Description
Need the solutions for this practice set for an accounting class...
houseofdecor_booklet_insidefrontcover_final.pdf
houseofdecor_booklet_final_0.pdf
Check Figures: check_figures (1).doc
Explanation & Answer
Good evening zapyes,Attached below is the complete solution for House of Decor. The entire solution set is broken apart by month, each month in an Excel file with all financial statements and analysis completed as per instruction. Thank you again for choosing me!Selenica
Journal
Date
Jan 5
Description
Cash -- Checking Account
Capital Stock
PR
Debit
60,000
Prepaid Insurance
Cash -- Checking Account
6,000
6
Rent Expense
Prepaid Rent
Deposits
Cash -- Checking Account
2,000
2,000
2,000
7
Supplies
Cash -- Checking Account
1,600
Advertising Expense
Cash -- Checking Account
7,000
10
Cash -- Checking Account
Decorating Fees
10,000
12
Accounts Receivable, Maribel Thompson
Decorating Fees
6,000
20
Cash -- Checking Account
Decorating Fees
8,000
25
Accounts Receivable, Roberto Andriani
Decorating Fees
30
Utilities Expense
Cash -- Checking Account
190
Telephone Expense
Cash -- Checking Account
300
Postage Expense
Cash -- Checking Account
200
Automobile Expense
Cash -- Checking Account
450
12,000
Salaries Expense -- Administrative
Cash -- Checking Account
5,600
Adjusting Entries
31
Insurance Expense
Prepaid Insurance
500
Supplies Expense
Supplies
600
Credit
60,000
6,000
6,000
1,600
7,000
10,000
6,000
8,000
12,000
190
300
200
450
5,600
500
600
Accounts Receivable Ledger
Name: Roberto Andriani
Date
Jan 25
Item
PR
Earned $12,000 decorating fees on account
Debit
12,000
Name: Maribel Thompson
Date
Jan 25
Item
Earned $6,000 decorating fees on account
PR
Debit
6,000
Credit
Credit
Balance
Debit
Credit
12,000
Balance
Debit
Credit
6,000
General Ledger
ACCOUNT: Cash -- Checking Account
Date
Jan 05
Jan 06
07
10
20
31
Item
PR
Issuance of capital stock
Payment for prepaid insurance
Payment for rent
Payment for supplies
Payment for advertising
Receipt for decorating fees
Receipt for decorating fees
Payment for utilities
Payment for telephone usage
Payment for postage
Payment for automobile expenses
Payment for salaries
Debit
60,000
10,000
8,000
ACCOUNT: Accounts Receivable
Date
Jan 12
25
Item
PR
Earned $6,000 decorating fees on account
Earned $12,000 decorating fees on account
Debit
6,000
12,000
ACCOUNT: Supplies
Date
Jan 7
31
Item
PR
Purchased supplies
Adjustment for supplies expense
Debit
1,600
ACCOUNT: Prepaid Insurance
Date
Jan 5
31
Item
PR
Payment for one-year insurance
Adjustment for insurance expense
Debit
6,000
ACCOUNT: Prepaid Rent
Date
Jan 6
Item
PR
Advance payment of rent
Debit
2,000
ACCOUNT: Deposits
Date
Item
PR
Debit
Jan 6
Paid $2,000 as a security deposit
2,000
ACCOUNT: Capital Stock (Common Stock)
Date
Jan 5
Item
PR
Debit
PR
Debit
PR
Debit
Issuance of capital stock
ACCOUNT: Decorating Fees
Date
Jan 10
12
20
25
Item
Collected $10,000 in decorating fees
Earned $6,000 decorating fees on account
Collected $8,000 in decorating fees
Earned $12,000 decorating fees on account
ACCOUNT: Salaries Expense -- Administrative
Date
Jan 30
Item
Payment for salaries
5,600
ACCOUNT: Rent Expense
Date
Jan 6
Item
PR
Payment for rent
Debit
2,000
ACCOUNT: Advertising Expense
Date
Jan 7
Item
PR
Payment of advertising expense
Debit
7,000
ACCOUNT: Automobile Expense
Date
Jan 30
Item
PR
Payment of automobile expense
Debit
450
ACCOUNT: Supplies Expense
Date
Jan 31
Item
PR
Adjustment for supplies expense
Debit
600
ACCOUNT: Insurance Expense
Date
Jan 31
Item
PR
Adjustment for insurance expense
Debit
500
ACCOUNT: Utilities Expense
Date
Jan 30
Item
Payment for utilities
PR
Debit
190
ACCOUNT: Telephone Expense
Date
Jan 30
Item
PR
Payment for use of telephone
Debit
300
ACCOUNT: Postage Expense
Date
Jan 30
Item
Payment for postage
PR
Debit
200
ACCOUNT NO. 1002
Balance
Credit
Debit
Credit
60,000
6,000
54,000
6,000
48,000
1,600
46,400
7,000
39,400
49,400
57,400
190
57,210
300
56,910
200
56,710
450
56,260
5,600
50,660
ACCOUNT NO. 1004
Balance
Credit
Debit
Credit
6,000
18,000
ACCOUNT NO. 1009
Balance
Credit
Debit
Credit
1,600
600
1,000
ACCOUNT NO. 1011
Balance
Credit
Debit
Credit
6,000
500
5,500
ACCOUNT NO. 1013
Balance
Credit
Debit
Credit
2,000
ACCOUNT NO. 1015
Balance
Credit
Debit
Credit
2,000
ACCOUNT NO. 3001
Balance
Credit
Debit
Credit
60,000
60,000
ACCOUNT NO. 4001
Balance
Credit
Debit
Credit
10,000
10,000
6,000
16,000
8,000
24,000
12,000
36,000
ACCOUNT NO. 5004
Balance
Credit
Debit
Credit
5,600
ACCOUNT NO. 5005
Balance
Credit
Debit
Credit
2,000
ACCOUNT NO. 5006
Balance
Credit
Debit
Credit
7,000
ACCOUNT NO. 5007
Balance
Credit
Debit
Credit
450
ACCOUNT NO. 5008
Balance
Credit
Debit
Credit
600
ACCOUNT NO. 5009
Balance
Credit
Debit
Credit
500
ACCOUNT NO. 5010
Balance
Credit
Debit
Credit
190
ACCOUNT NO. 5011
Balance
Credit
Debit
Credit
300
ACCOUNT NO. 5012
Balance
Credit
Debit
Credit
200
My Place, House of Décor
Unadjusted Trial Balance
January 31, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
4001
5004
5005
5006
5007
5010
5011
5012
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Decorating Fees
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Utilities Expense
Telephone Expense
Postage Expense
Total
Debit
50,660
18,000
1,600
6,000
2,000
2,000
5,600
2,000
7,000
450
190
300
200
96,000
Credit
60,000
36,000
96,000
My Place, House of Décor
Adjusted Trial Balance
January 31, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
4001
5004
5005
5006
5007
5008
5009
5010
5011
5012
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Decorating Fees
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Total
Debit
50,660
18,000
1,000
5,500
2,000
2,000
5,600
2,000
7,000
450
600
500
190
300
200
96,000
Credit
60,000
36,000
96,000
My Place, House of Décor
Schedule of Accounts Receivable
January 31, 20--
Accounts Receivable, Roberto Andriani
Accounts Receivable, Maribel Thompson
Total Accounts Receivable
$
6,000
12,000
$ 18,000
My Place, House of Décor
Post-Closing Trial Balance
January 31, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
3007
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Retained Earnings
Total
Debit
50,660
18,000
1,000
5,500
2,000
2,000
79,160
Credit
60,000
19,160
79,160
My Place, House of Décor
Income Statement
For the Period Ended January 31, 20--
Revenue:
Decorating Fees
Expenses:
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Net Income
$ 36,000
$
5,600
2,000
7,000
450
600
500
190
300
200
(16,840)
$ 19,160
My Place, House of Décor
Retained Earnings Statement
For the Period Ended January 31, 20--
Retained Earnings, as at January 1, 20-Net Income
Retained Earnings, as at January 31, 20--
$
19,160
$ 19,160
My Place, House of Décor
Balance Sheet
January 31, 20--
Assets
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Prepayments
1
2
$ 50,660
20,000
8,500
Total Assets
$ 79,160
Liabilities and Shareholders' Equity
Shareholders' Equity
Capital Stock
Retained Earnings
$ 60,000
19,160
Total Liabilities and Shareholders' Equity
$ 79,160
Note 1 - Trade and Other Receivables
Accounts Receivable
Deposits
Total Trade and Other Receivables
$ 18,000
2,000
$ 20,000
Note 2 - Prepayments
Supplies
Prepaid Insurance
Prepaid Rent
Total Prepayments
$
$
1,000
5,500
2,000
8,500
JANUARY ANALYSIS
From the statements you prepared for January, provide the following amounts:
Adjusted Trial Balance
1) Trial balance totals
96,000
Schedule of Accounts Receivable
2) Schedule of accounts receivable total
18,000
Income Statement
3) Total revenue for the period (January)
4) Total expenses
5) Net income
36,000
16,840
19,160
Retained Earnings Statement
6) Ending retained earnings amount transferred to balance sheet
19,160
Balance Sheet
7) Total assets as of January 31, 20-8) Total liabilities and stockholder's equity as of January 31, 20--
79,160
79,160
Post-Closing Trial Balance
9) Post-closing trial balance total
79,160
Journal
Date
Feb 4
Description
Advertising Expense
Cash -- Checking Account
PR
Debit
5,500
6
Rent Expense
Cash -- Checking Account
7
Cash -- Checking Account
Decorating Fees
11
Cash -- Checking Account
Accounts Receivable, Maribel Thompson
6,000
15
Cash -- Checking Account
Decorating Fees
4,800
22
Cash -- Checking Account
Accounts Receivable, Roberto Andriani
8,000
25
Accounts Receivable, Riviera's Café
Decorating Fees
27
Utilities Expense
Cash -- Checking Account
225
Telephone Expense
Cash -- Checking Account
350
Postage Expense
Cash -- Checking Account
230
Automobile Expense
Cash -- Checking Account
500
Salaries Expense -- Administrative
Cash -- Checking Account
2,000
10,300
11,500
5,600
Adjusting Entries
31
Insurance Expense
Prepaid Insurance
500
Supplies Expense
325
Supplies
Credit
5,500
2,000
10,300
6,000
4,800
8,000
11,500
225
350
230
500
5,600
500
325
Accounts Receivable Ledger
Name: Roberto Andriani
Date
Jan 25
Feb 22
Item
PR
Earned $12,000 decorating fees on account
Receipt from the Roberto Andriani acct.
Debit
12,000
Name: Maribel Thompson
Date
Jan 25
Feb 11
Item
PR
Earned $6,000 decorating fees on account
Receipt from the Maribel Thompson acct.
Debit
6,000
Name: Riviera's Café
Date
Feb 25
Item
Earned $11,500 decorating fees on account
PR
Debit
11,500
Credit
8,000
Credit
6,000
Credit
Balance
Debit
Credit
12,000
4,000
Balance
Debit
Credit
6,000
-
Balance
Debit
Credit
11,500
11,500
General Ledger
ACCOUNT: Cash -- Checking Account
Date
Feb 1
4
6
7
11
15
22
27
Item
PR
Beginning Balance
Payment for advertising
Payment for rent
Receipt for decorating fees
Receipt from the Maribel Thompson acct.
Receipt for decorating fees
Receipt from the Roberto Andriani acct.
Payment for utilities
Payment for telephone usage
Payment for postage
Payment for automobile expense
Payment for salaries
Debit
10,300
6,000
4,800
8,000
ACCOUNT: Accounts Receivable
Date
Feb 1
11
22
25
Item
PR
Beginning Balance
Receipt from the Maribel Thompson acct.
Receipt from the Roberto Andriani acct.
Earned $11,500 decorating fees on account
Debit
11,500
ACCOUNT: Supplies
Date
Feb 1
28
Item
PR
Debit
PR
Debit
PR
Debit
Beginning Balance
Adjustment for supplies expense
ACCOUNT: Prepaid Insurance
Date
Feb 1
28
Item
Beginning Balance
Adjustment for insurance expense
ACCOUNT: Prepaid Rent
Date
Feb 1
ACCOUNT: Deposits
Item
Beginning Balance
Date
Feb 1
Item
PR
Debit
Item
PR
Debit
Item
PR
Debit
PR
Debit
Beginning Balance
ACCOUNT: Capital Stock (Common Stock)
Date
Feb 1
Beginning Balance
ACCOUNT: Decorating Fees
Date
Jan 10
12
20
25
Feb 7
15
25
Collected $10,000 in decorating fees
Earned $6,000 decorating fees on account
Collected $8,000 in decorating fees
Earned $12,000 decorating fees on account
Collected $10,300 in decorating fees
Collected $4,800 in decorating fees
Earned $11,500 decorating fees on account
ACCOUNT: Salaries Expense -- Administrative
Date
Jan 30
Feb 27
Item
Payment for salaries
Payment for salaries
5,600
5,600
ACCOUNT: Rent Expense
Date
Jan 6
Feb 6
Item
PR
Payment for rent
Payment for rent
Debit
2,000
2,000
ACCOUNT: Advertising Expense
Date
Jan 7
Feb 4
Item
PR
Payment of advertising expense
Payment of advertising expense
Debit
7,000
5,500
ACCOUNT: Automobile Expense
Date
Jan 30
Feb 27
Item
PR
Payment of automobile expense
Payment of automobile expense
Debit
450
500
ACCOUNT: Supplies Expense
Date
Jan 31
Feb 28
Item
Adjustment for supplies expense
Adjustment for supplies expense
PR
Debit
600
325
ACCOUNT: Insurance Expense
Date
Jan 31
Feb 28
Item
PR
Adjustment for insurance expense
Adjustment for insurance expense
Debit
500
500
ACCOUNT: Utilities Expense
Date
Jan 30
Feb 27
Item
PR
Payment for utilities
Payment for utilities
Debit
190
225
ACCOUNT: Telephone Expense
Date
Jan 30
Feb 27
Item
PR
Payment for use of telephone
Payment for use of telephone
Debit
300
350
ACCOUNT: Postage Expense
Date
Jan 30
Feb 27
Item
Payment for postage
Payment for postage
PR
Debit
200
230
ACCOUNT NO. 1002
Balance
Credit
Debit
Credit
50,660
5,500
45,160
2,000
43,160
53,460
59,460
64,260
72,260
225
72,035
350
71,685
230
71,455
500
70,955
5,600
65,355
ACCOUNT NO. 1004
Balance
Credit
Debit
Credit
18,000
6,000
12,000
8,000
4,000
15,500
ACCOUNT NO. 1009
Balance
Credit
Debit
Credit
1,000
325
675
ACCOUNT NO. 1011
Balance
Credit
Debit
Credit
5,500
500
5,000
ACCOUNT NO. 1013
Balance
Credit
Debit
Credit
2,000
ACCOUNT NO. 1015
Credit
Balance
Debit
Credit
2,000
ACCOUNT NO. 3001
Balance
Credit
Debit
Credit
60,000
ACCOUNT NO. 4001
Balance
Credit
Debit
Credit
10,000
10,000
6,000
16,000
8,000
24,000
12,000
36,000
10,300
46,300
4,800
51,100
11,500
62,600
ACCOUNT NO. 5004
Balance
Credit
Debit
Credit
5,600
11,200
ACCOUNT NO. 5005
Balance
Credit
Debit
Credit
2,000
4,000
ACCOUNT NO. 5006
Balance
Credit
Debit
Credit
7,000
12,500
ACCOUNT NO. 5007
Balance
Credit
Debit
Credit
450
950
ACCOUNT NO. 5008
Balance
Credit
Debit
Credit
600
925
ACCOUNT NO. 5009
Balance
Credit
Debit
Credit
500
1,000
ACCOUNT NO. 5010
Balance
Credit
Debit
Credit
190
415
ACCOUNT NO. 5011
Balance
Credit
Debit
Credit
300
650
ACCOUNT NO. 5012
Balance
Credit
Debit
Credit
200
430
My Place, House of Décor
Unadjusted Trial Balance
February 28, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
4001
5004
5005
5006
5007
5008
5009
5010
5011
5012
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Decorating Fees
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Total
Debit
65,355
15,500
1,000
5,500
2,000
2,000
11,200
4,000
12,500
950
600
500
415
650
430
122,600
Credit
60,000
62,600
122,600
My Place, House of Décor
Adjusted Trial Balance
February 28, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
4001
5004
5005
5006
5007
5008
5009
5010
5011
5012
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Decorating Fees
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Total
Debit
65,355
15,500
675
5,000
2,000
2,000
11,200
4,000
12,500
950
925
1,000
415
650
430
122,600
Credit
60,000
62,600
122,600
My Place, House of Décor
Schedule of Accounts Receivable
February 28, 20--
Accounts Receivable, Roberto Andriani
Accounts Receivable, Riviera's Café
Total Accounts Receivable
$
4,000
11,500
$ 15,500
My Place, House of Décor
Post-Closing Trial Balance
February 28, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
3007
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Retained Earnings
Total
Debit
65,355
15,500
675
5,000
2,000
2,000
90,530
Credit
60,000
30,530
90,530
My Place, House of Décor
Income Statement
For the Period Ended February 28, 20--
Revenue:
Decorating Fees
Expenses:
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Net Income
$ 26,600
$
5,600
2,000
5,500
500
325
500
225
350
230
(15,230)
$ 11,370
My Place, House of Décor
Retained Earnings Statement
For the Period Ended February 28, 20--
Retained Earnings, as at January 1, 20-Net Income
Retained Earnings, as at February 28, 20--
$
11,370
$ 11,370
My Place, House of Décor
Balance Sheet
February 28, 20--
Assets
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Prepayments
1
2
$ 65,355
17,500
7,675
Total Assets
$ 90,530
Liabilities and Shareholders' Equity
Shareholders' Equity
Capital Stock
Retained Earnings
$ 60,000
11,370
Total Liabilities and Shareholders' Equity
$ 71,370
Note 1 - Trade and Other Receivables
Accounts Receivable
Deposits
Total Trade and Other Receivables
$ 15,500
2,000
$ 17,500
Note 2 - Prepayments
Supplies
Prepaid Insurance
Prepaid Rent
Total Prepayments
$
$
675
5,000
2,000
7,675
FEBRUARY ANALYSIS
From the statements you prepared for February, provide the following amounts:
Adjusted Trial Balance
1) Trial balance totals
122,600
Schedule of Accounts Receivable
2) Schedule of accounts receivable total
15,500
Income Statement
3) Total revenue for the two months ended February 28
4) Total expenses for the two months ended February 28
5) Net income for the two months ended February 28
62,600
32,070
30,530
Retained Earnings Statement
6) Ending retained earnings amount transferred to balance sheet
30,530
Balance Sheet
7) Total assets as of February 28, 20-8) Total liabilities and stockholder's equity as of February 28, 20--
90,530
90,530
Post-Closing Trial Balance
9) Post-closing trial balance total
90,530
Adjusting entries are entries made to update the balances of certain accounts because
daily updating is not practical and the result on daily operations is not material. These
entries are important in the accounting cycle because they allow fair presentation of the
financial statements. On the other hand, closing entries are prepared to "empty" or
reduce to zero temporary accounts to facilitate calculation of net income. These entries
are made to isolate the effect of transactions that lead to increases/decreases in equity
other than those initiated by the owners.
Journal
Date
Mar 3
Description
Advertising Expense
Cash -- Checking Account
PR
Debit
7,500
6
Rent Expense
Cash -- Checking Account
2,000
8
Cash -- Checking Account
Decorating Fees
13
Accounts Receivable, Nancy's Accounting Firm
Decorating Fees
20
Accounts Receivable, La Epoca Beauty Boutique
Decorating Fees
26
Accounts Receivable, Andrea's Gourmet Food
Decorating Fees
30
Utilities Expense
Cash -- Checking Account
280
Telephone Expense
Cash -- Checking Account
300
Postage Expense
Cash -- Checking Account
240
Automobile Expense
Cash -- Checking Account
550
11,500
8,600
18,000
4,300
Adjusting Entries:
31
Insurance Expense
Prepaid Insurance
500
Supplies Expense
Supplies
425
Salaries Expense -- Administrative
Accrued Salaries
5,600
Uncollectible Accounts Expense
Allowance for Doubtful Accounts
927
Credit
7,500
2,000
11,500
8,600
18,000
4,300
280
300
240
550
500
425
5,600
927
Accounts Receivable Ledger
Name: Andrea's Gourmet food
Date
Mar 26
Item
PR
Earned $4,300 decorating fees on account
Debit
4,300
Name: Roberto Andriani
Date
Jan 25
Feb 22
Item
PR
Earned $12,000 decorating fees on account
Receipt from the Roberto Andriani acct.
Debit
12,000
Name: La Epoca Beauty Boutique
Date
Mar 20
Item
PR
Earned $18,000 decorating fees on account
Debit
18,000
Name: Maribel Thompson
Date
Jan 25
Feb 11
Item
PR
Earned $6,000 decorating fees on account
Receipt from the Maribel Thompson acct.
Debit
6,000
Name: Nancy's Accounting Firm
Date
Mar 13
Item
PR
Earned $8,600 decorating fees on account
Debit
8,600
Name: Riviera's Café
Date
Feb 25
Item
Earned $11,500 decorating fees on account
PR
Debit
11,500
Credit
Credit
8,000
Credit
Credit
6,000
Credit
Credit
Balance
Debit
Credit
4,300
4,300
Balance
Debit
Credit
12,000
4,000
Balance
Debit
Credit
18,000
18,000
Balance
Debit
Credit
6,000
-
Balance
Debit
Credit
8,600
8,600
Balance
Debit
Credit
11,500
11,500
General Ledger
ACCOUNT: Cash -- Checking Account
Date
Mar 1
3
6
8
30
Item
PR
Beginning Balance
Payment for advertising
Payment for rent
Receipt for decorating fees
Payment for utilities
Payment for usage of telephone
Payment for postage
Payment for automobile expense
Debit
11,500
ACCOUNT: Accounts Receivable
Date
Mar 1
13
20
26
Item
PR
Beginning Balance
Earned $8,600 decorating fees on account
Earned $18,000 decorating fees on account
Earned $4,300 decorating fees on account
Debit
8,600
18,000
4,300
ACCOUNT: Allowance for Doubtful Accounts
Date
Mar 31
Item
PR
Debit
PR
Debit
PR
Debit
PR
Debit
Adjustment for uncollectible accounts
ACCOUNT: Supplies
Date
Mar 1
31
Item
Beginning Balance
Adjustment for supplies expense
ACCOUNT: Prepaid Insurance
Date
Mar 1
31
Item
Beginning Balance
Adjustment for insurance expense
ACCOUNT: Prepaid Rent
Date
Mar 1
Item
Beginning Balance
ACCOUNT: Deposits
Date
Mar 1
Item
PR
Debit
Item
PR
Debit
Item
PR
Debit
Item
PR
Debit
PR
Debit
Beginning Balance
ACCOUNT: Accrued Salaries
Date
Mar 31
Adjustment for unpaid salaries
ACCOUNT: Capital Stock (Common Stock)
Date
Mar 1
Beginning Balance
ACCOUNT: Decorating Fees
Date
Jan 10
12
20
25
Feb 7
15
25
Mar 8
13
20
26
Collected $10,000 in decorating fees
Earned $6,000 decorating fees on account
Collected $8,000 in decorating fees
Earned $12,000 decorating fees on account
Collected $10,300 in decorating fees
Collected $4,800 in decorating fees
Earned $11,500 decorating fees on account
Collected $11,500 in decorating fees
Earned $8,600 decorating fees on account
Earned $18,000 decorating fees on account
Earned $4,300 decorating fees on account
ACCOUNT: Salaries Expense -- Administrative
Date
Jan 30
Feb 27
Mar 31
Item
Payment for salaries
Payment for salaries
Adjustment for unpaid salaries
5,600
5,600
5,600
ACCOUNT: Rent Expense
Date
Jan 6
Feb 6
Mar 6
Item
PR
Payment for rent
Payment for rent
Payment for rent
Debit
2,000
2,000
2,000
ACCOUNT: Advertising Expense
Date
Item
PR
Debit
Jan 7
Feb 4
Mar 3
Payment of advertising expense
Payment of advertising expense
Payment of advertising expense
7,000
5,500
7,500
ACCOUNT: Automobile Expense
Date
Jan 30
Feb 27
Mar 30
Item
PR
Payment of automobile expense
Payment of automobile expense
Payment of automobile expense
Debit
450
500
550
ACCOUNT: Supplies Expense
Date
Jan 31
Feb 28
Mar 31
Item
PR
Adjustment for supplies expense
Adjustment for supplies expense
Adjustment for supplies expense
Debit
600
325
425
ACCOUNT: Insurance Expense
Date
Jan 31
Feb 28
Mar 31
Item
PR
Adjustment for insurance expense
Adjustment for insurance expense
Adjustment for insurance expense
Debit
500
500
500
ACCOUNT: Utilities Expense
Date
Jan 30
Feb 27
Mar 30
Item
PR
Payment for utilities
Payment for utilities
Payment for utilities
Debit
190
225
280
ACCOUNT: Telephone Expense
Date
Jan 30
Feb 27
Mar 30
Item
PR
Payment for use of telephone
Payment for use of telephone
Payment for use of telelphone
Debit
300
350
300
ACCOUNT: Postage Expense
Date
Jan 30
Feb 27
Mar 30
Item
PR
Payment for postage
Payment for postage
Payment for postage
Debit
200
230
240
ACCOUNT: Uncollectible Accounts Expense
Date
Item
PR
Debit
Mar 31
Adjustment for uncollectible accounts
927
ACCOUNT NO. 1002
Balance
Credit
Debit
Credit
65,355
7,500
57,855
2,000
55,855
67,355
280
67,075
300
66,775
240
66,535
550
65,985
ACCOUNT NO. 1004
Balance
Credit
Debit
Credit
15,500
24,100
42,100
46,400
ACCOUNT NO. 1005
Balance
Credit
Debit
Credit
927
927
ACCOUNT NO. 1009
Balance
Credit
Debit
Credit
675
425
250
ACCOUNT NO. 1011
Balance
Credit
Debit
Credit
5,000
500
4,500
ACCOUNT NO. 1013
Balance
Credit
Debit
Credit
2,000
ACCOUNT NO. 1015
Balance
Credit
Debit
Credit
2,000
ACCOUNT NO. 2003
Balance
Credit
Debit
Credit
5,600
5,600
ACCOUNT NO. 3001
Balance
Credit
Debit
Credit
60,000
ACCOUNT NO. 4001
Balance
Credit
Debit
Credit
10,000
10,000
6,000
16,000
8,000
24,000
12,000
36,000
10,300
46,300
4,800
51,100
11,500
62,600
11,500
74,100
8,600
82,700
18,000
100,700
4,300
105,000
ACCOUNT NO. 5004
Balance
Credit
Debit
Credit
5,600
11,200
16,800
ACCOUNT NO. 5005
Balance
Credit
Debit
Credit
2,000
4,000
6,000
ACCOUNT NO. 5006
Balance
Credit
Debit
Credit
7,000
12,500
20,000
ACCOUNT NO. 5007
Balance
Credit
Debit
Credit
450
950
1,500
ACCOUNT NO. 5008
Balance
Credit
Debit
Credit
600
925
1,350
ACCOUNT NO. 5009
Balance
Credit
Debit
Credit
500
1,000
1,500
ACCOUNT NO. 5010
Balance
Credit
Debit
Credit
190
415
695
ACCOUNT NO. 5011
Balance
Credit
Debit
Credit
300
650
950
ACCOUNT NO. 5012
Balance
Credit
Debit
Credit
200
430
670
ACCOUNT NO. 5015
Balance
Credit
Debit
Credit
927
927
927
My Place, House of Décor
Unadjusted Trial Balance
March 31, 20--
Acct. No.
1002
1004
1009
1011
1013
1015
3001
4001
5004
5005
5006
5007
5008
5009
5010
5011
5012
Account Title
Cash -- Checking Account
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Capital Stock
Decorating Fees
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Total
Debit
65,985
46,400
675
5,000
2,000
2,000
11,200
6,000
20,000
1,500
925
1,000
695
950
670
165,000
Credit
60,000
105,000
165,000
My Place, House of Décor
Adjusted Trial Balance
March 31, 20--
Acct. No.
1002
1004
1005
1009
1011
1013
1015
2003
3001
4001
5004
5005
5006
5007
5008
5009
5010
5011
5012
5015
Account Title
Cash -- Checking Account
Accounts Receivable
Allowance for Doubtful Accounts
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Accrued Salaries
Capital Stock
Decorating Fees
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Uncollectible Accounts Expense
Total
Debit
65,985
46,400
250
4,500
2,000
2,000
16,800
6,000
20,000
1,500
1,350
1,500
695
950
670
927
171,527
Credit
927
5,600
60,000
105,000
171,527
My Place, House of Décor
Schedule of Accounts Receivable
March 31, 20--
Accounts Receivable, Andrea's Gourmet Food
Accounts Receivable, Roberto Andriani
Accounts Receivable, La Epoca Beauty Boutique
Accounts Receivable, Nancy's Accounting Firm
Accounts Receivable, Riviera's Café
Total Accounts Receivable
$
4,300
4,000
18,000
8,600
11,500
$ 46,400
My Place, House of Décor
Post-Closing Trial Balance
March 31, 20--
Acct. No.
1002
1004
1005
1009
1011
1013
1015
2003
3001
3007
Account Title
Cash -- Checking Account
Accounts Receivable
Allowance for Doubtful Accounts
Supplies
Prepaid Insurance
Prepaid Rent
Deposits
Accrued Salaries
Capital Stock
Retained Earnings
Total
Debit
65,985
46,400
250
4,500
2,000
2,000
121,135
Credit
927
5,600
60,000
54,608
121,135
My Place, House of Décor
Income Statement
For the Period Ended March 31, 20--
Revenue:
Decorating Fees
Expenses:
Salaries Expense -- Administrative
Rent Expense
Advertising Expense
Automobile Expense
Supplies Expense
Insurance Expense
Utilities Expense
Telephone Expense
Postage Expense
Uncollectible Accounts Expense
Net Income
$
5,600
2,000
7,500
550
425
500
280
300
240
927
$
42,400
(18,322)
$
24,078
My Place, House of Décor
Retained Earnings Statement
For the Period Ended March 31, 20--
Retained Earnings, as at January 1, 20-Net Income
Retained Earnings, as at February 31, 20--
$
24,078
$ 24,078
My Place, House of Décor
Balance Sheet
March 31, 20--
Assets
Current Assets
Cash and Cash Equivalents
Trade and Other Receivables
Prepayments
Total Assets
Liabilities and Shareholders' Equity
Current Liabilities
Accrued Salaries
Shareholders' Equity
Capital Stock
Retained Earnings
Total ...