Assignment #4 – The Accounting Cycle - Review (15%) This assignment relates to the following Course Learning Requirements: CLR 2: Prepare financial statements including the balance sheet, income statement and statement of o CLR 3: Apply the rules of debit and credit to record business transactions in T-accounts and the Genera CLR 4: Prepare and explain each step in the accounting cycle including: posting journal entries to the g preparing a trial balance, making period-end adjusting entries, preparing an adjusted trial balanc and closing the book of accounts. Objective of this Assignment: The objectives of this assignment are: 1. Review and reinforce learning from Modules 1-8. 2. Reinforce all steps of the Accounting Cycle 3. Review preparation of reversing entries 4. Practice completion of work using MS-Excel. Pre-Assignment Instructions: 1. To prepare you for this assignment, review the content of module 9 , including the embedded lea 2. Review feedback from Assignment 2 and 3 Assignment Tasks: 1. This assignment is worth 100 points and is worth 15% of your final grade. 2. Your assignment must be completed and submitted using MS Excel. 3. Your completed assignment file should be named lastname_firstname_ACC2201_Assignment_4 4. Please complete each part on the worksheets as provided in this file. 5. You should make best use of Excel formulas and formatting, whenever possible. 6. Your assignment must be completed and submitted via the course website by the date indicated Assignment Grading Rubric (15%) Question 1 Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Requirements Journalize and Post April Entries Prepare an Unadjusted Trial Balance Journalize and Post Adjusting Entries Prepare an Adjusted Trial Balance Prepare Financial Statements Journalize and Post Closing Entries Points 23 6 20 8 20 12 Part 7 Part 8 Prepare a Post Closing Trial Balance Journalize Reversing Entries Total Points 5 6 100 Assignment #4 – The Accounting Cycle - Review - 100 Marks Comprehensive Question- Becky's Car Detailing Services Becky Jones opened Becky's Car Detailing Services on April 1, 2027. In Apr, the following transactions w Apr-01 1 1 3 5 12 18 20 21 25 30 30 Invested $14,000 cash in the business Purchased a used truck for $26,400, paying $6,400 cash and signing a note payable for the bala Collected $3,000 from XYZ for their car detailing needs for Apr, May and June. Purchased cleaning supplies on account for $850 Paid $1,800 on a one-year insurance policy, effective Apr 1 Billed customers $3,800 for car detailing services Paid $400 of amount owed on cleaning supplies Paid $1,600 for employee's salaries Collected $1,400 from customers billed on Apr 12 Billed customers for $3,000 for car detailing services Paid gas and oil for the month on the truck $350 Withdrew $1,600 to pay personal property taxes Additional Information: 1. Annual payments of $2,000 are required on the note. Required: 1. Journalize and post the Apr transactions. Becky's Car Detailing Services records all prepaid exp and unearned revenues as assets and liabilities 2. Prepare an unadjusted trial balance at April 30, 2027. 3. Journalize and post the following adjustments a. Earned and unbilled fees at Apr 30, 2027 were $1,500. b. The truck has an estimated useful life of four years and no residual value. c. The insurance policy is effective Apr 1, 2027 and expires on March 31, 2028 d. An inventory count shows $375 of cleaning supplies on hand at Apr 30, 2027. e. At Apr 30. 2027, $1,000 of the fees collected in advance have been earned. f. Accrued but unpaid employee salaries were $400. g. The note payable has a 6% annual interest rate. 4. Prepare an adjusted trial balance at Apr 30, 2027. 5. Prepare in good form an Income Statement, Statement of Owner’s Equity and a Classified Balan for the month ended Apr 30, 2027. 6. 7. 8. Journalize and post the closing entries. Prepare a post closing trial balance at Apr 30, 2027. Becky's Car Detailing Services has chosen to prepare reversing entries. Prepare necessary reve They do not need to be posted. me statement and statement of owner's equity. ns in T-accounts and the General ledger. g: posting journal entries to the general ledger, reparing an adjusted trial balance, e 9 , including the embedded learning activities. tname_ACC2201_Assignment_4 enever possible. se website by the date indicated on the Course Calendar. Apr, the following transactions were completed. gning a note payable for the balance May and June. Services records all prepaid expenses sidual value. March 31, 2028 at Apr 30, 2027. been earned. er’s Equity and a Classified Balance Sheet entries. Prepare necessary reversing entries in May 2027. Check Figures: General Tips Assignment Tips for Each Part Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Presenting Credit Balances in the General Ledger eck Figures: The balance in the cash ledger account is $6,250 on the debit side The closing balance in Becky Jones, Capital at April 30, 2027 is $18,075 on the credit side. neral Tips Templates are provided on the following worksheet. It is highly recommended you use these templates. You must number each page of the general journal Posting references are required All entries should be posted into one general ledger (not 3). A proper general ledger does not include T-A In the general ledger, the particulars column can be left blank You should not start each ledger account with a line that says opening balance of zero, as the company did not exist last month. You are not required to prepare a worksheet for this assignment signment Tips for Each Part Your entries should be prepared in general journals. (As learned in chapter 2 – see page 2-23 Illustration 2.25 for an excellent example – explanations are not required) Posting of entries is demonstrated in the Module Notes. It is a limited explanation. The Learning Activities will help here. This is also explained on page 2-14 Illustration 2-19. Please note: You must post entries into a general ledger and not into T-Accounts as used in the textbook. (Using the Templates is a really good idea). An example of an unadjusted trial balance can be found on page 2-24. Illustration 2.37 or before you go on – do it question A zero balance account on the trial balance can be deleted or left on the trial balance with a zero balance. Your adjusting entries should be prepared in a general journal separate from Part 1. Label the general journal Adjusting Entries. Post your adjusting entries into the general ledger started in Page 3-26 can be used as an example for this part illustration 3.29 Use good form to prepare your financial statements. Remember the feedback from assignment #3 so the same mistakes are not made. Prepare your closing entries in a general journal separate from Part 1 and Part 2. Label the general journal Closing Entries. Post your closing entries into the general ledger from part 3. Page 4-10 has an example of a post closing trial balance. Illustration 4.10 Prepare your reversing entries in a general journal separate from Parts 1, 2 and 6. Label the general journal Reversing Entries. You do not need to post these entries. esenting Credit Balances in the General Ledger The next worksheet entitled G/L credit balances illustrated explain how to differentiate between debit and credit balances in the general ledger.The presentation of a debit balance should be different than a credit balance. Please be sure to present the debit and credit balances as explained in these files for this assignment. The text book does not explain or e these templates. does not include T-Accounts with a zero balance. GENERAL LEDGER ACCOUNTS ACCOUNT: CASH Date Particulars 30-Jun 2021 Opening Balance 1-Jul 1-Jul 2-Jul 6-Jul 6-Jul 7-Jul 7-Jul 10-Jul 12-Jul 14-Jul 14-Jul 16-Jul 16-Jul 18-Jul 21-Jul 21-Jul 22-Jul 22-Jul 28-Jul 28-Jul 29-Jul 31-Jul ACCOUNT NO: P. R. GJ1 GJ1 GJ1 GJ1 GJ1 GJ 1 GJ 1 GJ 2 GJ 2 GJ 2 GJ 2 GJ 2 GJ 2 GJ 2 GJ 2 GJ 2 GJ 2 GJ 3 GJ 3 GJ 3 GJ 3 GJ 3 Debit 11740.00 1010 Credit 2200.00 3000.00 900.00 8687.00 175.00 1200.00 6550.00 6000.00 800.00 1100.00 7550.00 1200.00 1683.00 12500.00 1800.00 8450.00 750.00 1370.00 1025.00 6220.00 300.00 3855.00 Balance 11740.00 9540.00 6540.00 7440.00 (1247.00) (1422.00) (2622.00) 3928.00 (2072.00) (2872.00) (3972.00) 3578.00 2378.00 695.00 13195.00 11395.00 19845.00 19095.00 17725.00 16700.00 22920.00 22620.00 26475.00 Each time the balance column is in a credit position the column should be formatted (presented differently) In this example I have put brackets and red font on the credit balances A Sample Ledger ACCOUNT: GENERAL LEDGER ACCOUNTS Cash ACCOUNT NO: 1450 Date ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date Particulars 1-Jan open balance P. R. Debit Carry Fwd Accounts receivable Particulars 1-Jan open balance Accounts payable Particulars 1-Jan open balance Jan-02 entry Jan-03 entry Owners capital Particulars 1-Jan open balance Credit Balance 1000 ACCOUNT NO: 1452 P. R. Debit Carry Fwd Credit Balance 500 ACCOUNT NO: 1470 P. R. Debit Carry Fwd Credit Balance 250 or 250 CR or (250) or -250 199 449 or 449 CR or (449) or -490 200 649 or 649 CR or (649) or -649 ACCOUNT NO: 1472 P. R. Debit Carry Fwd Credit Balance 1250 or 1250 CR or (1250) or -12 or 250 CR or (250) or -250 or 449 CR or (449) or -490 or 649 CR or (649) or -649 or 1250 CR or (1250) or -1250 Assets 1010 1030 1200 1300 1450 1452 Cash Accounts Receivable Cleaning Supplies Prepaid Insurance Vehicle Accumulated Depreciation - Vehicle Liabilities 2000 Accounts payable 2010 Salaries payable 2020 Interest Payable 2100 Unearned Revenue 2300 Notes Payable Capital 3010 Becky Jones, Capital 3020 Becky Jones, Withdrawals Revenue 4050 Service Revenue Expenses 5100 Vehicle Expense 5110 Salaries Expense 5120 Insurance Expense 5260 Cleaning Supplies Expense 5290 Interest Expense 5300 Depreciation Expense Other 9000 Income Summary Your Name GENERAL JOURNAL MONTH Date Mth COMPANY NAME: Day Account Titles and Explanation P. R. Debit Your Name GENERAL JOURNAL MONTH Date COMPANY NAME: Account Titles and Explanation P. R. Debit Your Name GENERAL JOURNAL ADJUSTING ENTRIES MONTH Date COMPANY NAME: Account Titles and Explanation P. R. Debit Your Name GENERAL JOURNAL MONTH Date CLOSING ENTRIES COMPANY NAME: Account Titles and Explanation P. R. Debit Your Name GENERAL JOURNAL MONTH Date REVERSING ENTRIES COMPANY NAME: Account Titles and Explanation P. R. Debit Page # Credit Page # Credit Page # Credit Page # Credit Page # Credit Company Name: Your Name GENERAL LEDGER ACCOUNT: CASH ACCOUNT NO: 1010 Debit Credit ACCOUNT NO: 1030 Debit Credit ACCOUNT NO: 1200 Debit Credit ACCOUNT NO: 1300 Debit Credit Date ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date Particulars P. R. Accounts Receivable Particulars P. R. Cleaning Supplies Particulars P. R. Prepaid Insurance Particulars P. R. ACCOUNT: Vehicle Date ACCOUNT: Particulars Acc Depn Vehicle Date ACCOUNT: Particulars Particulars Particulars Date ACCOUNT: Date ACCOUNT: P. R. Interest Payable Particulars Date ACCOUNT: P. R. Salaries Payable Date ACCOUNT: P. R. Accounts payable Date ACCOUNT: P. R. P. R. Unearned Revenue Particulars P. R. Note Payable Particulars B. Jones, Capital P. R. ACCOUNT NO: 1450 Debit Credit ACCOUNT NO: 1452 Debit Credit ACCOUNT NO: 2000 Debit Credit ACCOUNT NO: 2010 Debit Credit ACCOUNT NO: 2020 Debit Credit ACCOUNT NO: 2100 Debit Credit ACCOUNT NO: 2300 Debit Credit ACCOUNT NO: 3010 Date ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date Particulars P. R. GENERAL LEDGER ACCOUNTS B. Jones, Withdrawals Particulars P. R. Service Revenue Particulars P. R. Vehicle Expense Particulars P. R. Salaries Expense Particulars P. R. Insurance Expense Particulars P. R. Debit Credit ACCOUNT NO: 3020 Debit Credit ACCOUNT NO: 4050 Debit Credit ACCOUNT NO: 5100 Debit Credit ACCOUNT NO: 5110 Debit Credit ACCOUNT NO: 5120 Debit Credit ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date ACCOUNT: Date Cleaning Supplies Expense Particulars P. R. Interest Expense Particulars P. R. Depreciation Expense Particulars P. R. Income Summary Particulars P. R. ACCOUNT NO: 5260 Debit Credit ACCOUNT NO: 5290 Debit Credit ACCOUNT NO: 5300 Debit Credit ACCOUNT NO: 9000 Debit Credit Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Balance Your Name UNADJUSTED TRIAL BALANCE MONTH COMPANY NAME: Account No. ACCOUNT TITLE 1010 Cash 1030 Accounts Receivable 1200 Cleaning Supplies 1300 Prepaid Insurance 1450 Vehicle 1452 Accumulated Depreciation - Vehicle 2000 Accounts Payable 2010 Salaries Payable 2020 Interest Payable 2100 Unearned Revenue 2300 Note Payable 3010 B. Jones, Capital 3020 B. Jones, Withdrawals 4050 Service Revenue 5100 Vehicle Expense 5110 Salaries Expense 5120 Insurance Expense 5260 Cleaning Supplies Expense 5290 Interest Expense 5300 Depreciation Expense 9000 Income Summary Totals Debit Credit Your Name ADJUSTED TRIAL BALANCE MONTH COMPANY NAME: Account No. ACCOUNT TITLE 1010 Cash 1030 Accounts Receivable 1200 Cleaning Supplies 1300 Prepaid Insurance 1450 Vehicle 1452 Accumulated Depreciation - Vehicle 2000 Accounts Payable 2010 Salaries Payable 2020 Interest Payable 2100 Unearned Revenue 2300 Note Payable 3010 B. Jones, Capital 3020 B. Jones, Withdrawals 4050 Service Revenue 5100 Vehicle Expense 5110 Salaries Expense 5120 Insurance Expense 5260 Cleaning Supplies Expense 5290 Interest Expense 5300 Depreciation Expense 9000 Income Summary Totals Debit Credit Your Name POST CLOSING TRIAL BALANCE MONTH COMPANY NAME: Account No. ACCOUNT TITLE 1010 Cash 1030 Accounts Receivable 1200 Cleaning Supplies 1300 Prepaid Insurance 1450 Vehicle 1452 Accumulated Depreciation - Vehicle 2000 Accounts Payable 2010 Salaries Payable 2020 Interest Payable 2100 Unearned Revenue 2300 Note Payable 3010 B. Jones, Capital 3020 B. Jones, Withdrawals 4050 Service Revenue 5100 Vehicle Expense 5110 Salaries Expense 5120 Insurance Expense 5260 Cleaning Supplies Expense 5290 Interest Expense 5300 Depreciation Expense 9000 Income Summary Totals Debit Credit
