Comprehensive Accounting Cycle Review Problem

Student Name __Mckayla Elcock________________

Complete the Comprehensive Problem, beginning on page 2, on the included work papers.
Submit the assignment to your instructor AND upload it to your ePortfolio:
1. Submit to your instructor by July 1, 2015 (60 point)
2. Upload to your ePortfolio by July 15, 2015 and submit url on Canvas. (20 points)
You can complete #1 and skip #2 but you will lose the 20 points. (You can get help setting up an ePortfolio in the library on the
Redwood campus.)
1-Instructions on how to submit the assignment to your instructor (60 points):
Complete the problem by hand and scan
Submit via a link on the Canvas home page
o Make a digital copy of your completed problem.
o Log into your Canvas account home page for this course
o Click on the Submit My Comprehensive Problem link on the bottom of the home page
o Click on submit my assignment link in the upper right hand corner
o Use the browse button to select the file and submit

Be sure and put your name on the assignment and keep a copy.
2-Instructions on how to submit your assignment via your ePortfolio (20 points):
Upload the completed assignment to your ePortfolio Coursework page (copy the page url)
Log into your Canvas account home page for this course
Click on the Submit My ePortfolio link on the bottom of the home page
Click on submit my assignment link in the upper right hand corner
Paste the url page into the box provided and submit
20 points are awarded for submitting your assignment via your ePortfolio according to these instructions
Note: This is the project that lets you know if your level of understanding is where it needs to be to be successful in this
course. If you are having great difficulty in completing this then you need to review the content of chapters 2-4 to continue
on and have a successful experience. Please give it your best shot!
A solution to this problem is not available for your reference, by design. It is time for you to complete a problem on your own. The
following check figures are provided:
Unadjusted Trial Balance
Adjusted Trial Balance
Net Income
Total Assets
Post-Closing Trial Balance

$101,920
$102,175
$13,465
$92,260
$92,440

Comprehensive Accounting Cycle Review Problem

On December 1st Curt Williamson began an auto repair shop, Williamsons Quality Automotive. The following information about
Decembers transactions, accounts, and adjustment data is available.

Transactions

Dec.

1 Williamson contributed $50,000 cash to the business in exchange for capital.

1
1

Purchased $10,800 of equipment paying cash.

Paid $4,500 for a 9-month insurance policy starting on December 1.

Paid $18,000 cash to purchase land to be used in operations.

10
19

Purchased office supplies on account, $3,000.

Borrowed $28,000 from the bank for business use. Williamson signed a note payable to the bank in the name of
the business.

22

Paid $800 for advertising expenses.

26
28
31

Paid $1,000 on account.

The business received a bill for utilities to be paid in January, $280.
Revenues earned during the month included $17,500 cash and $2,700 on account.

31

Paid employees' salaries $3,600 and building rent $700. Record as a compound entry.

31

The business received $1,440 for auto screening services to be performed next month.

31

Williamson withdrew cash of $3,000.

Accounts
Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated
Depreciation-Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable;
Williamson, Capital; Williamson, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense;
Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment.
Adjustment Data
a. Office Supplies used during the month, $600.
b. Depreciation for the month, $180.

c. One month insurance has expired.

d. Accrued Interest Expense, $75.
Requirements:
Complete the following on the attached work papers
1. Prepare the journal entries and post to the T-accounts.
2. Prepare an unadjusted trial balance.

3. Prepare the adjusting entries and post to the T-accounts.

4. Prepare an adjusted trial balance.
5. Prepare the income statement, the statement of owner's equity, and a classified balance sheet. Use proper
formatting techniques including headings, dollar signs, and underlining.

6. Prepare the closing entries and post to the T-accounts.

7. Prepare a post-closing trial balance.

GENERAL JOURNAL
DATE
Dec 1

Dec 1

Dec 1

Dec 9

Dec 10

Dec 19

Dec 22

Dec 26

Dec 28

Dec 31

Dec 31

Dec 31

ACCOUNT TITLES AND EXPLANATION

Record Transactions, Adjusting Entries, Closing Entries in this journal
Cash
Williamson, Capital
Owners contribution
Equipment
Cash
Purchased equipment with cash
Prepaid insurance
Cash
Prepaid insurance with cash for 9 months
Land
Cash
Purchased land with cash
Office supplies
Accounts payable
Purchased office supplies on account
Cash
Notes payable
Received bank loan
Advertising expense
Cash
Purchased advertising with cash
Accounts payable
Cash
Paid on accounts payable with cash
Utilities expense
Utilities payable
Record future expense
Cash
Accounts receivable
Service revenue
Received payments on earned revenue
Salaries expense
Rent expense
Cash
Paid salaries and rent with cash
Cash
Unearned revenue
Received cash for future service

DEBIT

CREDIT

50,000
50,000
10,800
10,800
4,500
4,500
18,000
18,000
3,000
3,000
28,000
28,000
800
800
1,000
1,000
280
280
17,500
2,700
20,200
3,600
700
4,300
1,440
1,440

GENERAL JOURNAL
DATE
Dec 31

Dec 31

Dec 31

Dec 31

Dec 31

ACCOUNT TITLES AND EXPLANATION

DEBIT

Williamson withdrawal
Cash
Owners withdrawal

3,000

Supplies expense
Office supplies
Record office supplies used

600

Depreciation expense- equipment

Accumulated depreciation equipment
Record depreciation on equipment

180

Insurance expense
Prepaid insurance
Record one month insurance expense

500

Interest expense
Interest payable
Accrual interest

75

Service Revenue
Income Summary
Close Service Revenue
Income Summary
Depreciation Expense
Utilities Expense
Salaries Expense
Rent Expense
Supplies Expense
Insurance Expense
Advertising Expense
Interest Expense
Close Expense Accounts
Income Summary
Williams, Capital
Close Income Summary
Williams, Capital
Williams, withdrawals
Close owners withdrawals

20,200

CREDIT
3,000

600

180

500

75

20,200
6735
180
280
3600
700
600
500
800
75
13,465
13,465
3,000
3,000

GENERAL LEDGER

Cash

Accts. Rec

Office Supplies

Dec 1 50,000
10,800 Dec 1
4,500
500 C

Dec 31 2,700

Dec 10 3,000

Dec 19 28,000
4,000

4,500 Dec 9

Bal 2700

Bal 2,400

Dec 31 17,500

18,000 Dec 10

Dec 31 1,440

Prepaid Insurance
600 A

Dec 1
Bal

800 Dec 22
1000 Dec 26
4300 Dec 31
3,000 Dec 31

Bal 54,540

Equipment

Accum. Deprec. Equip.

Dec 1 10,800
1,000
3,000 Dec 10

Land

180 B

Bal 10,800

Accounts Payable

Dec 9 18,000
180 bal

Dec 26

Bal 18,000

2,000 Bal

Utilities Payable

Interest Payable

280 Dec 28

Unearned Revenue
75 D

Notes Payable-Williamson

1,440 Dec 31

280 Bal

75 Bal

28,000 Dec 19
1,440 Bal

28,000 Bal

Capital-Williamson
Closing 3,000

Withdrawals

50,000 Dec 1
Dec 31 3,000
13,645 closing
Bal 0

Service Revenue

3,000 closing

Closing 20,200

Bal 0
60,645 Bal

20,200 Dec 31
Bal 0

Salaries Expense
Dec 31 3,600

3,600 closing

Rent Expense
Dec 31 700
Bal 0

700 closing

Insurance Expense
C 500
Bal 0
0 Bal

Utilities Expense
Dec 28 280
Bal 0

Advertising Expense

280 closing

Dec 22 800
Bal 0

Interest Expense

500 closing
Exp 6,735
20,200 Rev

D 75

800 closing

Depreciation Exp. Equip.

75 closing

Bal 0

Bal 0

B 180

Supplies Expense
A 600
Bal 0

600 closing

Income Summary
180 closing
closing 13,645

Unadjusted Trial Balance

Account
Cash
Accounts receivable
Office supplies
Prepaid insurance
Equipment
Land
Accounts payable
Utilities payable
Unearned revenue
Notes payable
Williamson, Capital
Williamson, withdrawal
Service revenue
Salaries expense
Rent expense
Advertising expense
Utilities expense
Total

Debits

Credits

54,540
2,700
3,000
4,500
10,800
18,000
2000
280
1,440
28,000
50,000
3,000
20,200
3,600
700
800
280
101,920

101,920

Adjusted Trial Balance

Account
Cash
Account receivable
Office supplies
Equipment
Accumulated Depreciation- equipment
Land
Accounts payable
Interest payable
Utilities payable
Unearned revenue
Notes payable
Williamson, Capital
Williamson, withdrawal
Service revenue
Rent expense
Salaries expense
Supplies expense
Insurance expense
Interest expense
Advertising expense
Utilities expense
Depreciation expense- equipment
Total

Debits

Credits

54,540
2,700
2400
10,800
180
18,000
2,000
75
280
1,440
28,000
50,000
3,000
20,200
700
3,600
600
500
75
800
280
180
102,175

102,175

Williams Quality Automotive

Dec 31
Income Statement

Account
Revenue
Service Revenue
Expense
Insurance expense
Salaries expense
Rent expense
Utilities expense
Advertising expense
Supplies expense
Interest expense
Depreciation expense
Total
Net income

Debit

Credit
20,200

500
3,600
700
280
800
600
75
180
6735
13,465

Williams Quality Automotive

Dec 31
Statement of Changes in Owners Equity

Account
Williamson, Capital Dec 1
Contribution
Net income
Total
Withdrawals
Williamson, Capital Dec 31

Amount
0
50,000
13,465
63,465
(3,000)
60,465

Asset
Cash
Accounts receivable
Office supplies
Prepaid Insurance
Equipment
Accumulated
Dep- equip.
10,800
Land
Total
assets
18,000
92,260

Williams Quality Automotive

(180)

Liabilities

Accounts payable
Dec Utilities
31
2,700
payable
2,400 Interest payable
Balance
Sheet
4,000 Unearned
revenue
Notes payable
10,620 Total liabilities
28,000
Williamson,
Capital Dec 31
31,795
Total liabilities and owners equity

10

2,000
280
75
1,440

60,465
92,260

Post-Closing Trial Balance

Account
Cash
Accounts receivable
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation equipment
Land
Accounts payable
Utilities payable
Interest payable
Unearned revenue
Williamson, Capital
Notes payable
Total

Debits

Credits

54,540
2,700
2,400
4,000
10,800
180
18,000

92,440

11

2,000
280
75
1,440
60,465
28,000
92,440