Managerial Accounting

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Accounting cycle

1. Start with the beginning account balances 2. Analyze and journalize transactions as they occur 3. Post journal entries to the accounts 4. Compute the unadjusted balance in each account and prepare the unadjusted trial balance 5. Enter the unadjusted trial balance on the worksheet, and complete the worksheet (optional). 6. Journalize and post adjusting entries. 7. Prepare the adjusted trial balance. 8. Prepare the financial statements. 9. Journalize and post the closing entries. 10. Prepare the post-closing trial balance.

July 10: Performed services for a client on account $2100

Accounts Receivable - Debit $2100 Service Revenue - Credit $2100 Performed services on account

Performed services for customers on account $2100

Accounts Receivable - Debit $2100 Service Revenue - Credit $2100 Performed services on account

July 27: Paid the liability from July 5

Accounts payable - Debit $2600 Cash - Credit $2600 - ?

Paid $300 on accounts payable

Accounts payable - Debit $300 Cash - Credit $300 Paid cash on account

On October​ 1, Avery agreed to provide a​ four-month air system check​ (beginning October​ 1) for a customer for $1,600. Avery has completed the system check every month but payment has not yet been received and no entries have been made.

Accounts receivable - debit $1200 Service revenue - credit $1200 To accrue service revenue

Avery received a bill for​ December's online​ advertising, $1,200. Avery will not pay the bill until January.​ (Use Accounts​ Payable.)

Advertising expense - debit 1200 Accounts payable - credit 1200 To accrue advertising expenses

​May 4: Paid $58,000 cash for building and land. The building had a fair market value of $51,000. Prepare a compound entry.

Building - Debit $51000 Land - Debit $7000 Cash - Credit $58000 Paid cash for building and land

May 1: The business received cash of $105,000 and issued common stock to Zeke Webster

Cash - Credit $105k Common Stock - Debit $105k Issued common stock in exchange for cash

May ​6: Performed services for customers and received​ cash, $3,500.

Cash - Debit $3500 Service Revenue - Credit $3500 Performed services and received cash

July 12: Borrowed $7000 cash, signing a notes payable

Cash - Debit $7000 Notes Payable - Credit $7000 Borrowed cash by a signing note

Journalize the transactions of Laughton Engineering. Include an explanation with each journal entry. Use the following​ accounts: Cash; Accounts​ Receivable; Office​ Supplies; Equipment; Accounts​ Payable; Notes​ Payable; Common​ Stock; Dividends; Service​ Revenue; Utilities Expense. ​

Cash - Debit $9000 Common Stock - Credit $9000 Issued common stock for cash

Receives $1600 from customers for services to be performed next month

Cash - Debit 1600 Unearned revenue - Credit 1600 Collected cash for future service

Received 1900$ cash on account from customer

Cash - Debit 1900 Accounts Receivable - Credit 1900

Depreciation for the equipment is $650

Depreciation expense - Debit 650 Accumulated depreciation - Credit 650 To record depreciation on equipment

July ​19: Cash dividends of $600 were paid to stockholders.

Dividends - Debit $600 Cash - Credit $600 Paid cash dividends

July 5: Purchased equipment on account $2600

Equipment - Debit $2600 Accounts Payable - Credit $2600 Purchase of equipment on account

May ​2: Purchased office supplies on​account $400

Office supplies - Debit $400 Accounts Payable - Credit $400 Purchased office supplies on account

July 21: Purchased office supplies for $800 and paid cash

Office supplies - Debit $800 Cash - Credit $800 Purchase of office supplies with cash

Paid $700 for advertising in next​ month's IT Technology magazine.

Prepaid advertising - Debit $700 Cash - Credit $700 Paid advertising in advance

Paid rent expense for the month, $1000

Rent expense - Debit $1000 Cash - Credit $1000 Paid cash expenses

Avery prepaid two months of rent on December 1.​ (Assume the Prepaid Rent balance as shown on the unadjusted trial balance represents the two months of rent prepaid on December​ 1.)

Rent expense - Debit 1350 Prepaid rent - Credit 1350 To record rent expense

Incurred and paid salaries $1600

Salaries expenses - Debit 1600 Cash - Credit 1600

pays its employees on Monday for the previous​ week's wages. Its employees earn $ 4 comma 000$4,000 for a​ five-day work week. December 31 falls on WednesdayWednesday this year.

Salaries expenses - debit $2400 Salaries payable - credit $2400 To accrue salaries expenses

Avery used 650 of office supplies

Supplies expense - Debit 650 Office supplies - Credit 650 To record office supplies used

On December​ 15, Avery contracted to perform services for a client receiving $2,800 in advance. Avery recorded this receipt of cash as Unearned Revenue. As of December​ 31, Avery has completed $1,200 of the services.

Unearned revenue - Debit 1200 Service revenue - Credit 1200 To record service rev that was collected in advanced

July 4: paid utilities expense of $370

Utilities expense - Debit $370 Cash - Credit $370 Paid cash expenses


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