You have been hired as an accountant for ktzfig consulting inc. this business was created when some friends decided to make use of their newly minted college degrees and go into business together. the business was created on july 1, 2018. the company will have a fiscal year end of june 30. the initial formation transactions and early purchases for ktzfig consulting inc. resulted in the balances that are included in the first 2 columns of the worksheet. (see the worksheet tab)
you have been hired as an accountant for ktzfig consulting inc. this business was created when some friends decided to make use of their newly minted college degrees and go into business together. the business was created on july 1, 2018. the company will have a fiscal year end of june 30. the initial formation transactions and early purchases for ktzfig consulting inc. resulted in the balances that are included in the first 2 columns of the worksheet. (see the worksheet tab)
during july, the first month of operations, the following transactions occurred:
event
borrowed 25,000 from the bank for operating cash. the note has a 6% interest rate (simple interest) and is to be paid back in 5 years
purchased office furniture for $9,865.
paid $13,800 for 12 months rent on office space
received $11,400 from sboard inc. for work to be performed over the next 12 months.
paid $1,275 for utilities.
paid $8,975 for purchases of supplies previously made on account.
performed services for various customers for $12,750 cash and another $15,780 on account.
collected $11,680 as payment for amounts previously billed.
purchased $10,660 of additional office supplies on account.
paid salaries to employees totaling $3,850 for 1 week.
dividends of $1,000 were declared and paid.
at the end of july, the following additional information is available to determine what adjustments are needed:
additional work for customers of $5,980 has been performed during the last week of july but not yet billed
one month of interest has accrued on the note payable for the bank loan.
supplies on hand are $4,785.
one month of the prepaid rent has been used up
one month of the services for sboard inc. has been performed (see above).
salaries of $3,850 are paid every friday (for a 5 day work week). july 30, 2018 was a tuesday.
depreciation expense for the computer equipment is $140 and for the office furniture is $120
date account debit credit
1-jul cash 25,000
notes payable 25,000
3-jul office furniture 9,865
cash 9,865
4-jul prepaid rent 13,800
cash 13,800
8-jul cash 11,400
unearned service revenue 11,400
10-jul utilities 1,275
cash 1,275
14-jul accounts payable 8,975
cash 8,975
15-jul cash 12,750
accounts receivable 15,780
service revenue 28,530
26-jul cash 11,680
accounts receivable 11,680
28-jul supplies 10,660
accounts payable 10,660
29-jul wage expenses 3,850
cash 3,850
31-jul dividends 1,000
cash 1,000
126,035 126,035
worksheet - ktzfig consulting inc
beginning numbers july entries unadjusted trial balance adjustments adjusted trial balance
account debit credit debit credit debit credit debit credit debit credit
cash 120,500 22,065 142,565
accounts receivable 4,100 4,100
supplies 8,975 10,660 19,635
prepaid rent 13,800 13,800
land 30,000 30,000
computer equipment 49,500 49,500
accumulated depreciation, comp equip
office furniture 9,865 9,865
accumulated depreciation, off furn
accounts payable 8,975 1,685 10,660
salaries payable
interest payable
unearned revenue 11,400 11,400
long-term notes payable 25,000 25,000
common stock 200,000 200,000
retained earnings
dividends 1,000 1,000
service revenue 28,530 28,530
salaries expense 3,850 3,850
rent expense
supplies expense
utilities expense 1,275 1,275
interest expense
depreciation expense, comp equip
depreciation expense, office furniture
208,975 208,975 66,615 66,615 275,590 275,590
complete adjusting journal entries, the worksheet with the trial balance and adjustments and adjusted trial balance columns, and the worksheet formulas tabs completed .
submit your completed closing entries, the financial statements completed, and the financial statements formulas tab completed.