For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2014, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April: Apr. 1. The following assets were received from Jeff Horton in exchange for capital stock: cash, $20,000; accounts receivable,$14,700; supplies, $3,300; and office equipment,$12,000. There were no liabilities received.

1. Paid three months’ rent on a lease rental contract, $6,000.
2. Paid the premiums on property and casualty insurance policies,$4,200.
3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.
4. Purchased additional office equipment on account from Smith Office Supply Co.,$8,000.
5. Received cash from clients on account, $11,700.
6. Paid cash for a newspaper advertisement,$350.
7. Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.
8. Recorded services provided on account for the period April 1–12,$21,900.
9. Paid receptionist for two weeks’ salary, $1,650. Record the following transactions on Page 2 of the journal.
10. Recorded cash from cash clients for fees earned during the period April 1–16,$6,600.
11. Paid cash for supplies, $725.
12. Recorded services provided on account for the period April 13–20,$16,800.
13. Recorded cash from cash clients for fees earned for the period April 17–24, $4,450.
14. Received cash from clients on account,$26,500.
15. Paid receptionist for two weeks’ salary, $1,650.
16. Paid telephone bill for April,$540.
17. Paid electricity bill for April, $760.
18. Recorded cash from cash clients for fees earned for the period April 25–30,$5,160.
19. Recorded services provided on account for the remainder of April, $2,590.
20. Paid dividends of$18,000.

Instructions

1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

$$\begin{array}{llll} 11 & \text { Cash } & 31 & \text { Capital Stock } \\ 12 & \text { Accounts Receivable } & 32 & \text { Retained Earnings } \\ 14 & \text { Supplies } & 33 & \text { Dividends } \\ 15 & \text { Prepaid Rent } & 41 \text { Fees Earned } \\ 16 & \text { Prepaid Insurance } & 51 \text { Salary Expense } \\ 18 & \text { Office Equipment } & 52 & \text { Supplies Expense } \\ 19 & \text { Accumulated Depreciation } & 53 & \text { Rent Expense } \\ 21 & \text { Accounts Payable } & 54 & \text { Depreciation Expense } \\ 22 & \text { Salaries Payable } & 55 & \text { Insurance Expense } \\ 23 & \text { Unearned Fees } & 59 \quad \text { Miscellaneous Expense } \end{array}$$

2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during April is $350. b. Supplies on hand on April 30 are$1,225. c. Depreciation of office equipment for April is $400. d. Accrued receptionist salary on April 30 is$275. e. Rent expired during April is $2,000. f. Unearned fees on April 30 are$2,350.
5. (Optional.) Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.

The general ledger for Show biz Video shows the following at December 31:

$$\begin{array}{llll} \mathbf{\text{General Ledger }} & \text{ } & \text{ } & \text{ }\\ \text{101 Cash in Bank} & \text{$12,000$} & \text{207 Accts. Pay. -} & \text{ }\\ \text{105 Accts. Rec. - G. Cohen} & \text{$3,000$} & \text{New Media Suppliers} & \text{$3,000$}\\ \text{110 Accts. Rec. - J. Coletti} & \text{900} & \text{209 Accts. Pay. - Palace Films} & \text{$14,000$}\\ \text{113 Accts. Rec. - Flannery} & \text{$1,800$} & \text{301 Greg Failla, Capital} & \text{$33,775$}\\ \text{115 Accts. Rec. - Spring} & \text{ } & \text{305 Greg Failla, Withdrawals} & \text{$4,000$}\\ \text{Branch School District} & \text{$1,500$} & \text{310 Income Summary} & \text{\_\_\_}\\ \text{130 Office Equipment} & \text{$5,000$} & \text{401 Video Rental Revenue} & \text{$9,600$}\\ \text{135 Office Furniture} & \text{$8,000$} & \text{405 VCR Rental Revenue} & \text{$3,500$}\\ \text{140 Computer Equipment} & \text{$10,000$} & \text{501 Advertising Expense} & \text{$1,600$}\\ \text{145 Video Tapes} & \text{$20,000$} & \text{505 Equipment Repair} & \text{ }\\ \text{150 Video Equipment} & \text{$9,000$} & \text{Expense} & \text{$1,200$}\\ \text{201 Accts. Pay. - Broad Street} & \text{ } & \text{510 Maintenance Expense} & \text{400}\\ \text{Office Supply} & \text{400} & \text{520 Rent Expense} & \text{$1,000$}\\ \text{205 Accts. Pay.} & \text{ } & \text{530 Utilities Expense} & \text{375}\\ \text{Computer Horizons} & \text{15,500} & \text{ } & \text{ }\\ \end{array}$$

Using the preceding account names and balances: 1. Prepare the six-column work sheet. The period covered is one month. 2. Prepare the financial statements. Greg Failla invested $10,000 during the month. 3. Record the closing entries on page 12 of the general journal. 4. Post the closing entries. 5. Prepare a post-closing trial balance.

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2019, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April:

Apr. 1. The following assets were received from Jeff Horton: cash, $20,000; accounts receivable,$14,700; supplies, $3,300; and office equipment,$12,000. There were no liabilities received.

1. Paid three months' rent on a lease rental contract, $6,000.
2. Paid the premiums on property and casualty insurance policies,$4,200.
3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.
4. Purchased additional office equipment on account from Smith Office Supply Co.,$8,000.
5. Received cash from clients on account, $11,700.
6. Paid cash for a newspaper advertisement,$350.
7. Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.
8. Provided services on account for the period April 1-12,$21,900.
9. Paid receptionist for two weeks' salary, $1,650.

Record the following transactions on Page 2 of the journal: 17. Received cash from cash clients for fees earned during the period April 1-16,$6,600. 18. Paid cash for supplies, $725. 20. Provided services on account for the period April 13-20,$16,800. 24. Received cash from cash clients for fees earned for the period April 17-24, $4,450. 26. Received cash from clients on account,$26,500. 27. Paid receptionist for two weeks' salary, $1,650. 29. Paid telephone bill for Aprill,$540. 30. Paid electricity bill for April, $760. 30. Received cash from cash clients for fees earned for the period April 25-30,$5,160. 30. Provided services on account for the remainder of April, $2,590. 30. Jeff withdrew$18,000 for personal use.

Instructions

1. Journalize each transaction in a two-column journal starting on Page 1 , referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

2. Post the journal to a ledger of four-column accounts.

3. Prepare an unadjusted trial balance.

4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during April is $350.

b. Supplies on hand on April 30 are$1,225.

c. Depreciation of office equipment for April is $400.

d. Accrued receptionist salary on April 30 is$275.

e. Rent expired during April is $2,000.

f. Uneamed fees on April 30 are$2,350.

5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet.

6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.

7. Prepare an adjusted trial balance.

8. Prepare an income statement, a statement of owner's equity, and a balance sheet.

9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry.

10. Prepare a post-closing trial balance.

Describe one experiment that supports the statement that an rRNA and not a protein component of the ribosome catalyzes the peptidyl transferase reaction.

What factors affect the cost of property insurance?

On August 1, 2014, Rafael Masey established Planet Realty, which completed the following transactions during the month:

a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $17,500. b. Purchased supplies on account,$2,300. c. Earned sales commissions, receiving cash, $13,300. d. Paid rent on office and equipment for the month,$3,000. e. Paid creditor on account, $1,150. f. Paid dividends,$1,800. g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses,$400. h. Paid office salaries, $2,800. i. Determined that the cost of supplies used was$1,050.

Instructions

1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Capital Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted.
2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance.
3. Prepare an unadjusted trial balance as of August 31, 2014.
4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August.
5. Determine the increase or decrease in retained earnings for August

Which of the following is not a common exclusion in a property and casualty policy? (a) loss due to depreciation (b) loss due to pollution (c) loss due to war (d) All of the above are common exclusions.

What type of insurance protects you from losses when you injure other people or damage other people’s property? a. property insurance b. liability insurance c. personal insurance d. universal insurance

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Instructions

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost on June 30.
5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30, 2014, are as follows:

$$\begin{array}{rrcccr} \textbf { Date } & \textbf { Transaction } & \begin{array}{c} \textbf { Number } \\ \textbf { of Units } \end{array} & \begin{array}{c} \textbf { Per } \\ \textbf { Unit } \end{array} & \textbf { Total } \\ \hline \text { Apr. } 3 & \text { Inventory } & 25 & \$ 1,200 & \$ 30,000 \\ 8 & \text { Purchase } & 75 & 1,240 & 93,000 \\ 11 & \text { Sale } & 40 & 2,000 & 80,000 \\ 30 & \text { Sale } & 30 & 2,000 & 60,000 \\ \text { May } 8 & \text { Purchase } & 60 & 1,260 & 75,600 \\ 10 & \text { Sale } & 50 & 2,000 & 100,000 \\ 19 & \text { Sale } & 20 & 2,000 & 40,000 \\ 28 & \text { Purchase } & 80 & 1,260 & 100,800 \\ \text { June } 5 & \text { Sale } & 40 & 2,250 & 90,000 \\ 16 & \text { Sale } & 25 & 2,250 & 56,250 \\ 21 & \text { Purchase } & 35 & 1,264 & 44,240 \\ 28 & \text { Sale } & 44 & 2,250 & 99,000 \end{array}$$

The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-1B.

Instructions

1. Determine the inventory on June 30, 2014, and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system.
2. Determine the inventory on June 30, 2014, and the cost of goods sold for the three-month period, using the last-in, first-outmethod and the periodic inventory system.
3. Determine the inventory on June 30, 2014, and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the dollar.
4. Compare the gross profit and June 30, 2014, inventories using the following column headings:

$$\begin{array}{lrrr} &\textbf{FIFO}&\textbf{LIFO}&\textbf{Weighted Average}\\\hline \text{Sales}\\ \text{Cost of merchandise sold}\\ \text{Gross profit}\\ \text{Inventory, June 30,2014}\\ \end{array}$$

Journalize for Harper and Co. each of the following transactions or state no entry required and explain why. Be sure to follow proper journal writing rules.

A. A corporation is started with an investment of $50,000 in exchange for stock.
B. Equipment worth$4,800 is ordered.
C. Office supplies worth $750 are purchased on account.
D. A part-time worker is hired. The employee will work 15–20 hours per week starting next Monday at a rate of$18 per hour.
E. The equipment is received along with the invoice. Payment is due in three equal monthly installments, with the first payment due in sixty days.

Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended April 30, 2018:

Based on the preceding spreadsheet, prepare an income statement, retained earnings statement, and balance sheet for Triton Consulting.

When a corporation completes a 3-for-1 stock split:

a) The ownership interest of current stockholders is decreased.

b) The market price per share of the stock is decreased.

c) The par value per share is decreased.

d) B and C.

Journalize entries for the following related transactions of Lilly Heating & Air Company: Discovered that $9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit.