Reference no: EM13305782

You are to use the Comprehensive Problem Excel Spreadsheets

On April 1, 2012 S. Sharp created a new bookkeeping service business called So Sharp. Since this is a new business, the beginning balance in each account is $0. The chart of accounts for So Sharp follows:

101 Cash
106 Accounts Receivable
124 Office Supplies
128 Prepaid Insurance
163 Office Equipment
164 Accumulated Depreciation
Office Equipment
201 Accounts Payable
210 Salaries Payable
230 Unearned Revenue

301 S. Sharp, Capital
302 S. Sharp, Drawing
403 Services Revenue
612 Depreciation Expense
633 Salaries Expense
637 Insurance Expense
650 Office Supplies Expense
690 Utilities Expense
901 Income Summary

a) The following transactions occurred during the company's first month. Using Page 1 (General Journal, Page 1), prepare in proper format the journal entries for the month of April.

Apr 1. S. Sharp invested $30,000 cash and office equipment worth $26,000 in the business.

Apr 1. S. Sharp agreed to perform services for 2 months and received $10,000 payment in advance.

Apr. 5 The company purchased $2,000 of office supplies on credit.
Apr. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy.
Apr. 11 Completed services for a client and immediately received $3,000 cash.
Apr. 12 Completed work for a client for $2,500 on credit.
Apr. 14 An employee is paid $1,000 cash for salary earned.
Apr. 20 Paid $2,000 cash to pay the accounts payable created on Apr. 5.
Apr. 26 Received $2,500 cash for the work completed on April 12.
Apr. 29 Paid $450 cash for the utility bill.
Apr. 30 Sharp withdraw $2,000 cash for personal use.

c) Preparing the following adjusting journal entries on hand are only $500. Prepare the adjusting journal entry to record 0, the on

2) On Apr. 5, $2,000 of office supplies were Purchased. adjusting journal entry to record this revenue earned. the service. On April 30, 1 month of the service has now be 'es, prior to performing

1) On Apr. 1, $10,000 was received in advance for 2 mo. of April 30. Use Geltheprealeoltellues ePsrueppparieietshe cc(3n April 3 ebeen co, ,
2/3 of a month of coverage has expired. Prepare the adjusting journal ent

3) on. Apr.used. entry tonrnecporr.c130 the 10, $2,400 was paid to purchase 12 mo. of i insurance coverage. 0 A insurance that has expired. (Round to the nearest dollar.)

4) Prepare the adjusting journal entry to record the depreciation expense for the office equipment. The office equipment value is $26,000. It is expected to have a 5 life and the salvage value at the end of the 5 year useful li year useful life will be $1,000.

5) On April 30, employees have earned $1,200 in wages; but have not been paid. Prepare the adjusting journal entry to record the salaries expense.

d) Post the adjusting entries prepared in c) to the General Ledger.

e) Prepare an adjusted trial balance.

f) Prepare the following financial statements: Income Statement, Owner's Equity Statement, and CLASSIFIED Balance Sheet.

g) Prepare the closing journal entries, using General Journal Page 3, and post the closing journal entries to the General Ledger.

h) Prepare a post closing trial balance.