GSLC Forum Information

Course ID : ACCT6300
Course Name : Introduction to Accounting
Teaching Week : 3 – Session 5
Date of Class : Monday, 11 October 2021
Date of Latest Respond : Monday, 18 October 2021
Book Reference : Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso (2018).
Financial Accounting with International Financial Reporting
Standards. Hoboken: John Wiley & Sons, Inc.

Chapter 4: Completing the Accounting Cycle

Complete all steps in accounting cycle.

Anya Clark opened Anya’s Cleaning Service on July 1, 2020. During July, the following
transactions were completed.

The chart of accounts for Anya’s Cleaning Service contains the following accounts: No. 101
Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157
Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No.
212 Salaries and Wages Payable, No. 311, Share Capital—Ordinary, No. 320 Retained
Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631
Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722
Insurance Expense, and No. 726 Salaries and Wages Expense.

Adelia Yulma Budiarto, S.A, MSc. – ACCT6083

Instructions:
a. Journalize and post the July transactions. Use page J1 for the journal and the three-
column form of account.
b. Prepare a trial balance at July 31 on a worksheet.
c. Enter the following adjustments on the worksheet and complete the worksheet.
- Unbilled and uncollected revenue for services performed at July 31 were €2,700.
- Depreciation on equipment for the month was €500.
- One-twelfth of the insurance expired.
- An inventory count shows €600 of cleaning supplies on hand at July 31.
- Accrued but unpaid employee salaries were €1,000.
d. Prepare the income statement and a retained earnings statement for July and a
classified statement of financial position at July 31.
e. Journalize and post adjusting entries. Use page J2 for the journal.
f. Journalize and post-closing entries and complete the closing process. Use page J3 for
the journal.
g. Prepare a post-closing trial balance at July 31.

Hint:
a. Trial balance €37,700
b. Adjusted trial balance €41,900
c. Net income €6,900
d. Total assets €34,300
e. Post-closing trial balance €34,800

Adelia Yulma Budiarto, S.A, MSc. – ACCT6083