AC499 Bachelors Capstone in Accounting | Unit 2 and 3 assignment

Unit 2 Assignment: Management Tools Application

For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2013, Dustin decided to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into the following transactions during June:

 Date                                                                                                                                     Transaction

June 1                                                                   The following assets were received from Dustin Larkin:

Cash, $10,000; Accounts receivable $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received.

June 1                                                                   Paid three months' rent on a lease rental contract, $4,500.

June 2                                                                   Paid the premiums on property and casualty insurance policies, $1,800.

June 4                                                                   Received cash from clients as an advance payment for services to be provided (Record it as unearned fees), $3,000.

June 5                                                                   Purchased additional office equipment on account from Crawford Company, 1,800. June 6.

June 6                                                                   Received cash from clients on account, $800.

June 10                                                                 Paid cash for a newspaper advertisement to run during June, $120.

June 12.                                                               Paid Crawford Company for part of the debt incurred on June 5, $800.

June 12.                                                               Recorded services provided on account for the period June 1 to June 12, $2,250.

June 1                                                                   Paid part-time receptionist for 2 weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).

June 17                                                                 Recorded cash from cash clients for fees earned during the period June 1-16, $3,175.

June 18                                                                 Paid cash for supplies, $750.

June 20                                                                 Recorded services provided on account for the period June 13-20, $1,100.

June 24                                                                 Recorded cash from cash clients for fees earned for the period June 17-24, $1,850.

June 26                                                                 Received cash from clients on account, $1,600.

June 27                                                                 Paid part-time receptionist for two weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).

June 29                                                                 Paid telephone bill for June, $130.

June 30                                                                 Paid electricity bill for June, $200.

June 30                                                                 Recorded cash from cash clients for fees earned for the period June 25-30, $2,050

June 30                                                                 Recorded services provided on account for the remainder of June, $1,000.

June 30                                                                 Dustin withdrew $4,500 for personal use.

Instructions-Use the Excel template provided in the class titled “Unit 2 and 3 Management Tools Assignment” to complete the following 3 requirements for Unit 2:

 1.            Journalize each transaction in the two-column journal tab, referring to the following chart of accounts in selecting the accounts to be debited and credited.

11-Cash                31-Dustin Larkin, Capital

12-Accounts Receivable                32-Dustin Larkin, Drawing

14-Supplies         41-Fees Earned

15-Prepaid Rent               51-Salary Expense

16-Prepaid Insurance     52-Rent Expense

18-Office Equipment      53-Supplies Expense

19-Accumulated Depreciation    54-Depreciation Expense

21-Accounts Payable      55-Insurance Expense

22-Salaries Payable         59-Miscellaneous Expense

23-Unearned Fees         

 2.            Post the journal to a ledger of four-column accounts, see the Excel tab labeled accordingly.

3.            Prepare a trial balance as of June 30, 2013 – using the tab in the Excel workbook labeled accordingly.

Be sure and save your work, you will complete the accounting cycle in Unit 3 using the same Excel Template and information.

Notes:

1)    Proper Journal Entry Formatting is mandatory.

a.    Debit Account Descriptions are to be fully left-justified in the line.

b.    Credit Account Descriptions are to be indented in the cell.

c.     A short description is required for every journal entry.

2)    You will be required to create at least ONE additional general Ledger Account to accommodate a few Journal Entries.

3)    You may need to add the “Miscellaneous Expense" account to the General Ledger.

4)    Or, you may create 2 or 3 new G/L accounts. For example, "Utilities."

5)    Be sure that you use proper formatting when you create the Financial Statements. For example:

a.    Add required underlining,

b.    "$" signs must be properly formatted.

6)    The templates are NOT fully “pre-formatted.” You must reformat them for proper presentation in a number of places.

Remember, if you have any questions, concerns, or doubts about any of the instructions, please contact your instructor in the Virtual Office as soon as possible.

 Once completed, submit your assignment to the Unit 2 assignment Dropbox. The assignment is due Tuesday 11:59 p.m. ET of their assigned unit.