For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op- erate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. 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, $4,500. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. 5. Purchased additional office equipment on account from Office Necessities Co., $5,100. 6. Received cash from clients on account, $12,750. 10. Paid cash for a newspaper advertisement, $500. 12. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. 12. Provided services on account for the period July 1-12, $14,200. 14. Paid receptionist for two weeks' salary, $1,500. Record the following transactions on Page 2 of the journal: 17. Received cash from cash clients for fees earned during the period July 1-17, $10,400. 18. Paid cash for supplies, $1,000. 20. Provided services on account for the period July 13–20, $9,000. 24. Received cash from cash clients for fees earned for the period July 17-24, $8,500. 26. Received cash from clients on account, $12,000. 27. Paid receptionist for two weeks' salary, $1,500. 29. Paid telephone bill for July, $325. 31. Paid electricity bill for July, $675. 31. Received cash from cash clients for fees earned for the period July 25-31, $7,100. 31. Provided services on account for the remainder of July, $5,500. 31. Jolene withdrew $20,000 for personal use. (Continued) 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.) Jolene Upton, Capital Jolene Upton, Drawing 11 Cash 31 12 Accounts Receivable 32 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation-Office Equipment 54 Depreciation Expense 21 Accounts Payable 22 Salaries Payable 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 55 Insurance Expense 59 Miscellaneous Expense 23 Unearned Fees 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during July is $375. b. Supplies on hand on July 31 are $2,850. c. Depreciation of office equipment for July is $400. d. Accrued receptionist salary on July 31 is $140o. e. Rent expired during July is $2,000. f. Unearned fees on July 31 are $3,000. 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.
For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op- erate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. 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, $4,500. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. 5. Purchased additional office equipment on account from Office Necessities Co., $5,100. 6. Received cash from clients on account, $12,750. 10. Paid cash for a newspaper advertisement, $500. 12. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. 12. Provided services on account for the period July 1-12, $14,200. 14. Paid receptionist for two weeks' salary, $1,500. Record the following transactions on Page 2 of the journal: 17. Received cash from cash clients for fees earned during the period July 1-17, $10,400. 18. Paid cash for supplies, $1,000. 20. Provided services on account for the period July 13–20, $9,000. 24. Received cash from cash clients for fees earned for the period July 17-24, $8,500. 26. Received cash from clients on account, $12,000. 27. Paid receptionist for two weeks' salary, $1,500. 29. Paid telephone bill for July, $325. 31. Paid electricity bill for July, $675. 31. Received cash from cash clients for fees earned for the period July 25-31, $7,100. 31. Provided services on account for the remainder of July, $5,500. 31. Jolene withdrew $20,000 for personal use. (Continued) 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.) Jolene Upton, Capital Jolene Upton, Drawing 11 Cash 31 12 Accounts Receivable 32 14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation-Office Equipment 54 Depreciation Expense 21 Accounts Payable 22 Salaries Payable 41 Fees Earned 51 Salary Expense 52 Rent Expense 53 Supplies Expense 55 Insurance Expense 59 Miscellaneous Expense 23 Unearned Fees 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during July is $375. b. Supplies on hand on July 31 are $2,850. c. Depreciation of office equipment for July is $400. d. Accrued receptionist salary on July 31 is $140o. e. Rent expired during July is $2,000. f. Unearned fees on July 31 are $3,000. 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.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 33P
Related questions
Question
![For the past several years, Jolene Upton has operated a part-time consulting business
from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op-
erate the business, which was to be known as Gourmet Consulting, on a full-time basis.
Gourmet Consulting entered into the following transactions during July:
July 1. The following assets were received from Jolene Upton: cash, $19,000;
accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900.
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, $4,500.
4. Received cash from clients as an advance payment for services to be provided
and recorded it as unearned fees, $8,000.
5. Purchased additional office equipment on account from Office Necessities Co., $5,100.
6. Received cash from clients on account, $12,750.
10. Paid cash for a newspaper advertisement, $500.
12. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
12. Provided services on account for the period July 1-12, $14,200.
14. Paid receptionist for two weeks' salary, $1,500.
Record the following transactions on Page 2 of the journal:
17. Received cash from cash clients for fees earned during the period
July 1-17, $10,400.
18. Paid cash for supplies, $1,000.
20. Provided services on account for the period July 13–20, $9,000.
24. Received cash from cash clients for fees earned for the period July 17-24, $8,500.
26. Received cash from clients on account, $12,000.
27. Paid receptionist for two weeks' salary, $1,500.
29. Paid telephone bill for July, $325.
31. Paid electricity bill for July, $675.
31. Received cash from cash clients for fees earned for the period July 25-31, $7,100.
31. Provided services on account for the remainder of July, $5,500.
31. Jolene withdrew $20,000 for personal use.
(Continued)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49bd761e-af20-498d-b7d5-ceb45bcdb129%2Fb7c6b97d-08ca-4514-854d-e776af07c602%2Fmn81vvg.jpeg&w=3840&q=75)
Transcribed Image Text:For the past several years, Jolene Upton has operated a part-time consulting business
from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to op-
erate the business, which was to be known as Gourmet Consulting, on a full-time basis.
Gourmet Consulting entered into the following transactions during July:
July 1. The following assets were received from Jolene Upton: cash, $19,000;
accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900.
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, $4,500.
4. Received cash from clients as an advance payment for services to be provided
and recorded it as unearned fees, $8,000.
5. Purchased additional office equipment on account from Office Necessities Co., $5,100.
6. Received cash from clients on account, $12,750.
10. Paid cash for a newspaper advertisement, $500.
12. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000.
12. Provided services on account for the period July 1-12, $14,200.
14. Paid receptionist for two weeks' salary, $1,500.
Record the following transactions on Page 2 of the journal:
17. Received cash from cash clients for fees earned during the period
July 1-17, $10,400.
18. Paid cash for supplies, $1,000.
20. Provided services on account for the period July 13–20, $9,000.
24. Received cash from cash clients for fees earned for the period July 17-24, $8,500.
26. Received cash from clients on account, $12,000.
27. Paid receptionist for two weeks' salary, $1,500.
29. Paid telephone bill for July, $325.
31. Paid electricity bill for July, $675.
31. Received cash from cash clients for fees earned for the period July 25-31, $7,100.
31. Provided services on account for the remainder of July, $5,500.
31. Jolene withdrew $20,000 for personal use.
(Continued)
![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.)
Jolene Upton, Capital
Jolene Upton, Drawing
11 Cash
31
12 Accounts Receivable
32
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation-Office Equipment 54 Depreciation Expense
21 Accounts Payable
22 Salaries Payable
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
55 Insurance Expense
59 Miscellaneous Expense
23 Unearned Fees
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use
these data to complete parts (5) and (6).
a. Insurance expired during July is $375.
b. Supplies on hand on July 31 are $2,850.
c. Depreciation of office equipment for July is $400.
d. Accrued receptionist salary on July 31 is $140o.
e. Rent expired during July is $2,000.
f. Unearned fees on July 31 are $3,000.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49bd761e-af20-498d-b7d5-ceb45bcdb129%2Fb7c6b97d-08ca-4514-854d-e776af07c602%2F2yvandx.jpeg&w=3840&q=75)
Transcribed Image Text: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.)
Jolene Upton, Capital
Jolene Upton, Drawing
11 Cash
31
12 Accounts Receivable
32
14 Supplies
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation-Office Equipment 54 Depreciation Expense
21 Accounts Payable
22 Salaries Payable
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
55 Insurance Expense
59 Miscellaneous Expense
23 Unearned Fees
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use
these data to complete parts (5) and (6).
a. Insurance expired during July is $375.
b. Supplies on hand on July 31 are $2,850.
c. Depreciation of office equipment for July is $400.
d. Accrued receptionist salary on July 31 is $140o.
e. Rent expired during July is $2,000.
f. Unearned fees on July 31 are $3,000.
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.
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