DE ANZA COLLEGE Accounting 1A Comprehensive Problem for Lawrence Scott Osborne's Class ONLY Y. Chang Company COVER SHEET The purpose of this project is to give you experience doing manual accounting. You will enter balances and transactions in the journals and ledgers, prepare a worksheet and adjusting entries, prepare financial statements and close the books. The assignment will be worth 40 homework points and will be graded on a 0-40 point scale. The due date will be posted on CPAscott.com. Hints: Be sure to include all posting references and dates on the journal and ledger. Include cross references on the worksheet. Don't forget headings on the financial statements. NAME Class hour When you finish the project please enter the control totals below: CASH ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE NET INCOME TOTAL ASSETS Workpaper package page 1
DE ANZA COLLEGE Accounting 1A Comprehensive Problem Y. Chang Company Y. Chang Company closes its books and prepares financial statements at the end of each month. The company completed the following transactions during August 20XX: August 1 Issued check for office rent for the current month. (Debit rent expense) AMOUNT: $3,450 2 Performed services for customer on account. AMOUNT: $11,400 4 Purchased supplies on account. AMOUNT: $2,100 5 Performed services for customer and was paid cash. AMOUNT: $8,400 6 Issued check to purchase computer equipment for cash. AMOUNT: $4,050 9 Issued check to pay vendor for the supplies purchased on the 4th of the month. AMOUNT: $2,100 12 Received net amount of cash on account from customer in full settlement of the account receivable from the 2nd of the month. AMOUNT: $11,400 16 Issued check to pay salaries. AMOUNT: $5,100 23 Performed services for customer on account. AMOUNT: $7,350 28 Purchased advertising on account. AMOUNT: $900 31 Issued check to pay owner for personal withdrawal. AMOUNT: $4,500 Workpaper package page 2
THE POST CLOSING TRIAL FROM LAST MONTH WAS: ACCT # ACCOUNT NAME DR CR 1001 CASH $22,500 1010 ACCOUNTS RECEIVABLE 0 1040 SUPPLIES 2,625 1510 COMPUTER EQUIPMENT 33,000 1520 ACCUMULATED DEPRECIATION $20,550 2010 ACCOUNTS PAYABLE 0 2020 SALARY PAYABLE 0 3990 OWNER'S CAPITAL 37,575 TOTAL $58,125 $58,125 THE CHART OF ACCOUNTS ALSO INCLUDES THE FOLLOWING ACCOUNTS: ACCT # ACCOUNT NAME 3980 OWNER'S WITHDRAWAL 4010 FEE REVENUE 6010 SALARY EXPENSE 6020 RENT EXPENSE 6030 SUPPLIES EXPENSE 6040 ADVERTISING EXPENSE 6060 DEPRECIATION EXPENSE REQUIREMENTS 1. Open the accounts using the balances from the prior month in the general ledger. (This has already been done for you.) 2. Journalize the current transactions in the general journal. Use page numbers 7 thru 9 for the general journal. Then post the transactions to the general ledger. (The ledger accounts may have more rows than needed.) 3. Prepare a trial balance in the Unadjusted Trial Balance columns of a worksheet. Then use the following information to enter the adjusting entries on the worksheet. Finally complete the worksheet. a. Supplies on hand: $1,950 b. Accrued salary expense: $1,875 c. Depreciation expense: $3,420 4. Prepare an income statement and statement of owner's equity for the month. Prepare a CLASSIFIED balance sheet as of the end of the month. 5. Journalize and post the adjusting and closing entries. 6. Prepare a post closing trial balance as of the end of the month. PLEASE SUBMIT YOUR ASSIGNMENT IN THE FOLLOWING ORDER. 1 COVER SHEET 5 INCOME STATEMENT 2 GENERAL JOURNAL (3 pages; page 7, 8 & 9) 6 STMT OF OE. 3 GENERAL LEDGER (3 pages) 7 SHEET 4 WORKSHEET 8 POST CLOSE T/B Workpaper package page 3
GENERAL JOURNAL PAGE 7 POST DATE ACCOUNT TITLES REF. DEBIT CREDIT Workpaper package page 4
GENERAL JOURNAL PAGE 8 POST DATE ACCOUNT TITLES REF. DEBIT CREDIT Workpaper package page 5
GENERAL JOURNAL PAGE 9 POST DATE ACCOUNT TITLES REF. DEBIT CREDIT Workpaper package page 6
ACCOUNT CASH ACCOUNT NUMBER 1001 August 1 BAL. 22,500 ACCOUNT ACCOUNTS RECEIVABLE ACCOUNT NUMBER 1010 ACCOUNT SUPPLIES ACCOUNT NUMBER 1040 August 1 BAL. 2,625 ACCOUNT COMPUTER EQUIPMENT ACCOUNT NUMBER 1510 August 1 BAL. 33,000 ACCOUNT ACCUMULATED DEPRECIATION ACCOUNT NUMBER 1520 August 1 BAL. 20,550 Workpaper package page 7
ACCOUNT ACCOUNTS PAYABLE ACCOUNT NUMBER 2010 ACCOUNT SALARY PAYABLE ACCOUNT NUMBER 2020 ACCOUNT OWNER'S WITHDRAWAL ACCOUNT NUMBER 3980 ACCOUNT OWNER'S CAPITAL ACCOUNT NUMBER 3990 August 1 BAL. 37,575 Workpaper package page 8
ACCOUNT FEE REVENUE ACCOUNT NUMBER 4010 ACCOUNT SALARY EXPENSE ACCOUNT NUMBER 6010 ACCOUNT RENT EXPENSE ACCOUNT NUMBER 6020 ACCOUNT SUPPLIES EXPENSE ACCOUNT NUMBER 6030 ACCOUNT ADVERTISING EXPENSE ACCOUNT NUMBER 6040 ACCOUNT DEPRECIATION EXPENSE ACCOUNT NUMBER 6060 Workpaper package page 9
Unadj. Trial Bal. Adjustments Adjusted Trial Bal. Income Statement Balance Sheet AC # ACCOUNT NAME DR CR DR CR DR CR DR CR DR CR Y. Chang Company Worksheet August 31, 20XX 1001 CASH 1010 ACCOUNTS RECEIVABLE 1040 SUPPLIES 1510 COMPUTER EQUIPMENT 1520 ACCUMULATED DEPRECIATION 2010 ACCOUNTS PAYABLE 2020 SALARY PAYABLE 3980 OWNER'S WITHDRAWAL 3990 OWNER'S CAPITAL 4010 FEE REVENUE 6010 SALARY EXPENSE 6020 RENT EXPENSE 6030 SUPPLIES EXPENSE 6040 ADVERTISING EXPENSE 6060 DEPRECIATION EXPENSE Workpaper package page 10
Workpaper package page 11
Workpaper package page 12
Step DE ANZA COLLEGE Accounting 1A Comprehensive Problem Y. Chang Company CHECKLIST This is the recommended sequence for completing the assignment. 1 Enter the monthly transactions into the General Journal Page 7. Enter all transactions before posting. The posting reference column should be left blank at this stage. 2 Post the monthly transactions to the General Ledger (G/L). Record the G/L account number in the journal posting reference column as you post each item. Also record the page number 7 in the posting reference column of the G/L. 3 After all transactions are posted, calculate the total balance in each G/L account. This is the unadusted balance. 4 Copy the unadjusted balance from each G/L account into the Unadjusted Columns of the worksheet. The Debits and Credits should be in balance. If not, you need to go back and correct the error. 5 Enter the three adjusting entries into the Adjustment Columns of the worksheet. Be sure to include cross references. Complete the worksheet. 6 Prepare the three financial statements. (The Balance Sheet should be a CLASSIFIED one.) 7 Enter the three adjusting entries into the General Journal Page 8. Enter all transactions before posting. The posting reference column should be left blank at this stage. Use the end of month as the Journal Entry (JE) date. 8 Post the adjusting entries to the General Ledger (G/L). Record the G/L account number in the journal posting reference column as you post each item. Also record the page number 8 in the posting reference column of the G/L. 9 After all adjusting entries are posted, calculate the total balance in each G/L account. This is the adusted balance. 10 Enter the closing entries into the General Journal Page 9. Enter all transactions before posting. The posting reference column should be left blank at this stage. Use the end of month as the Journal Entry (JE) date. You can get the balance amounts from the worksheet or from the adjusted G/L. 11 Post the closing entries to the General Ledger (G/L). Record the G/L account number in the journal posting reference column as you post each item. Also record the page number 9 in the posting reference column of the G/L. 12 After all closing entries are posted, calculate the total balance in each G/L account. This is the post closing balance. All revenue, expense and draw accounts should be zero. 13 Copy the post closing balance from each G/L account into a Post Closing Trial Balance (that you create yourself). The Debits and Credits should be in balance. If not, you need to go back and correct the error. 14 Fill out the Cover Sheet with the control numbers in your assignment. Reassemble into the correct order, staple, and turn the assingment in. Workpaper package page 13