CASE STUDY - THE COMPLETE ACCOUNTING CYCLE
Name: Jackie Paulson
This Case Study is worth 100 points, or 10% of your final course grade.
This Case Study relates to TCOs E and F, and Chapters 2 and 3.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 sheets in the Workbook, including this one.
All of the information that you need for the project is located in this Workbook.
Requirements Sheet in Workbook
Requirement 1—Prepare the Journal Entries in the General Journal Journal
Entries Requirement 2—Post Journal Entries to the General Ledger General
Ledger Requirement 3—Prepare a Trial Balance Trial Balance
Requirement 4—Prepare the Adjusting Entries Adjusting Entries
Requirement 5—Post Adjusting Entries to the General Ledger General Ledger
Requirement 6—Prepare an Adjusted Trial Balance Adjusted Trial
Balance
Requirement 7—Prepare the Financial Statements Financial Statements
Requirement 8—Prepare the Closing Entries Closing Entries
Requirement 9—Post Closing Entries to the General Ledger General Ledger
Requirement 10—Prepare the Post Closing Trial Balance Post-Closing Trial
Balance
Hint for success: Review the Week 2 Lesson prior to starting this projec
There are also hints contained within certain cells on some of the Works
You can hover over the red pointer at the top right-hand corner of the ce
Hints are provided for the following balances:
1) The debits for the journal entries are on the Journal Entries tab.
2) The credits for the journal entries are on the Journal Entries tab.
3) The cash balance is on the General Ledger tab.
4) The debits for the trial balance are on the Trial Balance tab.
5) The credits for the trial balance are on the Trial Balance tab.
6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.
7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.
8) Net income for the income statement is on the Financial Statements tab.
9) Retained earnings as of July 31 are on the Financial Statements tab.
10) Total assets for the balance sheet are on the Financial Statements tab.
11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab
12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
,t.
heet tabs.
ll to read the hint.
.
, During its first month of operation, the Quick Tax Corporation, which specializes in tax
preparation, completed the following transactions.
July 1 Began business by making a deposit in a company bank account of $40,000,
in exchange for 4,000 shares of $10 par value common stock.
July 3 Paid the current month's rent, $2,500 x 12 = 30,000
July 5 Paid the premium on a 1-year insurance policy, $3,600
300 month July 7
Purchased supplies on account from Little Company, $700.
July 10 Paid employee salaries, $2,800
July 14 Purchased equipment from Lake Company, $9,500. Paid $1,500 down and the balance was
placed on account. Payments will be $500.00 per month for 20 months. The first payment is
due 8/1. Note: Use accounts payable for the balance due.
July 15 Received cash for preparing tax returns for the first half of
July, $6,500 July 19 Made payment on account to Lake Company, $500.
July 31 Received cash for preparing tax returns for the last half of
July, $8,250 July 31 Declared and paid cash dividends of $450.
Prepare journal entries to record the July transactions in the General Journal below.
General Journal
Date Description(Account Name) Debit Credit
July 1 Cash 40,000
Common Stock 40,000
July 3 Rent Expense 2,500
Cash 2,500
July 5 Pre Paid Insurance 3,600
Cash 3,600
July 7 Supplies 700
Accounts Payable 700
July 10 Salaries Expense 2,800
Cash 2,800
July 14 Equipment 9,500
Cash 1,500
Accounts payable 8,000
July 15 cash 6,500
Tax prepreation 6,500
July 19 Accounts Payable 500
Cash 500
July 31 Accounts Payable 8,250
Name: Jackie Paulson
This Case Study is worth 100 points, or 10% of your final course grade.
This Case Study relates to TCOs E and F, and Chapters 2 and 3.
MAKE SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.
There are 10 sheets in the Workbook, including this one.
All of the information that you need for the project is located in this Workbook.
Requirements Sheet in Workbook
Requirement 1—Prepare the Journal Entries in the General Journal Journal
Entries Requirement 2—Post Journal Entries to the General Ledger General
Ledger Requirement 3—Prepare a Trial Balance Trial Balance
Requirement 4—Prepare the Adjusting Entries Adjusting Entries
Requirement 5—Post Adjusting Entries to the General Ledger General Ledger
Requirement 6—Prepare an Adjusted Trial Balance Adjusted Trial
Balance
Requirement 7—Prepare the Financial Statements Financial Statements
Requirement 8—Prepare the Closing Entries Closing Entries
Requirement 9—Post Closing Entries to the General Ledger General Ledger
Requirement 10—Prepare the Post Closing Trial Balance Post-Closing Trial
Balance
Hint for success: Review the Week 2 Lesson prior to starting this projec
There are also hints contained within certain cells on some of the Works
You can hover over the red pointer at the top right-hand corner of the ce
Hints are provided for the following balances:
1) The debits for the journal entries are on the Journal Entries tab.
2) The credits for the journal entries are on the Journal Entries tab.
3) The cash balance is on the General Ledger tab.
4) The debits for the trial balance are on the Trial Balance tab.
5) The credits for the trial balance are on the Trial Balance tab.
6) The debits for the adjusted trial balance are on the Adjusted Trial Balance tab.
7) The credits for the adjusted trial balance are on the Adjusted Trial Balance tab.
8) Net income for the income statement is on the Financial Statements tab.
9) Retained earnings as of July 31 are on the Financial Statements tab.
10) Total assets for the balance sheet are on the Financial Statements tab.
11) Total liabilities and shareholders' equity for the balance sheet are on the Financial Statements tab
12) The debits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
13) The credits for the post-closing trial balance are on the Post-Closing Trial Balance tab.
,t.
heet tabs.
ll to read the hint.
.
, During its first month of operation, the Quick Tax Corporation, which specializes in tax
preparation, completed the following transactions.
July 1 Began business by making a deposit in a company bank account of $40,000,
in exchange for 4,000 shares of $10 par value common stock.
July 3 Paid the current month's rent, $2,500 x 12 = 30,000
July 5 Paid the premium on a 1-year insurance policy, $3,600
300 month July 7
Purchased supplies on account from Little Company, $700.
July 10 Paid employee salaries, $2,800
July 14 Purchased equipment from Lake Company, $9,500. Paid $1,500 down and the balance was
placed on account. Payments will be $500.00 per month for 20 months. The first payment is
due 8/1. Note: Use accounts payable for the balance due.
July 15 Received cash for preparing tax returns for the first half of
July, $6,500 July 19 Made payment on account to Lake Company, $500.
July 31 Received cash for preparing tax returns for the last half of
July, $8,250 July 31 Declared and paid cash dividends of $450.
Prepare journal entries to record the July transactions in the General Journal below.
General Journal
Date Description(Account Name) Debit Credit
July 1 Cash 40,000
Common Stock 40,000
July 3 Rent Expense 2,500
Cash 2,500
July 5 Pre Paid Insurance 3,600
Cash 3,600
July 7 Supplies 700
Accounts Payable 700
July 10 Salaries Expense 2,800
Cash 2,800
July 14 Equipment 9,500
Cash 1,500
Accounts payable 8,000
July 15 cash 6,500
Tax prepreation 6,500
July 19 Accounts Payable 500
Cash 500
July 31 Accounts Payable 8,250
