Unit 2 Assignment: Management Tools Application

For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2013, Dustin
to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Qu
Consulting entered into the following transactions during June:

June 1. The following assets were received from Dustin Larkin: cash,
$10,000; accounts receivable, $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received.
June 1. Paid three months' rent on a lease rental contract, $4,500.
June 2. Paid the premiums on property and casualty insurance policies, $1,800.
June 4. Received cash from clients as an advance payment for services to be provided (Record it as unearned fees), $3,000.
June 5. Purchased additional office equipment on account from Crawford Company, $1,800.
June 6. Received cash from clients on account, $800.
June 10. Paid cash for a newspaper advertisement to run during June, $120.
June 12. Paid Crawford Company for part of the debt incurred on June 5, $800.
June 12. Recorded services provided on account for the period June 1 to June 12, $2,250.
June 14. Paid part-time receptionist for 2 weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).
June 17. Recorded cash from cash clients for fees earned during the period June 1-16, $3,175.
June 18. Paid cash for supplies, $750.
June 20. Recorded services provided on account for the period June 13-20, $1,100.
June 24. Recorded cash from cash clients for fees earned for the period June 17-24, $1,850.
June 26. Received cash from clients on account, $1,600.
June 27. Paid part-time receptionist for two weeks' salary, $400. (Note: Ignore any payroll tax or withholdings).
June 29. Paid telephone bill for June, $130.
June 30. Paid electricity bill for June, $200.
June 30. Recorded cash from cash clients for fees earned for the period June 25-30, $2,050.
June 30. Recorded services provided on account for the remainder of June, $1,000.
June 30. Dustin withdrew $4,500 for personal use.

Instructions-Use the Excel template provided in the class titled “Unit 2 and 3 Management Tools Assignment” to complete the
3 requirements for Unit 2:
1. Journalize each transaction in the two-column journal tab, referring to the following chart of accounts in selecting the accou
debited and credited.

11-Cash
12-Accounts Receivable
14-Supplies
15-Prepaid Rent
16-Prepaid Insurance
18-Office Equipment
19-Accumulated Depreciation
21-Accounts Payable
22-Salaries Payable
23-Unearned Fees
31-Dustin Larkin, Capital
32-Dustin Larkin, Drawing
41-Fees Earned
51-Salary Expense
52-Rent Expense
53-Supplies Expense
54-Depreciation Expense
55-Insurance Expense
59-Miscellaneous Expense

2. Post the journal to a ledger of four-column accounts, see the Excel tab labeled accordingly.
3. Prepare a trial balance as of June 30, 2013 – using the tab in the Excel workbook labeled accordingly.

Notes:
1) Proper Journal Entry Formatting is absolutely mandatory.
a. Debit Account Descriptions are to be fully left-justified in the line.
b. Credit Account Descriptions are to be indented in the cell.
c. A short description is required for every journal entry.
2) You will be required to create at least ONE additional general Ledger Account to accommodate a few Journal Entries.
3) You may need to add the “Miscellaneous Expense" account to the General Ledger.
4) Or, you may create 2 or 3 new G/L accounts. For example "Utilities."
5) Be sure that you use proper formatting when you create the Financial Statements. For example:
a. Add required underlining,
b. "$" signs must be properly formatted.
6) The templates are NOT fully “pre-formatted.” You must re-format them for proper presentation in a number of places.
Requirement # 1
Prepare journal entries to record the June transactions in the General Journal below.

General Journal
Date Description(Account Name) Debit Credit
1-Jun Cash 11 10000
Accounts Receivable 12 1500
Supplies 14 1250
Office equipment 18 7500
Dustin Larkin, Capital 31 20250
Transfer of assets to new company

Prepaid rent 15 4500

Cash 11 4500
Prepaid rent for 3 months

2-Jun Prepaid Insurance 16 1800

Cash 11 1800
Current premium for property and casualty insurance

4-Jun Cash 11 3000

Unearned fees 23 3000
Advance payment for services to be rendored

5-Jun Office equipment 18 1800

Accounts Payable 21 1800
Additional equipment purchased on account

6-Jun Cash 11 800

Accounts Receivable 12 800
Cash payment for services provided on account

10-Jun Miscelaneous expense 59 120

Cash 11 120
Newspaper advertisment

12-Jun Accounts Payable 21 800

Cash 11 800
Payment for office equipment bought on account 5jun

Accounts Receivable 12 2250

Fees earned 41 2250
Fees earned for services provided on account

14-Jun Salaries Expense 51 400

 Cash 11 400
2 week salary expense

17-Jun Cash 11 3175

Fees earned 41 3175
Cash earned from services provided Jun 1 - 16

18-Jun Supplies 14 750

Cash 11 750
Purchase of supplies for cash

20-Jun Accounts Receivable 12 1100

Fees earned 41 1100
Fees earned on account for services provided Jun 13 - 20

24-Jun Cash 11 1850

Fees earned 41 1850
Cash earned for services provided Jun 17 - 24

26-Jun Cash 11 1600

Accounts receivable 12 1600
Cash payment for services provided on account

27-Jun Salaries Expense 22 400

Cash 11 400
2 week salary expense

29-Jun Miscelaneous expense 59 130

Cash 11 130
June telephone expense

30-Jun Miscelaneous expense 59 200

Cash 11 200
June Electricity expense

Cash 11 2050
Fees earned 41 2050
Cash earned for services provided Jun 25 - 30

Accounts Receivable 12 1000

Fees earned 41 1000
Fees earned on account for services provided Jun 20 - 30

Dustin Larkin, Drawing 32 4500

Cash 11 4500
Withdrawal for personal use
52475 52475
This Sheet will be used for Requirements 2, 5 and 9

GENERAL LEDGER

ACCOUNT: CASH ACCOUNT NO. 11

2013 POST. BALANCE

MONTH DAY ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 1 1 10,000.00 10,000.00
1 1 4,500.00 5,500.00
2 1 1,800.00 3,700.00
4 1 3,000.00 6,700.00
6 1 800.00 7,500.00
10 1 120.00 7,380.00
12 1 800.00 6,580.00
14 1 400.00 6,180.00
17 1 3,175.00 9,355.00
18 2 750.00 8,605.00
24 2 1,850.00 10,455.00
26 2 1,600.00 12,055.00
27 2 400.00 11,655.00
29 2 130.00 11,525.00
30 2 200.00 11,325.00
30 2 2,050.00 13,375.00
30 2 4,500.00 8,875.00

ACCOUNT: ACCOUNTS RECEIVABLE ACCOUNT NO. 12

2013 POST. BALANCE

MONTH DAY ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 1 1 1,500.00 1,500.00
6 1 800.00 700.00
12 1 2,250.00 2,950.00
20 2 1,100.00 4,050.00
26 2 1,600.00 2,450.00
30 2 1,000.00 3,450.00
ACCOUNT: SUPPLIES ACCOUNT NO. 14

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 1 1 1,250.00 1,250.00
18 2 750.00 2,000.00

ACCOUNT: PREPAID RENT ACCOUNT NO. 15

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 1 1 4,500.00 4,500.00

ACCOUNT: PREPAID INSURANCE ACCOUNT NO. 16

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 2 1 1,800.00 1,800.00
ACCOUNT: OFFICE EQUIPMENT ACCOUNT NO. 18

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 1 1 7,500.00 7,500.00
5 1 1,800.00 9,300.00

ACCOUNT: ACCUMULATED DEPRECIATION ACCOUNT NO. 19

POST. BALANCE
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT

ACCOUNT: ACCOUNTS PAYABLE ACCOUNT NO. 21

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 5 1 1,800.00 1,800.00
12 1 800.00 1,000.00

ACCOUNT: SALARIES PAYABLE ACCOUNT NO. 22

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
ACCOUNT: UNEARNED FEES ACCOUNT NO. 23

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 4 1 3,000.00 3,000.00

ACCOUNT: DUSTIN LARKIN, CAPITAL ACCOUNT NO. 31

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 1 1 20,250.00 20,250.00

ACCOUNT: DUSTIN LARKIN, DRAWING ACCOUNT NO. 32

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 30 2 4,500.00 4,500.00

ACCOUNT: INCOME SUMMARY ACCOUNT NO. 33

POST. BALANCE
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
ACCOUNT: FEES EARNED ACCOUNT NO. 41

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 12 1 2,250.00 2,250.00
17 1 3,175.00 5,425.00
20 2 1,100.00 6,525.00
24 2 1,850.00 8,375.00
30 2 2,050.00 10,425.00
30 2 1,000.00 11,425.00

ACCOUNT: SALARY EXPENSE ACCOUNT NO. 51

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 14 1 400.00 400.00
27 2 400.00 800.00

ACCOUNT: RENT EXPENSE ACCOUNT NO. 52

POST. BALANCE
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
ACCOUNT: SUPPLIES EXPENSE ACCOUNT NO. 53

POST. BALANCE
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT

ACCOUNT: DEPRECIATION EXPENSE ACCOUNT NO. 54

POST. BALANCE
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT

ACCOUNT: INSURANCE EXPENSE ACCOUNT NO. 55

POST. BALANCE
DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT

ACCOUNT: MISCELLANEOUS EXPENSE ACCOUNT NO. 59

2013 POST. BALANCE

DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT
June 10 1 120.00 120.00
29 2 130.00 250.00
30 2 200.00 450.00
REQUIREMENT #3:

Prepare an Unadjusted Trial Balance for June in the space below.

Quixote Consulting
Unadjusted Trial Balance
June 30, 2013
Debit Credit
Cash 8,875.00
Accounts Receivable 3,450.00
Supplies 2,000.00
Prepaid Rent 4,500.00
Prepaid Insurance 1,800.00
Office Equipment 9,300.00
Accounts Payable 1,000.00
Unearned Fees 3,000.00
Dustin Larkin, Capital 20,250.00
Dustin Larkin, Drawing 4,500.00
Fees Earned 11,425.00
Salary expense 800.00
Miscellaneous Expense 450.00
35,675.00 35,675.00