Managerial Accounting
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 onaccount $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