The purpose of this activity is to walk you through the whole accounting process involving a servicing company called September Oaks Inc. We will…

The purpose of this activity is to walk you through the whole accounting process involving a servicing
company called September Oaks Inc.
We will start with what we’ve learned from chapter 1 up to chapter 6. The project starts by journalizing
transactions from source documents, posting these transactions, making adjusting entries, creating
trial balances, creating financial statements, and then finally closing the accounting period so that the
permanent and temporary accounts are ready for the next accounting period. You are the Senior Accountant for September Oaks Inc. The following information and directions are
given to you. Make sure you follow all directions precisely because as an accountant, you know that
one little mistake can cause you a whole lot of work later on.
Below is the Trial Balance as of the beginning of December, 2017.
Trial Balance as of December 1, 2017
Trial Balance Account Title Debits Credits Cash
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Land
Accumulated Depreciation
Accounts Payable
Salaries Payable
Interest Payable
Unearned Service Revenue
Note Payable
Gallow, Joy, Capital
Gallow, Joy, Withdrawal
Service Revenue
Depreciation Expense
Insurance Expense
Salaries Expense
Rent Expense
Supplies Expense
Utilities Expense
Interest Expense 245,000
97,500
12,000
6,050
5,500
150,000
147,800 Total 738,850 44,025
61,000
78,500
18,200
12,100
69,800
159,500
75,000
295,725
0
0
0
0
0
0
0 738,850 During the month of December, the following transactions occurred:
December 1
Purchased additional equipment in amount of $25,900
1
Prepaid for 3 months of insurance for new equipment bought, $2,100
5
Performed services on account, $2,500
7
Purchased supplies on account for $1,900
10
Received cash on account in amount of $29,000
12
Paid salary expense in amount of $15,900
15
Paid utilities expense in amount of $590
19
Owner withdrew $5,900 for Christmas shopping
21
Paid cash to acquire more land, $160,000
22
Collected cash on account, $1,500
23
Collected cash from a customer in advance for services to be performed later
in amount of $10,590
29
Paid interest expense in amount of $2,400
30
Performed more services on account, $9,800 The following are adjusting entries for the month of December 2017:
December 31
31
31
31
31
31
31 Supplies on hand at December 31st was $7,910
One month of prepaid insurance has expired from the December 1st
transaction
Used up $3,950 of the equipment through depreciation
The weekly payroll is $2,500 (5-days). This year the payroll ended on a Tuesday.
Earned $15,900 of unearned revenue during December
Rent expired during the month totaled, $2,500
On September 1, 2017 the Notes Payable account had a balance of $69,800.
The balance represents a 6-month, 10% note. Accrue for interest expense.
*Round to the nearest whole dollar! Requirements:
It’s very crucial that ALL these steps are done in the order that is listed below.
1. Transfer all the account balances from the trial balance to the T-accounts
2. Journalize all the transactions that happened from December 1st through the 30th.
3. Post the journal entries to the T-accounts and transfer those totals to the worksheet!
4. Prepare the adjusting entries as of December 31st
5. On the worksheet provided, place each adjusting entry next to the account that was effected
6. Total up all accounts on the Adjusted Trial Balance after adjusting entries are entered
7. Transfer all amounts to either the Balance Sheet or Income Statement columns of the worksheet
8. Prepare the income statement, the statement of owner’s equity, and the balance sheet
9. Prepare the necessary closing entries
10. Prepare a post-closing trial balance for the next accounting period
***A blank post-closing trial balance is included, you need to enter in the account titles along with
the balances
***If you have any questions at all, do not hesitate to ask. Journal Entries
Dates Journal Entries
1-Dec Equipment
Cash 1-Dec 5-Dec Prepaid 3 months Insurance
Cash
Services
Accts Receivable 7-Dec Supplies
Accts Payable 10-Dec Accts Payable
Cash 12-Dec Salaries Expense
Cash 15-Dec Utilities Expense
Cash 19-Dec Owner, Drawing
Cash 21-Dec Land Purchase
Cash 22-Dec Cash
Acct Receivable 23-Dec Cash
Advanced Services 29-Dec Interest Expense
Cash 30-Dec Acct Rec
Fees Income Adjusting Entries
a b c d e f g Closing Entries
Date Post-Closing Trial Balance
Accounts DEBIT
CREDIT
25,900
25,900 You are not required to use T-accounts. I’ve supplied them solely for your be
graded but I enourage the utilization of T-accounts to help you calculate a
balances in accounts.
T-Accounts 2,100
2,100 Cash Salaries Payable 2,500
2,500
1,900
1,900 Interest Payable 29,000
29,000
15,900 Accounts receivable Unearned Ser. Rev. 15,900
590
590
Gallow, Joy, Capital
5,900
5,900
160,000
160,000
Supplies Gallow, Joy, WD 1,500
1,500
10,590
10,590 Service Revenue
Prepaid insurance 2,400
2,400
9,800
9,800 Prepaid rent Depreciation expense Equipment Insurance expense Land Debit Credit ied them solely for your benefit. It will not be
unts to help you calculate accurate ending
ccounts. nts
Note Payable Supplies expense Utilities expense Interest expense Accum. Depr Account payable Rent expense Salaries expense Work Sheet
Account
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Land
Accumulated Depreciation
Accounts Payable
Salaries Payable
Interest Payable
Unearned Service Revenue
Note Payable
Gallow, Joy, Capital
Gallow, Joy, Withdrawal
Service Revenue
Depreciation Expense
Insurance Expense
Salaries Expense
Rent Expense
Supplies Expense
Utilities Expense
Interest Expense
Total Trial Balance
Debit
Credit Adjustments
Debit
Credit Adj. Trial Balance Income Statement Balance Sheet
Debit
Credit
Debit
Debit
Credit Income Statement Statement of Owner’s Equity Balance Sheet Assets Liabilities Owner’s Equity

The purpose of this activity is to walk you through the whole accounting process involving a servicing company called September Oaks Inc. We will…
The purpose of this activity is to walk you through the whole accounting process involving a servicing company called September Oaks Inc. We will…



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