Project - Transactions/Instructions
This project is a review of the accounting cycle that has been covered during class. You have two weeks to complete the project. Please prepare all information in a professional manner and show details as needed. You must complete this project using the Excel Template I furnished that is located in Blackboard (save the Template to your Drive in order to work on it).
Read the entire project and review all information priorto starting.
On August 2, 2004, Jerry Andrews, a dentist, opened a dental office. The followingtransactions were completed during the first month of operations:
Aug 2 Jerry invested $20,000 cash and $13,200 worth of dental equipment in the business in exchange for common stock in a new corporation called J.A. Dentist, Inc.
Aug 3 Paid two months' rent of $2,000.
Aug 4 Purchased $1,000 of dental supplies and paid cash.
Aug 4 Paid insurance premiums of $3,600 for a 1-year insurance policy.
Aug 6 Earned and collected dental fees of $14,600 in cash during the week.
Aug 9 Paid secretary a salary of $1,200.
Aug 10 Purchased $300 of dental supplies on account.
Aug 11 Purchased an automobile for business use. It cost $13,000. Jerry paid $3,000 cash and signed a note payable for the balance.
Aug 13 Received a $240 telephone bill that will be paid later in the month.
Aug 13 Billed customers $6,000 for dental fees earned during the week.
Aug 16 Received a $150 electric bill that will be paid later in the month.
Aug 18 Paid $300 for dental supplies purchased on Aug 10.
Aug 20 Earned and collected dental fees of $4,500 in cash during the week.
Aug 23 Paid secretary a salary of $1,200.
Aug 23 Received a $75 water bill that will be paid in September.
Aug 24 Paid $450 for advertising in a local newspaper.
Aug 25 Received $2,500 from customers on account.
Aug 27 Paid a dividend of $3,500 to Jerry Andrew the sole stockholder.
Aug 30 Paid the telephone and utility bills.
Aug 30 Billed customers $2,000 for dental fees earned during the week.
Aug 31 Received $1,500 from customers on account.
Required:
1. Record the general journalentries for August 2004 transactions on the Journal Pages tab within the Excel Template (you may omit account descriptions and posting references).
2. Post the general journal entries on the General Ledger tab.
3. Prepare the trial balanceto record the accounts' ending balances as of August 31, 2004 on the Trail Balance tab.
4. Record the adjusting entries on the Journal Pages tab and thenpost the adjusting entries to the general ledger on the General Ledger tab. Take the following transactions into consideration:
a. Dental supplies on hand at the end of the month amount to $350.
b. Make adjusting entry for the insurance premiums expired.
c. Accrued $840 for salary earned that will be paid in September.
d. Do you need an adjustment for rent expense?
e. Ignore depreciation for this month. No adjustment needed.
5. Prepare the adjusted trial balanceto adjust the accounts that were affected as of August 31, 2004 on the Adjusted Trail Balance tab.
6. Prepare the Financial Statements (Income Statement, Statement of Retained Earnings and Balance Sheet) as of August 31, 2004 on the Financial Statements tab.
7. Since August 31, 2004 is the end of the fiscal year, record the closing entries on the Journal Pages tab and thenpost the closing entries to the general ledger on the General Ledger tab.
8. Prepare a post-closing trial balanceto close the accounts that were affected as of August 31, 2004 on the Post-Closing Trail Balance tab.
Note: the Journal Pages and the General Ledger tabs should include all of the General Journal Entries, Adjusting Entries and Closing Entries.