Accounting Cycle Project Fall 2014 Student 3

1705 words 7 pages
Business 1A
Accounting Cycle Project Name: ______________________________

On October 1, 2013, Adrian Lopez launched a computer services company, Success Systems, which is organized as a corporation and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2013.

A list of business transactions for the months of October to December:
Oct.
1 Adrian Lopez invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. 2 The company paid $3,300 cash for four months’ rent. (Hint: Debit
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Three months have expired since the 12-month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
Three of the four months’ prepaid rent has expired.

Step 5: Prepare the Adjusted Trial Balance on page 15.

Step 6: Prepare the 3 Financial Statements on December 31 on pages 16 to 17. (Hint: Use a 3 month period for Income Statement and Statement of Retained Earnings; use a date for the Balance Sheet)

Step 7: Journalize the closing journal entries in the General Journal on page 6 and then post to the General Ledger Accounts.

Step 8: Prepare the Post-Closing Trial Balance on page 18.

Step 9: Using the completed financial statements from Step 7, Analyze questions found on page 19.

General Journal J1 Date
Account Titles
REF.
Debit
Credit

General Journal J2 Date
Account Titles
REF.
Debit

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