KONOHAGAKURE SYSTEMS

CHART OF ACCOUNTS
# Account Title Account No.
1 Cash 101
2 Accounts Receivable 106
3 Computer Supplies 126
4 Prepaid Insurance 128
5 Prepaid Rent 131
6 Office Equipment 163
7 Accumulated Depreciation- Office Equipment 164
8 Computer Equipment 167
9 Accumulated Depreciation- Computer Equipment 168
10 Accounts Payable 201
11 Wages Payable 210
12 Unearned Computer Services Revenue 236
13 Minato, Capital 301
14 Minato, Withdrawal 302
15 Computer Service Revenue 403
16 Depreciation Expense - Office Equipment 612
17 Depreciation Expense - Computer Equipment 613
18 Wages Expense 623
19 Insurance Expense 637
20 Rent Expense 640
21 Computer Supplies Expense 652
22 Advertising Expense 655
23 Mileage Expense 676
25 Miscellaneous Expense 677
25 Repair Expense - Computer 684
26 Income Summary 901
Cash in bank 102
123
AGAKURE SYSTEMS
T OF ACCOUNTS
Account Title
Cash
Accounts Receivable
Computer Supplies
Prepaid Insurance
Prepaid Rent
Office Equipment
Accumulated Depreciation- Office Equipment
Computer Equipment
Accumulated Depreciation- Computer Equipment
Accounts Payable
Wages Payable
Unearned Computer Services Revenue
Minato, Capital
Minato, Withdrawal
Computer Service Revenue
Depreciation Expense - Office Equipment
Depreciation Expense - Computer Equipment
Wages Expense
Insurance Expense
Rent Expense
Computer Supplies Expense
Advertising Expense
Mileage Expense
Miscellaneous Expense
Repair Expense - Computer
Income Summary
Cash in bank
Retained Earnings
 KONOHAGAKURE SYSTEMS JOURNAL

Date Account # Account Title Debit

Oct 1 101 Cash 220,000

167 Computer Equipment 80,000
163 Office Equipment 32,000
301 Minato, Capital
To record initial investment

2 131 Prepaid Rent 13,200

101 Cash
To record prepayment for four month's rent

3 126 Computer Supplies 5,680

201 Accounts Payable
To record purchase of computer supplies on credit

5 128 Prepaid Insurance 8,880

101 Cash
To record payment of insurance

6 106 Accounts Receivable 19,200

403 Computer Service Revenue
To bill client for services performed

8 201 Accounts Payable 5,680

101 Cash
To record payment for computer supplies purchased on account

10 No entry

12 106 Accounts Receivable 5,600

403 Computer Service Revenue
To bill client for services already performed

15 101 Cash 19,200

106 Accounts Receivable
To record receipt of partial payment from Rasengan Leasing

17 684 Repair Expense - Computer 3,220

101 Cash
To record repair expense

20 655 Advertising Expense 7,760

101 Cash
To record payment for an advertising expense
 22 101 Cash 5,600
106 Accounts Receivable
To record receipt of partial payment from Rasengan Leasing

28 106 Accounts Receivable 20,832

403 Computer Service Revenue
To bill client for services already performed

31 623 Wages Expense 3,500

101 Cash
To record payment for wages

302 Minato, Withdrawal 14,400

101 Cash
To record withdrawal for personal use

Nov 1 676 Mileage Expense 1,280

101 Cash
To record reimbursement for business automobile mileage allowance

2 101 Cash 18,532

403 Computer Service Revenue
To record receipt from billings to Naruto Corporation

5 126 Computer Supplies 4,500

101 Cash
To record payment for purchase of computer supplies

8 106 Accounts Receivable 22,672

403 Computer Service Revenue
To bill Boruto Co. for services already performed

13 No entry

18 101 Cash 8,832

106 Accounts Receivable
To record receipt of cash for billings made on October 28

22 677 Miscellaneous Expense 1,000

101 Cash
To record donation as miscellaneous expense

24 106 Accounts Receivable 15,800

403 Computer Service Revenue
To bill client for serives already performed

25 No entry
 28 676 Mileage Expense 1,536
101 Cash
To record reimbursement for business automobile mileage allowance

30 302 Minato, Withdrawal 8,000

101 Cash
To record withdrawal for personal use

623 Wages Expense 7,000

101 Cash
To record payment for salaries of employees

Dec 2 655 Advertising Expense 4,100

101 Cash
To record payment of advertising expense

3 684 Repair Expense - Computer 2,000

101 Cash
To record payment for minor repairs

4 101 Cash 15,800

106 Accounts Receivable
To record receipt from previous billings made to Kakashi's

10 623 Wages Expense 3,000

101 Cash
To record payment for salaries of employees

14 101 Cash 6,000

236 Unearned Computer Services Revenue
To record advances from clients

15 126 Computer Supplies 4,400

201 Accounts Payable
To record purchases made on account

16 No entry

20 101 Cash 22,500

403 Computer Service Revenue
To record receipt of cash for service already performed

28 101 Cash 12,000

106 Accounts Receivable
To record receipt of cash from previous billings to Buruto

29 676 Mileage Expense 768

 101 Cash
To record reimbursement for business automobile mileage allowance

31 302 Minato, Withdrawal 6,000

101 Cash
To record withdrawal for personal use

630,472

ADJUSTING ENTRIES

652 Computer Supplies Expense 12,260

126 Computer Supplies
Adjustment made for supplies left on count

637 Insurance Expense 2,220

128 Prepaid Insurance
Adjustment made for prepaid insurance which has expired

623 Wages Expense 2,000

210 Wages Payable
Adjustment for salaries payable paid

613 Depreciation Expense - Computer Equipment 5,000

168 Accumulated Depreciation- Computer Equipment
Adjustment made for the depreciation of computer equipment

612 Depreciation Expense - Office Equipment 1,600

164 Accumulated Depreciation- Office Equipment
Adjustment made for the depreciation of office equipment

640 Rent Expense 9,900

131 Prepaid Rent
Adjustment made for prepaid rent already expired

32,980

663,452
Credit

332,000

13,200

5,680

8,880

19,200

5,680

5,600

19,200

3,220

7,760
 5,600

20,832

3,500

14,400

1,280
ge allowance

18,532

4,500

22,672

8,832

1,000

15,800
 1,536
ge allowance

8,000

7,000

4,100

2,000

15,800

3,000

6,000

4,400

22,500

12,000
 768
ge allowance

6,000

630,472

12,260

2,220

2,000

5,000

1,600

9,900

32,980

663,452
 Unadjusted
Ledger Balance
Trial Balance
# Account # Account Title Debit Credit Ending Balance Debit
1 101 Cash 328,464 95,824 232,640 232,640
2 106 Accounts Receivable 84,104 61,432 22,672 22,672
3 126 Computer Supplies 14,580 - 14,580 14,580
4 128 Prepaid Insurance 8,880 8,880 8,880
5 131 Prepaid Rent 13,200 - 13,200 13,200
6 163 Office Equipment 32,000 - 32,000 32,000
7 164 Accumulated Depreciation- Office Equipment - - - -
8 167 Computer Equipment 80,000 - 80,000 80,000
9 168 Accumulated Depreciation- Computer Equipment - - - -
10 201 Accounts Payable 5,680 10,080 4,400 -
11 210 Wages Payable - - - -
12 236 Unearned Computer Services Revenue - 6,000 6,000 -
13 301 Minato, Capital - 332,000 332,000 -
14 302 Minato, Withdrawal 28,400 - 28,400 28,400
15 403 Computer Service Revenue - 125,136 125,136 -
16 612 Depreciation Expense - Office Equipment - - - -
17 613 Depreciation Expense - Computer Equipment - - - -
18 623 Wages Expense 13,500 - 13,500 13,500
19 637 Insurance Expense - - - -
20 640 Rent Expense - - - -
21 652 Computer Supplies Expense - - - -
22 655 Advertising Expense 11,860 - 11,860 11,860
23 676 Mileage Expense 3,584 - 3,584 3,584
25 677 Miscellaneous Expense 1,000 - 1,000 1,000
25 684 Repair Expense - Computer 5,220 - 5,220 5,220
26 901 Income Summary - - - -
TOTAL 630,472 630,472 467,536
 Unadjusted Adjusted
Adjustments Income Statement Balance Sheet
Trial Balance Trial Balance
Credit Debit Credit Debit Credit Debit Credit Debit
- - - 232,640 - 101 - - 232,640
- - - 22,672 - 106 - - 22,672
- - 12,260 2,320 - 126 - - 2,320
- - 2,220 6,660 - 128 - - 6,660
- - 9,900 3,300 - 131 - - 3,300
- - - 32,000 - 163 - - 32,000
- - 1,600 - 1,600 164 - - -
- - - 80,000 - 167 - - 80,000
- - 5,000 - 5,000 168 - - -
4,400 - - - 4,400 201 - - -
- - 2,000 - 2,000 210 - - -
6,000 - - - 6,000 236 - - -
332,000 - - - 332,000 301 - - -
- - - 28,400 - 302 - - 28,400
125,136 - - - 125,136 403 - 125,136 -
- 1,600 - 1,600 - 612 1,600 - -
- 5,000 - 5,000 - 613 5,000 - -
- 2,000 - 15,500 - 623 15,500 - -
- 2,220 - 2,220 - 637 2,220 - -
- 9,900 - 9,900 - 640 9,900 - -
- 12,260 - 12,260 - 652 12,260 - -
- - - 11,860 - 655 11,860 - -
- - - 3,584 - 676 3,584 - -
- - - 1,000 - 677 1,000 - -
- - - 5,220 - 684 5,220 - -
- - - - - 901 - - -
467,536 32,980 32,980 476,136 476,136 68,144 125,136 407,992
56,992 - -
125,136 125,136 407,992
Balance Sheet

Credit

1,600
-
5,000
4,400
2,000
6,000
332,000
-
-
-
-
-
-
-
-
-
-
-
-
-
351,000
56,992
407,992
 KONOHAGAKURE SYTEMS
INCOME STATEMENT
FOR THE THREE MONTHS ENDED DECEMBER 31, 2017

ACCOUNT # ACCOUNT TITLE AMOUNT

403 Computer Service Revenue 125,136
LESS:
OPERATING EXPENSES
612 Depreciation Expense - Office Equipment 1,600
613 Depreciation Expense - Computer Equipment 5,000
623 Wages Expense 15,500
637 Insurance Expense 2,220
640 Rent Expense 9,900
652 Computer Supplies Expense 12,260
655 Advertising Expense 11,860
676 Mileage Expense 3,584
677 Miscellaneous Expense 1,000
684 Repair Expense - Computer 5,220
Total 68,144

Net Income 56,992

KONOHAGAKURE SYTEMS
STATEMENT OF CHANGES IN OWNER'S EQUITY
FOR THE THREE MONTHS ENDED DECEMBER 31, 2017

ACCOUNT # ACCOUNT TITLE AMOUNT

OWNER'S CAPITAL

301 Minato, Capital 332,000

Add: Net Income 56,992
302 Less: Minato, Withdrawal 28,400

301 Minato, Capital, Ending 360,592

 KONOHAGAKURE SYSTEMS
STATEMENT OF FINANCIAL POSITION
DECEMBER 31,2017

Account # Account Title Amount

ASSETS
Current Assets
101 Cash 232,640
106 Accounts Receivable 22,672
126 Computer Supplies 2,320
128 Prepaid Insurance 6,660
131 Prepaid Rent 3,300
Total Current Assets 267,592

Noncurrent Assets
163 Office Equipment 32,000
164 Accumulated Depreciation- Office Equipment 1,600
167 Computer Equipment 80,000
168 Accumulated Depreciation- Computer Equipment 5,000
Total Noncurrent Assets 105,400

TOTAL ASSETS 372,992

LIABILITIES

201 Accounts Payable 4,400

210 Wages Payable 2,000
236 Unearned Computer Services Revenue 6,000
TOTAL LIABILITIES 12,400

OWNER'S CAPITAL
301 Minato, Capital 332,000
302 Minato, Withdrawal 28,400
901 Income Summary 56,992

TOTAL OWNER'S CAPITAL 360,592

TOTAL LIABILITIES ANS OWNER'S CAPITAL 372,992

 KONOHAGAKURE SYSTEMS
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31,2017

Cash Flow from Operating Activities

Net Income

Add: Depreciation Expense- Office Equipment

Depreciation Expense- Computer Equipment
Increase in Accounts Payable
Increase in Wages Payable
Increase in Unearned Computer Service Revenue
Less: Increase in Accounts Receivable
Increase in Computer Supplies
Increase in Prepaid Insurance
Increase in Prepaid Rent
Net Cash Outflow Provided by Operating Activities

Cash flow from Investing Activities

Net Cash Flow from Investing Activities

Cash Flow from Financing Activities

Initial Cash Investment
Less: Capital Withdrawals
Net Cash Inflow From Financing Activities

Net Cash Flow

Cash, Beginning Balance
Add: Net Cash Inflow
Cash, Ending Balance
 2017

56,992

1,600
5,000
4,400
2,000
6,000
22,672
2,320
6,660
3,300
(15,952)

220,000
28,400
191,600

232,640
-
232,640
232,640