complete the accounting cycle, assignment help
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During its first month of operation, the Rawls Repair Company, which specializes in bicycle repairs, completed the following transactions:
Oct. 1 Owner, John Rawls, began business by investing $12,000 in exchange for common stock.
Oct. 1 Paid the premium on a one-year insurance policy, $1,200.
Oct. 1 Paid the current month’s rent, $1,040.
Oct. 3 Purchased repair equipment from Conklin Company, $4,400 by signing a 2-year note.
Oct. 8 Purchased repair supplies from McKenna Company on credit, $390.
Oct. 19 Made partial-payment to McKenna Company, $200.
Oct. 20 Paid wages to part-time assistant, $500.
Oct. 31 Cash bicycle repair revenue for October, $2,672. (for simplicity, record this all at once, rather than daily)
Oct. 31 The owner (and sole stockholder), John Rawls, was paid a dividend of $400.
Oct. 31 Received a bill for October utilities, $185, to be paid in November.
REQUIREMENT #1:
Prepare journal entries to record the October transactions in the Journal.
REQUIREMENT #2:
Post the October journal entries to the T-Accounts and compute ending balances.
REQUIREMENT #3:
Prepare a trial balance at October 31.
REQUIREMENT #4:
Prepare Oct. 31 adjusting entries in the Journal using the following information.
a) One month’s worth of prepaid insurance has expired.
b) The remaining amount of repair supplies at month-end is $194.
c) The estimated monthly depreciation on repair equipment is $70.
d) Unpaid wages at Oct. 31 are $100.
Requirement #5:
Post your adjustments to the T-accounts and compute adjusted balances.
(Just add to the October T-accts.)
Requirement #6:
Prepare an Adjusted Trial Balance.
Requirement #7:
Prepare the financial statements for Rawls Repair Company as of October 31:
Income Statement
Retained Earnings Statement
Classified Balance Sheet
Requirement #8:
Prepare the closing entries at October 31 in the Journal.
Requirement #9:
Post the closing entries to the T-accounts and compute ending balances. (Just add to the adjusted balances already listed.)
Requirement #10:
Prepare a post-closing trial balance as of October 31.
