Instructions and Grading Rubric
For the purpose of grading the project you are required to perform the following tasks:
Step
Instructions
This assignment is to analyze the provided transactions, record the journal entries, post the entries to the T-accounts, and create an adjusted trial balance. A beginning trial balance has been provided and you should begin this project by posting the beginning balances to the T-accounts that have also been provided. You will not need to create any new T-accounts; those you need are provided for you on the Excel Gen Ledger tab.
To help you determine if you have some of the correct transactions recorded, here are some check figures for ending balances in the adjusted trial balance after all entries have been made and posted: Cash: $75,500 Accounts Receivable: $37,700 Service Revenue: $117,400 Prepaid insurance: $3,750 Accounts payable: $5,200 Total debits and total credits: $325,675 On the Gen Ledger tab: Post the beginning balances to the T-accounts from the opening trial balance. All of the T-accounts that you will need have already been created on the Gen Ledger tab.
Using a cell reference populate the T-accounts with their beginning balances from the opening Trial Balance. The easiest way to complete this task is to use the cell reference. Do not manually retype any number.
On the Gen Journal tab: Record the following external transactions. Use column B for the names of the accounts to be debited and column C for the accounts to be credited. Record the debits first and the credits second. Some transactions may require more than two accounts to record the transaction correctly. Columns E and G are for entering the dollar amounts.
a. Provided health services for cash, $28,000, and on account, $83,000 b. Collected on accounts receivable, $56,000 c. Issued shares of common stock in exchange for $100,000 cash d. Paid salaries for the year through December 23, $36,000 cash e. Paid $13,000 cash for utilities, of which $5,500 represents costs previously recorded for the previous year (look at the utilities payable account), and $7,500 is for the current year utility usage f. Received $12,000 cash in advance from customers for services to be provided in the future g. April 1, the company paid $15,000 cash for a one-year insurance policy to cover possible injury to workers. The insurance coverage extends through March 31 of next year h. On August 1 the company borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on July 31 at 9%. The principal is due in four years i. Purchased $5,000 of Supplies on account j. Paid $3,000 on account for the Supplies purchased in (i) k. Purchased $100,000 equipment, all for cash l. Paid $8,000 cash dividends to stockholders.
