In this Individual Project, you will demonstrate an understanding of how to complete the accounting cycle steps. This will provide understanding on the importance of this cycle and the steps for accurate financial reporting.
You will complete financial statements for a company using the data listed below.
- 4/1: Jim invested $100,000 in cash and $50,000 in equipment in the company.
- 4/2: The company prepaid for insurance with $1,200 cash.
- 4/3: The company paid cash for rent totaling $1,200.
- 4/5: The company completed services for a client for cash totaling $8,000.
- 4/10: The company provided a service for $15,000 on account.
- 4/11: The company purchased equipment for $5,000 and supplies for $3,000 on account.
- 4/15: The company paid $1,500 cash for employee salaries.
- 4/24: The company paid $300 cash for utility bills.
- 4/28: The company paid dividends totaling $2,000 cash.
Adjusting entries completed on April 30
- Insurance expired for the month of April.
- An ending count determined that supplies totaled $2,600.
- Wages of $3,000 were earned but not paid.
- Services of $5,000 were earned but not billed.
- Depreciation on the equipment is $500 per month.
Using the above data, complete the following:
- Journal entries
- Posting to T-accounts
- Trial balance
- Adjusting entries
- Adjusting trial balance
- Income statement
- Statement of retained earnings
- Balance sheet and closing entries