Cove
DAVIS CONSULTING
JOURNALS
LEDGERS
NOTES
and
FINANCIAL STATEMENTS
INSTRUCTOR
ACCT 201 Section ______
GROUP MEMBERS:
Chart of Accounts
Davis Consulting
Chart of Accounts
Assets
100 Cash
110 Accounts Receivable
111 Allowance for Bad Debt
120 Office Supplies
130 Software Inventory
140 Prepaid Rent
150 Equipment
151 Accumulated depreciation -- Equipment
155 Furniture
156 Accumulated Depreciation -- Furniture
Liabilities
200 Accounts Payable
205 Salaries Payable
210 Interest Payable
215 Unearned Revenue
225 Cu
ent Portion of Long-term liability
250 Long-Term Liabilities
Equity
300 Davis, Capital
305 Davis, Withdrawals
310 Common Stock
311 Additional Paid-In Capital--Common Stock
315 Prefe
ed Stock
316 Additional Paid-In Capital--Prefe
ed Stock
320 Retained Earnings
Revenue
400 Service Revenue
405 Sales Revenue
Expenses
500 Cost of Goods Sold
505 Salaries Expense
510 Office Supply Expense
515 Rent Expense
520 Utilities Expense
525 Depreciation Expense--Equipment
530 Depreciation Expense--Furniture
535 Bad Debt Expense
540 Bank Expense
600 Interest Income
700 Interest Expense
800 Income Summary
Journals
DATE ACCOUNTS AND EXPLANATIONS Account Number DEBIT CREDIT
Dec. 2 Cash 100 20,000.00
Davis, Capital 300 20,000.00
To record owner contribution.
2 Rent Expense 515 500.00
Cash 100 500.00
To record payment of rent.
3 Equipment 150 2,700.00
Cash 100 2,700.00
To record purchase of computer (5 year life).
4 Furniture 155 3,900.00
Accounts Payable 200 3,900.00
To record purchase of furniture on credit (5 year life).
5 Office Supplies 120 400.00
Accounts Payable 200 400.00
To record purchase of office supplies on credit.
9 Accounts Receivable 110 1,500.00
Service Revenue 400 1,500.00
To record services rendered on account.
12 Utilities Expense 520 200.00
Cash 100 200.00
To record payment of utilities.
18 Cash 100 1,000.00
Service Revenue 400 1,000.00
To record payment for services provided.
21 Cash 100 1,800.00
Unearned Revenue 215 1,800.00
To record receipt for services paid in advance.
21 No entry needed(Hired admin assis for $2055 monthly to be paid on the 20th every month).
26 Accounts Payable 200 400.00
Cash 100 400.00
To record payment on account.
28 Cash 100 300.00
Accounts Receivable 110 300.00
To record collection on account.
30 Davis, Withdrawals 305 1,500.00
Cash 100 1,500.00
To record David's withdrawal of cash.
Adjusting Entries
Dec. 31 Accounts Receivable 110 600.00
Service Revenue 400 600.00
To accrue service revenue.
Dec. 31 Unearned Revenue 215 600.00
Service Revenue 400 600.00
To record service revenue earned that was collected in advance.
Dec. 31 Office Supply Expense 510 200.00
Office Supplies 120 200.00
To record supplies used XXXXXXXXXXremaining)
Dec. 31 Depreciation Expense— Equipment 525 45.00
Depreciation Expense—Furniture 530 65.00
Accumulated Depreciation—Equipment 151 45.00
Accumulated Depreciation—Furniture 156 65.00
To record depreciation on equipment and furniture.
Dec. 31 Salaries Expense 505 872.31
Salaries Payable 205 872.31
To accrue salaries expense.
Closing Entries
Dec. 31 Service Revenue 400 3,700.00
Income Summary N/A 3,700.00
To close revenue.
31 Income Summary N/A 1,882.31
Salaries Expense 505 872.31
Office Supply Expense 510 200.00
Rent Expense 515 500.00
Utilities Expense 520 200.00
Dep. Expense—Equipment 525 45.00
Dep. Expense—Furniture 530 65.00
To close expenses.
31 Income Summary N/A 1,817.69
Davis, Capital 300 1,817.69
To close income summary
31 Davis, Capital 300 1,500.00
Davis, Withdrawals 305 1,500.00
To close withdrawals.
Jan. 2 Cash 100 7,800.00
Service Revenue 400 7,800.00
To record consulting engagement
Prepaid Rent 140 2,375.00
XXXXXXXXXXCash 100 2,375.00
To record prepayment of 5 months rent
Jan. 5 Office Supplies 120 300.00
Accounts Payable 200 300.00
To record purchase of office supplices on account.
Jan. 7 Software Inventory ($1,680 + $80) 130 1,760.00
Accounts Payable 200 1,760.00
Purchases 80 units of software inventory
Jan. 18 Accounts Receivable 110 2,000.00
Sales Revenue 405 2,000.00
To record sale of software inventory
Cost of Goods Sold 500 880.00
Software Inventory 130 880.00
To record cost of software inventory sold
Jan. 19 Accounts Receivable 110 1,000.00
Service Revenue 400 1,000.00
To record consulting fee.
Jan. 20 Salaries Payable 205 872.31
Salaries Expense 505 1,227.69
Cash 100 2,100.00
To record payment of salaries.
Jan. 21 Software Inventory 130 6,240.00
Accounts Payable 200 6,240.00
To record purchase of software inventory.
Jan. 22 Accounts Payable 200 1,760.00
XXXXXXXXXXCash 100 1,760.00
To record payment on account.
Jan. 24 Utilities Expense 520 200.00
Cash 100 200.00
To record payment of utilities.
Jan. 26 Accounts Payable 200 3,900.00
XXXXXXXXXXCash 100 3,900.00
To record payment on account.
Jan. 28 Cash 100 6,000.00
Sales Revenue 405 6,000.00
To record sale of software inventory.
Cost of Goods Sold 500 3,120.00
Software Inventory 130 3,120.00
To record cost for sale of software inventory.
Cash 100 1,500.00
Accounts Receivable 110 1,500.00
To record collection on account.
Bank Reconcilliation Entries
Jan. 31 Cash 100 400.00
Accounts Receivable 110 400.00
To record EFT collection from Hip Hop Hats.
Cash 100 22.00
Interest Income 600 22.00
To record interest revenue on bank statement.
Office Supply Expense 510 9.00
Cash 100 9.00
To record EFT payment ot Paper Products.
Utilities Expense 520 85.00
Cash 100 85.00
To record EFT payment to The Cable Co.
Bank Expense 540 15.00
Cash 100 15.00
To record bank service charges incu
ed.
Adjusting Entries
Jan. 31 Salaries Expense 505 678.72
Salaries Payable 205 678.72
To accrue salary expense.
Jan. 31 Office Supplies Expense 510 350.00
Office Supplies 120 350.00
To record used office supplies
Jan. 31 Depreciation Expense—Equipment 525 45.00
Depreciation Expense—Furniture 530 65.00
Accumulated Depr.—Equipment 151 45.00
Accumulated Depr.—Furniture 156 65.00
To record depreciation expense.
Jan. 31 Rent Expense 515 475.00
Prepaid Rent 140 475.00
To record one month rent expired.
Jan. 31 Cost of Goods Sold 500 390.00
Software Inventory 130 390.00
To adjust for inventory shrinkage.
Closing Entries
Jan. 31 Service Revenue 400 8,800.00
Sales Revenue 405 8,000.00
Interest Income 600 22.00
Income Summary 800 16,822.00
To move revenue to income summary
Jan. 31 Income Summary 800 7,540.41
Cost of Goods Sold 500 4,390.00
Rent Expense 515 475.00
Utilities Expense 520 285.00
Office Supply Expense 510 359.00
Salaries Expense 505 1,906.41
Depr. Expense—Equipment 525 45.00
Depr. Expense—Furniture 530 65.00
Bank Expense 540 15.00
To move expenses to income summary
Jan. 31 Income Summary 800 9,281.59
XXXXXXXXXXDavis, Capital 300 9,281.59
To close income summary to capital
&"Arial,Bold"&12JOURNAL ENTRY &"Arial,Bold"&12PAGE NO.: J &P
GL
POSTING TO GENERAL LEDGER IS OPTIONAL FOR PHASE 3 (5 POINTS EXTRA CREDIT IF YOU DO)
ACCOUNT NAME: CASH ACCOUNT NUNBER: 100
Date Item Post Ref. Debit Credit Balance
Debit Credit
2-Dec J 1 20,000.00 20,000.00
2-Dec J 1 500.00 19,500.00
3-Dec J 1 2,700.00 16,800.00
12-Dec J 1 200.00 16,600.00
18-Dec J 1 1,000.00 17,600.00
21-Dec J 1 1,800.00 19,400.00
26-Dec J 2 400.00 19,000.00
28-Dec J 2 300.00 19,300.00
30-Dec J 2 1,500.00 17,800.00
2-Jan J 3 7,800.00 25,600.00
Ck # 206 J 3 2,375.00 23,225.00
20-Jan Ck # 207 J 4 2,100.00 21,125.00
21-Jan Ck # 208 J 4 1,760.00 19,365.00
24-Jan Ck # 209 J 4 200.00 19,165.00
26-Jan Ck # 210 J4 3,900.00 15,265.00
28-Jan J 4 6,000.00 21,265.00
J4 1,500.00 22,765.00
31-Jan J 4 400.00 23,165.00
J 4 22.00 23,187.00
J 5 9.00 23,178.00
J 5 85.00 23,093.00
J 5 15.00 23,078.00
ACCOUNT NAME: ACCOUNTS RECEIVABLE ACCOUNT NUNBER: 110
Date Item Post Ref. Debit Credit Balance
Debit Credit
9-Dec J 1 1,500.00 1,500.00
28-Dec J 2 300.00 1,200.00
31-Dec J 2 600.00 1,800.00
18-Jan J 3 2,000.00 3,800.00
19-Jan J 4 1,000.00 4,800.00
28-Jan J4 1,500.00 3,300.00
31-Jan J 4 400.00 2,900.00
ACCOUNT NAME: Allowance for Bad Debt ACCOUNT NUNBER: 111
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: OFFICE SUPPLIES ACCOUNT NUNBER: 120
Date Item Post Ref. Debit Credit Balance
Debit Credit
5-Dec J 1 400.00 400.00
31-Dec J 2 200.00 200.00
5-Jan J3 300.00 500.00
31-Jan 350.00 150.00
ACCOUNT NAME: Software Inventory ACCOUNT NUNBER: 130
Date Item Post Ref. Debit Credit Balance
Debit Credit
7-Jan J 3 1,760.00 1,760.00
18-Jan J 3 880.00 880.00
22-Jan J 4 6,240.00 7,120.00
28-Jan J 4 3,120.00 4,000.00
31-Jan J 5 390.00 3,610.00
ACCOUNT NAME: Prepaid Rent ACCOUNT NUNBER: 140
Date Item Post Ref. Debit Credit Balance
Debit Credit
2-Jan J 3 2,375.00 2,375.00
31-Jan J 5 475.00 1,900.00
ACCOUNT NAME: Equipment ACCOUNT NUNBER: 150
Date Item Post Ref. Debit Credit Balance
Debit Credit
3-Dec J 1 2,700.00 2,700.00
ACCOUNT NAME: Accum Depr -- Equip ACCOUNT NUNBER: 151
Date Item Post Ref. Debit Credit Balance
Debit Credit
31-Dec J 2 45.00 45.00
31-Jan J 5 45.00 90.00
ACCOUNT NAME: Furniture ACCOUNT NUNBER: 155
Date Item Post Ref. Debit Credit Balance
Debit Credit
4-Dec J 1 3,900.00 3,900.00
ACCOUNT NAME: Assum Depr--Furniture ACCOUNT NUNBER: 156
Date Item Post Ref. Debit Credit Balance
Debit Credit
31-Dec J 2 65.00 65.00
31-Jan J 5 65.00 130.00
ACCOUNT NAME: Accounts Payable ACCOUNT NUNBER: 200
Date Item Post Ref. Debit Credit Balance
Debit Credit
4-Dec J 1 3,900.00 3,900.00
5-Dec J 1 400.00 4,300.00
26-Dec J 2 400.00 3,900.00
5-Jan J3 300.00 4,200.00
7-Jan J 3 1,760.00 5,960.00
21-Jan J 4 6,240.00 12,200.00
22-Jan J 4 1,760.00 10,440.00
26-Jan J4 3,900.00 6,540.00
ACCOUNT NAME: Salaries Payable ACCOUNT NUNBER: 205
Date Item Post Ref. Debit Credit Balance
Debit Credit
31-Dec J 2 872.31 872.31
20-Jan J 4 872.31 0
31-Jan J 5 678.72 678.72
ACCOUNT NAME: Interest Payable ACCOUNT NUNBER: 210
Date Item Post Ref. Debit Credit Balance
Debit Credit
Administrator: Administrator:
ACCOUNT NAME: Unearned Revenue ACCOUNT NUNBER: 215
Date Item Post Ref. Debit Credit Balance
Debit Credit
21-Dec J 1 1,800.00 1,800.00
31-Dec J 2 600.00 1,200.00
ACCOUNT NAME: Cu
ent Portion-LTL ACCOUNT NUNBER: 225
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Long-Term Liabilities ACCOUNT NUNBER: 250
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Davis, Capital ACCOUNT NUNBER: 300
Date Item Post Ref. Debit Credit Balance
Debit Credit
2-Dec J 1 20,000.00 20,000.00
31-Dec J 3 1,817.69 21,817.69
J 3 1,500.00 20,317.69
31-Jan J 6 9,281.59 29,599.28
ACCOUNT NAME: Davis, Withdrawals ACCOUNT NUNBER: 305
Date Item Post Ref. Debit Credit Balance
Debit Credit
30-Dec J 2 1,500.00 1,500.00
31-Dec J 3 1,500.00 0.00
ACCOUNT NAME: Common Stock ACCOUNT NUNBER: 310
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Add Pd-In Capital-CS ACCOUNT NUNBER: 311
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Prefe
ed Stock ACCOUNT NUNBER: 315
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Add Pd-In Capital-PS ACCOUNT NUNBER: 316
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Retained Earnings ACCOUNT NUNBER: 320
Date Item Post Ref. Debit Credit Balance
Debit Credit
ACCOUNT NAME: Service Revenue ACCOUNT NUNBER: 400
Date Item Post Ref. Debit Credit Balance
Debit Credit
9-Dec J 1 1,500.00 1,500.00
18-Dec J 1 1,000.00 2,500.00
31-Dec J 2 600.00 3,100.00
J 2 600.00 3,700.00
J 3 3,700.00 0.00
2-Jan J 3 7,800.00 7,800.00
19-Jan J 4 1,000.00 8,800.00
31-Jan J 6 8,800.00 0.00
ACCOUNT NAME: Sales Revenue ACCOUNT NUNBER: 405
Date Item Post Ref. Debit Credit Balance
Debit Credit
18-Jan J 3 2,000.00 2,000.00
28-Jan J 4 6,000.00 8,000.00
31-Jan J 6 8,000.00 0.00
ACCOUNT NAME: Cost of Goods Sold ACCOUNT NUNBER: 500
Date Item Post Ref. Debit Credit Balance
Debit Credit
18-Jan J 3 880.00 880.00
28-Jan J 4 3,120.00 4,000.00
31-Jan J 5 390.00 4,390.00
J 6 4,390.00 0.00
ACCOUNT NAME: Salaries Expense ACCOUNT NUNBER: 505
Date Item Post Ref. Debit Credit Balance
Debit Credit
31-Dec J 2 872.31 872.31
J 3 872.31 0.00
20-Jan J 4 1,227.69 1,227.69
31-Jan J 5 678.72 1,906.41
J 6 1,906.41 0.00
ACCOUNT NAME: Office Suply Expense ACCOUNT NUNBER: 510
Date Item Post Ref. Debit Credit Balance
Debit Credit
31-Dec J 2 200.00 200.00
J 3 200.00 0.00
31-Jan J 5 9.00 9.00
J5 350.00 359.00
J6 359.00 0.00
ACCOUNT NAME: Rent Expense ACCOUNT NUNBER: 515
Date Item Post Ref. Debit Credit Balance
Debit Credit
2-Dec J 1 500.00 500.00
J 3 500.00 0.00
31-Jan J 5 475.00 475.00
J 6 475.00 0.00
ACCOUNT NAME: Utilities Expense ACCOUNT NUNBER: 520
Date Item Post Ref. Debit Credit Balance
Debit Credit
12-Dec J 1 200.00 200.00
J 3 200.00 0.00
24-Jan J 4 200.00 200.00
31-Jan J 5 85.00 285.00
J 6 285.00 0.00
ACCOUNT NAME: Depr Exp - Equipment ACCOUNT NUNBER: 525
Date Item Post Ref. Debit Credit Balance
Debit Credit
31-Dec J 2 45.00 45.00