Principles of Accounting - Critical Thinking Assignment

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Question description

Critical Thinking Assignment

Important! Read First

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1 is for sensing learners who learn best from concrete materials like examples; that is, those learners who are practical and careful with details. Option #2 is for intuitive learners who learn best from abstract materials—such as, theories and concepts—and who enjoy challenges and tend to be more innovative. When you are ready to submit your completed assignment, click the Week 2 Critical Thinking header on the Assignments page to upload the document.


Option #1: Adjusted Trial Balance: The Modine Consulting Case

For this assignment, you are required to present the seven correct journal entries in an Excel spreadsheet.

Assignment Template attached below (template_option1.xlsx)

Linda Ace started her own consulting firm, Modine Consulting, on May 1, 2008. The trial balance at May 31 is as detailed below.

MODINE CONSULTING
Trial Balance
May 31, 2008


Account
Number

Debit

Credit

101

Cash

$7,700

112

Accounts Receivable

4,000

126

Supplies

1,500

130

Prepaid Insurance

4,800

149

Office Furniture

9,600

201

Accounts Payable

$3,500

209

Unearned Service Revenue

3,000

301

L. Ace, Capital

19,100

400

Service Revenue

6,000

726

Salaries Expense

3,000

729

Rent Expense

1,000

In addition to those accounts listed on the trial balance, the chart of accounts for Modine Consulting also contains the following accounts and account numbers: No. 150 Accumulated Depreciation – Office Furniture; No. 229 Travel Payable; No. 212 Salaries Payable; No. 717 Depreciation Expense; No. 722 Insurance Expense; No. 736 Travel Expense; and No. 631 Supplies Expense.

Other data:

  1. $500 worth of supplies has been used during the month.
  2. Travel expenses incurred, but not payed, on May 31, 2008 are $200.
  3. The insurance policy is for two years.
  4. $1,000 of the balance in the unearned service revenue account remains unearned at the end of the month.
  5. May 31 is a Wednesday, and employees are paid on Fridays. Modine Consulting has two employees, who are paid $700 each for a five-day work week.
  6. The office furniture has a five-year life with no salvage value. It is being depreciated at $160 per month for 60 months.
  7. Invoices representing $1,000 of services performed during the month have not been recorded as of May 31.

Instructions:

In Excel, following the six-column spreadsheet format used for the company Fast Forward in Chapter 3 of textbook, add the company name, the date of the statement, and today’s date and then enter: (a) the debits and credits for the unadjusted trial balance for May 31; (b) the debits and credits adjustments at the end of May 31; and (c) the total debits and credits of the adjusted trial balance for the month of May. Label each adjustment A through G.



Option #2: Adjusted Trial Balance: The Masai Company Case

For this assignment, present your journal entries in PowerPoint format.

Assignment Template attached below (template_option2.xlsx)

MASAI COMPANY
Trial Balance
June 30, 2008

Account
Number

Debit

Credit

101

Cash

$7,150

112

Accounts Receivable

6,000

126

Supplies

2,000

130

Prepaid Insurance

3,000

157

Office Equipment

15,000

201

Accounts Payable

$4,500

209

Unearned Service Revenue

4,000

301

T. Masasi, Capital

21,750

400

Service Revenue

7,900

726

Salaries Expense

4,000

729

Rent Expense

1,000

In addition to those accounts listed on the trial balance, the chart of accounts for Masasi Company also contains the following accounts and account numbers: No. 158 Accumulated Depreciation – Office Equipment; No. 244 Utilities Payable; No. 212 Salaries Payable; No. 711 Depreciation Expense; No. 722 Insurance Expense; No. 732 Utilities Expense; and No. 631 Supplies Expense.

Other data:

  1. Supplies on hand at June 30 are valued at $600.
  2. A utility bill for $150 has not been recorded and will not be paid until next month.
  3. The insurance policy is for one year.
  4. $2,500 of unearned service revenue has been earned at the end of the month.
  5. Salaries of $2,000 are accrued at June 30.
  6. The office equipment has a five-year life with no salvage value. It is being depreciated at $250 per month for 60 months.
  7. Invoices representing $1,000 of services performed during the month have not been recorded as of June 30.

Instructions:

In PowerPoint, following the six-column spreadsheet format used for the company Fast Forward in Chapter 3 of textbook, add the company name, the date of the statement, and today’s date and then enter:

(a) the debits and credits for the unadjusted trial balance for June 30
(b) the debits and credits adjustments at the end of June 30
(c) the total debits and credits of the adjusted trial balance for the month of June

Label each adjustment 1 through 7.

Modine Option #1- Mod 2- CT Templaplate for your Journal # Acct # A Account Name Debit Journal Entires Credit B C D E F G Modine Worksheet Unadj Trial Balance Debit 101 112 126 130 149 150 201 209 212 229 Cash Accounts Receivable Supplies Prepaid Insurance Office Furniture Accumulated Depreciation Accounts Payable Unearned Revenue Salaries Payable Travel Payable Credit Adjustments Debit Credit Adj trial Balance Debit Credit 301 Ace, Capital 400 Service Revenue- Journal D Service Revenue- Journal G 736 Travel Expense 631 Supplies Expense 717 Depreciation Expense 722 Insurance Expense 726 Salaries Expense 736 Rent Expense TOTALS
Masai CompanyOption #2- Mod 2-CT Template for Your CT Journal # Acct # 1 Account Name Debit Journal Entires Credit 2 3 4 5 6 7 Masai CompanyWorksheet Unadj Trial Balance Debit 101 112 126 130 157 158 201 209 212 244 Cash Accounts Receivable Supplies Prepaid Insurance Office Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Salaries Payable Utilities Payable Credit Adjustments Debit Credit Adj trial Balance Debit Credit Credit 301 T. Masasi. Capital 400 Service Revenue- Journal 4 Service Revenue- Journal 7 631 Supplies Expense 711 Depreciation Expense 711 Insurance Expense 726 Salaries Expense 729 Rent Expense 732 Utilities Expense TOTALS

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