Comprehensive Accounting Cycle Review Problem

Student Name Travis Cross

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
12/1

12/1

12/1

12/9

12/10

12/19

12/22

12/26

12/31

ACCOUNT TITLES AND EXPLANATION

DEBIT

Cash
Williamson, capital
Owner contribution for capital

50000

Equipment
Cash
Paid cash for equipment

10800

Prepaid insurance
Cash
Paid for 9 months insurance

4500

Land
Cash
Paid cash for land

18000

Office supplies
Accounts payable
Office supplies paid on account

3000

Cash
Notes Payable
Loan from a bank for business use

28000

Advertising expense
Cash
Paid cash for advertising

800

Accounts payable
Cash
Paying cash on account

1000

Cash
Accounts receivable
Service revenues
Record service revenues for December

17500
2700

CREDIT
50000

10800

4500

18000

3000

28000

800

1000

20200

GENERAL JOURNAL
DATE
12/31

12/31

12/31

12/31

13/31

12/31

12/31

12/31

12/31

12/31
12/31

ACCOUNT TITLES AND EXPLANATION

DEBIT

Salaries expense
Rent expense
Cash
To record expenses

3600
700

Cash
Unearned revenue
To record cash received for services next month

1440

Williamson, withdrawals
Cash
To recorder owners withdrawals

3000

Supplies expense
Office supplies
To record office supplies used
Depreciation expense equipment
Accumulated depreciation equipment
To record depreciation on equipment
Insurance expense
Prepaid insurance
To record insurance expense
Interest expense
Interest payable
To accrue interest expense
Service revenue
Income statement
To close service revenue
Income summary
Salaries expense
rent
Advertising
supplies
insurance
interest
Depreciation equipment/to close rent expenses
Income statement
Williamsons capital/to close income statement
Williamson capital
Williamson withdrawals

600

CREDIT

4300

1440

3000

600
180
180
500
500
75
75
20200
20200
6455
3600
700
800
600
500
75
180
13745
13745
3000
3000

GENERAL LEDGER

Cash

50000

10800

28000

4500

17500

18000

1440

800

Accts. Rec

Office Supplies

2700

3000

600

Prepaid Insurance
4500

500

1000
4300
3000

Equipment

10800

Accum. Deprec. Equip.

Land

Accounts Payable

18000

1000

3000

180

Utilities Payable

Interest Payable

Unearned Revenue

75

Capital-Williamson

Withdrawals

3000

3000

50000

Notes Payable-Williamson

1440

Service Revenue

3000

20200 20200

13745

28000

Salaries Expense
3600

3600

Rent Expense
700

Advertising Expense

700

Insurance Expense
500

Utilities Expense

500

800

Interest Expense
75

800

Depreciation Exp. Equip.

75

180

180

Supplies Expense
600

600

Income Summary
6455 20200
13745

Unadjusted Trial Balance

Debits
Cash
Accounts Receivable
Office supplies
Prepaid insurance
Equipment
Land
Accounts payable
Unearned revenue
Notes Payable - Williamson
Capital - Williamson
Withdrawals Williamson
Service Revenue
Salaries expense
Rent Expense
Advertising expense

54540
2700
3000
4500
10800
18000

Totals

101640

Credits

2000
1440
28000
50000
3000
20200
3600
700
800

101640

Adjusted Trial Balance

Debits
Cash
Accounts receivable
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation equipment
Land
Accounts payable
Interest payable
Unearned revenues
Notes payable Williamson
Capital Williamson
Withdrawals Williamson
Service Revenues
Salaries expense
Rent expense
Advertising expense
Supplies expense
Insurance expense
Interest expense
Depreciation expense equipment

Credits

54540
2700
2400
4000
10800
180
18000
2000
75
1440
28000
50000
3000
20200
3600
700
800
600
500
75
180

total

101895 101895

Income Statement

Revenues
Service revenues
Expenses

20200

Salaries
Rent
Advertising
supplies
Insurance
Interest
Depreciation
Total expenses
Net income

3600
700
800
600
500
75
180
6455
13745

Statement of Changes in Owners Equity

Williamson capital dec 1 2015

Owner contributions
Net income for the mont

0
50000
13745
63745
(3000)
60745

Owner withdrawals
Williamson capital dec 31 2015

Balance Sheet
Assets

Liabilities

Cash
54540
Accounts receivable
2700
Office supplies
2400
Prepaid insurance
4000
Equipment
10800
Accumulated depreciation equipment (180)
Land
18000

Accounts payable
Interest payable
Unearned revenue
Notes payable williamson

2000
75
1440
28000

Owners Equity
Williamson capital
60745
Total Assets

92260

Total liabilities and owners equity

10

92260

Post-Closing Trial Balance

Debits
Cash
Accounts recievable
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation equipment
Land
Accounts payable
Interest payable
Unearned revenue
Notes payable Williamson
Williamson capital

54540
2700
2400
4000
10800

Total

92260

Credits

180
18000
2000
75
1440
28000
60745

11

92260