Reference no: EM132693567

Question - COMPREHENSIVE PROBLEM

Sam started Samuel Technology Service in February, 2015. The following transactions occurred in March, 2015:

Mar. 1 Received cash from customers on account, $ 3,500.

Mar. 2 Paid cash for advertising on a local website, $ 600.

Mar. 3 Received cash from customers as an advance payment for technical support services to be provided in the future, $ 5,000.

Mar. 6 Paid technician $ 1,500 in salary, including the amount owed at the end of February.

Mar. 8 Paid $ 800 on account.

Mar. 12 Billed customers for services provided on account, $ 12,200.

Mar. 16 Received $ 7,750 cash for fees earned for jobs completed.

Mar. 17 Paid technician $ 1,500 in salary.

Mar. 18 Purchased supplies on account, $ 800.

Mar. 20 Received $ 16,400 cash for fees earned for jobs completed.

Mar. 21 Billed customers for services provided on account, $ 6,400.

Mar. 23 Received cash from customers on account, $ 19,000.

Mar. 26 Paid phone bill for the month, $ 240.

Mar. 28 Paid electricity bill for the month, $ 580.

Mar. 30 Billed customers for services provided on account, $ 7,800.

Mar. 31 Received cash from customers on account, $ 10,200.

Mar. 31 Sam withdrew $16,000 for personal use.

INSTRUCTIONS -

1. The chart of accounts and the post-closing trial balance as of February 28, 2015 are given. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of the ledger. Date the balances March 1, 2015, and place a check mark in the Posting Reference column. Journalize each of the March transactions in the journal provided using Samuel Technology Service's chart of accounts. (Do not insert the account numbers in the journal at this time).

2. Post the journal to the ledger.

3. Create an unadjusted trial balance.

4. At the end of March, the following adjustment data were assembled. Use this data to complete instructions (5) and (6):

Supplies on hand were $ 1,200.

Rent expired during the month was $ 3,200.

Unearned fees at the end of the month were $ 4,000.

Insurance expired during the month was $ 600.

Accrued salaries payable were $ 480.

Depreciation on equipment during the month was $ 660.

5. Enter the unadjusted trial balance on an end-of-period spreadsheet/worksheet and complete the worksheet.

6. Journalize and post the adjusting entries.

7. Create an adjusted trial balance.

8. Create an Income Statement, Statement of Owner's Equity, and Balance Sheet.

9. Record and post the closing entries. Indicate closed accounts in the ledger by inserting a line in both of the Balance columns opposite each closing entry.

10. Create a post-closing trial balance.