Accounting Cycle Assignmentt Updated Fall 2021
ACCOUNTING CYCLE ASSIGNMENT
Due Nov 29th, 2021
Service Business Accounting Cycle
On July 1, 2021 a new incorporated self-storage business, _(your last name)__ Storage Inc. is
formed. The chart of accounts for _(your last name)__ Storage Inc. is listed below. Follow the
instructions to complete the accounting records for the month of July.
XXXXXXXXXX__(your last name)__ STORAGE INC.
XXXXXXXXXXChart of Accounts
ASSETS
101 Cash
111 Accounts Receivable
121 Supplies
134 Prepaid Insurance
137 Land
141 Buildings
142 Accumulated Depreciation - Buildings
LIABILITIES
202 Accounts Payable
211 Salaries Payable
222 Bank Loan Payable
OWNERS’ EQUITY
301 Common Shares
309 Retained Earnings
311 Dividends
REVENUE
410 Storage Fees Earned
EXPENSES
511 Salaries Expense
517 Supplies Expense
523 Depreciation Expense
525 Interest Expense
526 Insurance Expense
532 Telephone Expense
535 Repairs Expense
601 Income Summary
TRANSACTIONS Worth 8 marks of the Final Grade
July
1 $XX,XXX of common shares in the new company are sold for cash.
1 Purchased land and building, worth $120,000 and $240,000 respectively by bo
owing all
the funds from the bank on a long-term loan.
1 Paid $10,800 for the premium on a one-year insurance policy effective today.
2 Purchased $5,600 of office supplies for cash.
14 Paid an employee $1,800 for two weeks' salary.
21 Summarized and recorded the billings to customers for the first three weeks of July for
storage fees earned. Billings totaled $15,000.
28 Received $9,000 from customers in partial settlement of accounts billed on the 21st.
28 Paid another $1,800 for two weeks' salary.
29 Paid the month's $600 phone bill.
30 Repaired leaking roofs for $1,700 on account.
31 Paid out dividends to shareholders of $3,200.
31 Made a payment to the bank of $1,000 interest and $4,000 to pay the amount owing for the
ank loan.
Use the following information to journalize and post the adjustments for the
month.
a. One month's insurance coverage was consumed.
. There was $3,100 of office supplies on hand at the end of the month.
c. Depreciation on the buildings was estimated to be $2,400 per month.
d. The employee had earned $360 of unpaid and unrecorded salary.
e. The company had earned $1,900 of storage fees that had not yet been billed.
REQUIRED:
1. Analyze each transaction and record it in the general journal.
2. Post the transactions to T accounts.
3. Prepare an adjusted trial balance as at July 31.
4. Prepare an income statement for the month.
5. Prepare a statement of changes in equity.
6. Prepare a classified statement of financial position. (Note: $48,000 of the bank loan is
due within the next year.)
7. Prepare closing journal entries.
8. Post the closing entries to T accounts.
9. Prepare a post-closing trial balance.
The $xx,xxx should match the last five digits from your student number. If it
happens to have a lot of zeros in your number contact me and I will give you a
number. ↓