Practice Set - Assignment 1 - Service Business Accounting Cycle
HUMBER COLLEGE
THE BUSINESS SCHOOL
ACT 103- FINANCIAL ACCOUNTING I
ACCOUNTING CYCLE ASSIGNMENT – INDIVIDUAL
GRADE VALUE
DUE DATE: OCTOBER 2013
EACH STUDENT IS REQUIRED TO SUBMIT THE HARD COPY
(TYPED) OF THE ASSIGNMENT AT THE BEGINNING OF THE CLASS.
DAUE DATE IS NOT NEGOTIABLE.
PRACTICE SET – (YOUR NAME) ACCOUNTING SERVICES
Service Business Accounting Cycle
Assume that you are starting a new business, (YOUR NAME) Accounting Services, with a new partner, Harry Fowl. Harry has had some existing business and you are leaving a position at a larger firm. You’ve decided for liability purposes to set yourself up as a small corporation. You agree to set up shop at the start of December to allow yourselves time to get ready for the upcoming tax (“busy”) season. Your partner has some existing clients that will now be clients of your new firm.
The chart of accounts for (YOUR NAME) Accounting Services is listed below.
Follow the instructions to complete the accounting records for the month of
December.
_____________ ACCOUNTING SERVICES
Chart of Accounts
ASSETS
101
Cash
111
Accounts Receivable
119
Allowance for Doubtful Accounts
121
Supplies
131
Prepaid Rent
134
Prepaid Insurance
141
Equipment
142
Accumulated Depreciation - Equipment
LIABILITIES
202
Accounts Payable
211
Unearned Revenues
OWNERS’ EQUITY
301
Common Stock
302
Paid in Capital
309
Retained Earnings
REVENUE
410
Fees Income
EXPENSES
511
Salaries Expense
514
Utilities Expense
517
Supplies Expense
520
Rent Expense
523
Depreciation Expense – Equipment
526
Insurance Expense
529
Advertising Expense
532
Telephone Expense
535
Maintenance Expense
540
Bad Debt Expense
REQUIRED:
1. Analyze each transaction below and record it in the general journal.
2. Post the transactions for the general ledger accounts.
3. Prepare a trial balance.
4. Prepare the adjusting entries using the following information:
a. Compute and record the adjustment for
THE BUSINESS SCHOOL
ACT 103- FINANCIAL ACCOUNTING I
ACCOUNTING CYCLE ASSIGNMENT – INDIVIDUAL
GRADE VALUE
DUE DATE: OCTOBER 2013
EACH STUDENT IS REQUIRED TO SUBMIT THE HARD COPY
(TYPED) OF THE ASSIGNMENT AT THE BEGINNING OF THE CLASS.
DAUE DATE IS NOT NEGOTIABLE.
PRACTICE SET – (YOUR NAME) ACCOUNTING SERVICES
Service Business Accounting Cycle
Assume that you are starting a new business, (YOUR NAME) Accounting Services, with a new partner, Harry Fowl. Harry has had some existing business and you are leaving a position at a larger firm. You’ve decided for liability purposes to set yourself up as a small corporation. You agree to set up shop at the start of December to allow yourselves time to get ready for the upcoming tax (“busy”) season. Your partner has some existing clients that will now be clients of your new firm.
The chart of accounts for (YOUR NAME) Accounting Services is listed below.
Follow the instructions to complete the accounting records for the month of
December.
_____________ ACCOUNTING SERVICES
Chart of Accounts
ASSETS
101
Cash
111
Accounts Receivable
119
Allowance for Doubtful Accounts
121
Supplies
131
Prepaid Rent
134
Prepaid Insurance
141
Equipment
142
Accumulated Depreciation - Equipment
LIABILITIES
202
Accounts Payable
211
Unearned Revenues
OWNERS’ EQUITY
301
Common Stock
302
Paid in Capital
309
Retained Earnings
REVENUE
410
Fees Income
EXPENSES
511
Salaries Expense
514
Utilities Expense
517
Supplies Expense
520
Rent Expense
523
Depreciation Expense – Equipment
526
Insurance Expense
529
Advertising Expense
532
Telephone Expense
535
Maintenance Expense
540
Bad Debt Expense
REQUIRED:
1. Analyze each transaction below and record it in the general journal.
2. Post the transactions for the general ledger accounts.
3. Prepare a trial balance.
4. Prepare the adjusting entries using the following information:
a. Compute and record the adjustment for