ACCT 1110 Accounting Cycle Review Problem

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Complete the Accounting Cycle Review Problem found below and on the next page, onthe attached accounting cvcle work pagers. Please do them by hand (legibly). lf lcannotread your writing, I cannot grade the assignment.

Please be sure and put your name on the assignment prior to turning it in.

Good luck!

Requirements1. Record the transactions in thejournal using the chart of accounts provided on the next page.

Journal entries should be complete and in proper format.2. Post the transactions to the ledger (the T-accounts).3. Prepare an unadjusted trial balance as of December gI, 2OL6.4. Journalize the adjusting entries using the adjustment data given and also by reviewing the journal

entries prepared in Requirement l and the unadjusted trial balance prepared in Requirement 3.' Post adjusting entries to the ledger.5. Prepare an adjusted trial balance as of December 31, 2016.6, Prepare the income statement and the statement of owner's equity for the month ended

December 31, 2016 and the classified balance sheet on that date.7. Journalize the closing entries and post them to the ledger.8. Prepare a post-closing trial balance as of December 3I, 2016.

:

Milton Delivery Service

TransactionsDate Transaction

1-Dec Milton Delivery service began operations by receiving $9,000 cash and a truck with a

fair value of 516,000 from Ripley Milton. The business gave Milton capital inexchange for this contribution.Paid S1,ZOO cash for a twelve-month insurance policy. The policy begins December 1.

Paid 5450 cash for office supplies.

Performed delivery services for a customer and received St,S00 cash.

Completed a large delivery job, billed the customer, 53,100, and received a promise tocollect the 53,100 within one week.Paid employee salary, S1,500-Received

56,000 cash for performing delivery services.

Collected 52,200 in advance for delivery service to be performed later.

Collected 53,100 cash from a customer on account.

Purchased fuel for the truck on account S150.

Performed delivery services on account, 5L,400.

aid office rent, SL,900, for the month of December.

Paid SfSO on account.

Milton withdrew cash of 52,200.

1-Dec

4-Dec

L2-Dec

L5-Dec

L8-Dec

20-Dec

22-Dec

25-Dec

27 -Dec

28-Dec

29-Dec

30-Dec

31-Dec

Adjustment Data

a. Accrued salary expense, $1,500.b. Depreciation is recorded usingthe straight-line method. Assume useful lifeof 5years and $0

salvage value.c. Prepaid insurance for the month has expired.d. Office supplies on hand, 5200.e. Unearned revenue earned during the month, 51,000.f. Accrued Service Revenue, S1,150.

Chart of Accounts

Cash Salaries Payable

Accounts Receivable Unearned Revenue

Office Supplies Milton, Capital

Prepaid lnsurance Milton, WithdrawalsTruck lncome SummaryAccumulated Depreciation - Truck Service Revenue

Accounts Payable Salaries Expense

Depreciation Expense - Truck

lnsurance Expense

Fuel Expense

Rent Expense

Supplies Expense

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GENERAL JOURNAL

Record Trunsactions,Adjusting and Closing Entries in this iournal

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