Cindi Lewis decided to expand her business and began selling accounting software, as well as providing accounting services. During January, 2015, Lewis Accounting Services completed these transactions:
Jan 2 Completed a consulting engagement and received cash of $10,000
2 prepaid three months office rent
7 purchased software inventory on account, $4,400, plus freight in, $100
15 withdrew $800 for personal use.
18 sold software on account, $1,100
19 Consulted with a client for a fee of $900
20. Paid $1200 cash in salaries for the month
21. Paid 1500 for the office furniture bill incurred in December
24. Paid utilities, $400
28 Sold software for cash, $700 (cost $400)
31. Recorded these adjusting entries:
a. Depreciation of computer equipment and office furniture
b. Expiration of prepaid rent
c. Expiration of prepaid insurance ( in Dec 2 of 2014 Lewis paid $8,500 cash for a 2 years renters insurance)
d. Physical count of inventory, $2800
e. Earned remaining revenue from December 22, 2014
Prepare journal entries for the above transactions and post these entries to the ledger.
Prepare adjusting entries on January 31, 2015 and post to the ledger
Prepare an adjusted trial balance, an income statement, a statement of owners equity, and a balance sheet as of January 31, 2015
Prepare closing entries at January 31, 2015 and post to the ledger
Prepare a post-closing trial balance on January 31, 2015
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