Comprehensive Accounting Cycle Review Problem Instructions

Student Name

Complete the Comprehensive Problem, beginning on page 2, on the included work papers. If you prefer you can complete the
problem using the excel spreadsheet available in the Document Sharing tab on MAL.

Submit the assignment to your instructor AND upload it to your ePortfolio:

1. Submit to your instructor by February 20, 2016 (60 points)
2. Upload to your ePortfolio and submit the link to your instructor by March 13, 2016. (20 points)

1-lnstructions on how to submit the assignment (60 points):

Go to your Canvas home page for this course. Scroll down to the bottom where it says Offline Assignment Submittal Area. Follow
the instructions where is says Click here to upload your Comprehensive Problem. Be sure and put your name on the assignment.
Please submit the problem as 1 document if at all possible.

2-lnstructions on how to submit the link to your ePortfolio (20 points):

Go to your Canvas home page for this course. Scroll down to the bottom where it says Offline Assignment Submittal Area. Follow
the instructions where is says Click here to submit your ePortfolio link. (If you do not already have an ePortfolio you can get help
making one by either going to the ePortfolio lab in the basement of the library on the Redwood Campus in room 47 or by using the
tutorials at http://eportresource.weebly.com/start-an-eportfolio.html. The tutorials are quite good.)

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 $51,900

Adjusted Trial Balance $54,150
Net Income $10,200
Total Assets $47,500
Post-Closing Trial Balance $47,600

1
 Comprehensive Accounting Cycle Review Problem Data & Work Papers

On December 1st Micron Delivery Service began operations. The following information about December's transactions, accounts,
and adjustment data is available.

Transactions

Dec
1 Micron Delivery Service began operations 30,000 cash and a truck with a fair value of$ $8,000 from Richard Micron. The
business gave Micron capital in exchange for this contribution.
Paid $ $600 cash for a six-month insurance policy. The policy begins December 1.
4 Paid $450 cash for office supplies.
12 Performed delivery services for a customer and received$ 1,500 cash.
15 Completed a large delivery job, billed the customer, $3,300, and received a promise to collect the $3,300 within one week.
18 Paid employee salary, $1,100.
20 Received $6,000 cash for performing delivery services.
22 Collected $2,200 in advance for delivery service to be performed later.
25 Collected $3,300 cash from customer on account.
27 Purchased fuel for the truck, paying $150 on account. (Credit Accounts Payable)
28 Performed delivery services on account, $900.
29 Paid office rent, $1,200, for the month of December.
30 Paid $150 on account.
31 Micron withdrew cash of $2,600.

Use the following accounts: Cash, Accounts Receivable, Office Supplies, Prepaid insurance, Trucks, Accumulated Depreciation-
Truck, Accounts Payable, Notes Payable, Salaries Payable, Micron Capital, Micron Withdrawals, Income Summary, Service
Revenue, Salaries Expense, Depreciation Expense-Truck, Insurance Expense, Fuel Expense, Rent Expense, Supplies Expense,

Adjustment Data

a. Accrued Salaries Expense, $1,100

b. Depreciation was recorded on the truck using the straight-line method. Assume a useful life of 5 years and a
salvage value of $2,000
c. Prepaid Insurance for the moth has expired.
d. Office Supplies on hand, $250
e. Unearned Revenue earned during the month, $1,400
f. Accrued Service Revenue, $1,050.

Requirements:
Complete the following on the attached work papers

i Prepare the journal entries and post to the T-accounts.

Prepare an unadjusted trial balance.
~? Prepare the adjusting entries and post to the T-accounts.
v~ Prepare an adjusted trial balance.
v5. Prepare the income statement, the statement of owner's equity, and a classified balance sheet. Use proper formatting
j techniques including headings, dollar signs, and underlining.
·fl. Prepare the closing entries and post to the T-accounts.
v 7. Prepare a post-closing trial balance.

l
 GENERAL JOURNAL
DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT
Record Transactions, Adjusting Entries, Closing Entries in this journal
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'-----
 GENERAL JOURNAL

DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT

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 GENERAL LEDGER

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---
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"--------
 Unadjusted Trial Balance

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'-------
 Adjusted Trial Balance

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"-------
 Income Statement

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"

Statement of Changes m Owner's EqmfY

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I '-------
 Balance Sheet

Assets Liabilities
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'

10
 Post-Closing Trial Balance

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"

11

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