Accounting Cycle
Complete accounting cycle
For the past several years, Abby Brown has operated a part-time consulting business from her home. As of June 1, 2012, Abby decided to move to rented quarters and to operate the business, which was to be known as Square One Consulting, on a full-time basis. Square One Consulting entered into the following transactions during June: June 1. The following assets were received from Abby Brown: cash, $30,000; accounts receivable, $7,500; supplies, $2,000; and office equipment, $15,000. 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, $3,600. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000. 5. Purchased additional office equipment on account from Office Depot Co., $6,000. 6. Received cash from clients on account, $4,000. 10. Paid cash for a newspaper advertisement, $200. 12. Paid Office Depot Co. for part of the debt incurred on June 5, $1,200. 12. Recorded services provided on account for the period June 1?12, $13,000. 14. Paid part-time receptionist for two weeks' salary, $1,500. Record the following transactions on Page 2 of the journal. 17. Recorded cash from cash clients for fees earned during the period June 1?16, $9,000. 18. Paid cash for supplies, $1,400. 20. Recorded services provided on account for the period June 13?20, $8,500. 24. Recorded cash from cash clients for fees earned for the period June 17?24, $6,300. 26. Received cash from clients on account, $12,100. 27. Paid part-time receptionist for two weeks' salary, $1,500. 29. Paid telephone bill for June, $150. 30. Paid electricity bill for June, $400. 30. Recorded cash from cash clients for fees earned for the period June 25?30, $3,900. 30. Recorded services provided on account for the remainder of June, $2,500. 30. Abby withdrew $10,000 for personal use.
Instructions 1. Journalize each
For the past several years, Abby Brown has operated a part-time consulting business from her home. As of June 1, 2012, Abby decided to move to rented quarters and to operate the business, which was to be known as Square One Consulting, on a full-time basis. Square One Consulting entered into the following transactions during June: June 1. The following assets were received from Abby Brown: cash, $30,000; accounts receivable, $7,500; supplies, $2,000; and office equipment, $15,000. 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, $3,600. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000. 5. Purchased additional office equipment on account from Office Depot Co., $6,000. 6. Received cash from clients on account, $4,000. 10. Paid cash for a newspaper advertisement, $200. 12. Paid Office Depot Co. for part of the debt incurred on June 5, $1,200. 12. Recorded services provided on account for the period June 1?12, $13,000. 14. Paid part-time receptionist for two weeks' salary, $1,500. Record the following transactions on Page 2 of the journal. 17. Recorded cash from cash clients for fees earned during the period June 1?16, $9,000. 18. Paid cash for supplies, $1,400. 20. Recorded services provided on account for the period June 13?20, $8,500. 24. Recorded cash from cash clients for fees earned for the period June 17?24, $6,300. 26. Received cash from clients on account, $12,100. 27. Paid part-time receptionist for two weeks' salary, $1,500. 29. Paid telephone bill for June, $150. 30. Paid electricity bill for June, $400. 30. Recorded cash from cash clients for fees earned for the period June 25?30, $3,900. 30. Recorded services provided on account for the remainder of June, $2,500. 30. Abby withdrew $10,000 for personal use.
Instructions 1. Journalize each