	Item	Post. Ref.	Debit	Credit	Balance
20Y7
June 6		P49		12,000	12,000
June 14		J12	150		11,850
June 16		CP23	11,850		—

Describe each transaction (Purchase on account, paid on, sold on, received on, corrected error or received allowance , and identify the source(purchase journal, cash receipts journal, cash payemnts journal, revenue journal, general journal) of each posting.

Date	Describe Transaction	Transaction Source
June 6
June 14
June 16

Question 16:

Prepare Journal Entries in a Purchases Journal

Guardian Services Inc. had the following transactions during the month of April:

Apr. 4.	Purchased office supplies from Officemate Inc. on account, $415.
Apr. 9.	Purchased office equipment on account from Tek Village Inc., $2,460.
Apr. 16.	Purchased office supplies from Officemate Inc. on account, $185.
Apr. 19.	Purchased office supplies from Paper-to-Go Inc. on account, $195.
Apr. 27.	Paid invoice on April 4 purchase from Officemate Inc.

a.  Prepare a purchases journal to record the April purchase transactions for Guardian Services Inc. If an amount box does not require an entry, leave it blank.

If no entry is required in “Other Accounts Dr.” then select “No entry required”.

PURCHASES JOURNAL
DATE	Account Credited	Post. Ref.	Accounts Payable Cr.	Office Supplies Dr.	Other Accounts Dr.	Post. Ref.	Amount
Apr. 4
Apr. 9
Apr. 16
Apr. 19
Apr. 30	Total

b.  What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April?

Credit to accounts payable	$
Debit to office supplies	$

c.  What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1? $

Question 17:

Segment Revenue Horizontal Analysis

Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year:

	Recent Year (in millions, rounded)	Prior Year (in millions, rounded)
Americas	$13,293		$11,980
EMEA*	1,217		1,295
China/Asia Pacific	2,396		1,130
Channel Development**	1,731		1,546
Other	526		497
Total	$19,163		$16,448

*Europe, Middle East, and Africa

**Sells packaged coffee and teas globally

a.  Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreases values.

Starbucks Corporation
Horizontal Analysis
	Recent Year (in millions)	Prior Year (in millions)	Increase (Decrease)  Amount	Increase (Decrease) Percent
Americas	$13,293	$11,980	$	%
EMEA	1,217	1,295		%
China/Asia Pacific	2,396	1,130		%
Channel Development	1,731	1,546		%
Other	526	497		%
Total revenues	$19,163	$16,448	$	%

b.  Prepare a vertical analysis of the segment data. Round all percents to one decimal place.

Starbucks Corporation
Vertical Analysis
	Recent Year Amount	Recent Year Percent	Prior Year Amount	Prior Year Percent
Americas	$13,293	%	$11,980	%
EMEA	1,217	%	1,295	%
China/Asia Pacific	2,396	%	1,130	%
Channel Development	1,731	%	1,546	%
Other	526	%	497	%
Total revenues	$19,163	%	$16,448	%

c.  Based on the percentages in the vertical analysis, which of Starbuck’s operations grew more? Americas, EMEA, CHINA/ASIA Pacific? Choose one

Question 18

Segment Revenue Vertical Analysis

Twenty-First Century Fox, Inc. is one of the world’s largest entertainment companies that includes Twentieth Century Fox films, Fox Broadcasting, Fox News, the FX, and various satellite properties. The company provided revenue disclosures by its major product segments in the notes to its financial statements as follows:

a.  Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues. Round all percentages to one decimal place.

Major Product Segments	For a Recent Year (in millions)	Percent (%)
Cable Network Programming	$13,773			%
Television	4,895			%
Filmed Entertainment	9,525			%
Direct Broadcast Satellite Television	2,112			%
Total revenues	$30,305			100.0%

Question 20

Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-ofperiod spreadsheet at December 31, 2019, fiscal year:

	Beacon Signals Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 2019
	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	13,000.00				13,000.00
Accounts Receivable	40,500.00		(a) 12,500.00		53,000.00
Prepaid Insurance	4,200.00			(b) 3,000.00	1,200.00
Supplies	3,000.00			(c) 2,250.00	750.00
Land	98,000.00				98,000.00
Building	500,000.00				500,000.00
Accumulated Depreciation-Building		255,300.00		(d) 9,000.00		264,300.00
Equipment	121,900.00				121,900.00
Accumulated Depreciation-Equipment		100,100.00		(e) 4,500.00		104,600.00
Accounts Payable		15,700.00				15,700.00
Salaries and Wages Payable				(f) 4,900.00		4,900.00
Unearned Rent		2,100.00	(g) 1,300.00			800.00
Sarah Colin, Capital		238,100.00				238,100.00
Sarah Colin, Drawing	10,000.00				10,000.00
Fees Earned		388,700.00		(a) 12,500.00		401,200.00
Rent Revenue				(g) 1,300.00		1,300.00
Salaries and Wages Expense	163,100.00		(f) 4,900.00		168,000.00
Advertising Expense	21,700.00				21,700.00
Utilities Expense	11,400.00				11,400.00
Depreciation Expense-Building			(d) 9,000.00		9,000.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 4,500.00		4,500.00
Insurance Expense			(b) 3,000.00		3,000.00
Supplies Expense			(c) 2,250.00		2,250.00
Miscellaneous Expense	4,350.00				4,350.00
	1,000,000.00	1,000,000.00	37,450.00	37,450.00	1,030,900.00	1,030,900.00

Required: DO ALL 1-5 with correct labels

1.	Prepare an income statement for the year ended December 31. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
2.	Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items.
3.	Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word “Less” on the balance sheet; they will automatically insert where necessary.
4.	Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. If you are unsure of account titles, see the chart of accounts.
5.	Prepare a post-closing trial balance.

Question 21

Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows:

Finders Investigative Services
End-of-Period Spreadsheet
For the Year Ended June 30, 2019
	~	Adjusted Trial Balance
Account Title	~	Dr.	Cr.
	~
Cash	~	28,000
Accounts Receivable	~	69,600
Supplies	~	4,600
Prepaid Insurance	~	2,500
Building	~	439,500
Accumulated Depreciation-Building	~		44,200
Accounts Payable	~		11,700
Salaries Payable	~		3,000
Unearned Rent	~		2,000
Stacy Tanner, Capital	~		373,800
Stacy Tanner, Drawing	~	12,000
Service Fees	~		718,000
Rent Revenue	~		12,000
Salaries Expense	~	522,100
Rent Expense	~	48,000
Supplies Expense	~	10,800
Depreciation Expense-Building	~	8,750
Utilities Expense	~	7,150
Repairs Expense	~	3,000
Insurance Expense	~	2,500
Miscellaneous Expense	~	6,200
	~	1,164,700	1,164,700
	Required: DO ALL 1-3 AND LABEL ALL
1.	Prepare an income statement, a statement of owner’s equity (no additional investments were made during the year), and a balance sheet. *
2.	Journalize the entries that were required to close the accounts at June 30.
3.	If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, what would have been the amount of net income or net loss? * Be sure to read the instructions for each financial statement carefully. Refer to the chart of accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Question 22

For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July:

Jul.	1	The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received.
	1	Paid three months’ rent on a lease rental contract, $6,000.
	2	Paid the premiums on property and casualty insurance policies, $4,500.
	4	Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000.
	5	Purchased additional office equipment on account from Office Necessities Co., $5,100.
	6	Received cash from clients on account, $12,750.
	10	Paid cash for a newspaper advertisement, $500.
	12	Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
	12	Provided services on account for the period July 1–12, $14,200.
	14	Paid receptionist for two weeks’ salary, $1,500.

Record the following transactions on Page 2 of the journal:

Jul.	17	Received cash from cash clients for fees earned during the period July 1–17, $10,400.
	18	Paid cash for supplies, $1,000.
	20	Provided services on account for the period July 13–20, $9,000.
	24	Received cash from cash clients for fees earned for the period July 17–24, $8,500.
	26	Received cash from clients on account, $12,000.
	27	Paid receptionist for two weeks’ salary, $1,500.
	29	Paid telephone bill for July, $325.
	31	Paid electricity bill for July, $675.
	31	Received cash from cash clients for fees earned for the period July 25–31, $7,100.
	31	Provided services on account for the remainder of July, $5,500.
	31	Jolene withdrew $20,000 for personal use.
	Required: ANSWER ALL BELOW AND LABEL JUST PUT ANSWERS THAT GO IN EVERY JOURNAL ENTRy
1.	Journalize each transaction in a two-column journal starting on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
2.	Post the July transactions. A. Download the spreadsheet in the Ledger panel and save the Excel file to your computer. Use the spreadsheet to post the July transactions from the journal to a ledger of four-column accounts.  Be sure to save your work in Excel as it will be used to complete the following steps in Part 1 of this problem as well as steps in Part 2 of this problem.  Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. B. Add the appropriate posting reference to the journal in CengageNOW.
3.	Prepare an unadjusted trial balance.
4.	At the end of July, the following adjustment data were assembled. Analyze and use these data to complete requirements (5) and (6). • Insurance expired during July is $375. • Supplies on hand on July 31 are $2,850. • Depreciation of office equipment for July is $400. • Accrued receptionist salary on July 31 is $140. • Rent expired during July is $2,000. • Unearned fees on July 31 are $3,000.
5.	(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.
6.	A. Journalize the adjusting entries on page 3 of the journal. Adjusting entries are recorded on July 31. B. Use the attached spreadsheet in the Ledger panel to post the adjusting entries to the ledger of four-column accounts, inserting balances is the accounts affected. Add the appropriate posting reference to the adjusting entries in the journal in.
7.	Prepare an adjusted trial balance.