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AC1220 Accounting I Lab 2.2

A continuation of AC 1220 Accounting I Lab, focusing on advanced accounting practices.

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    AC1220 ACCOUNTING I Lab 2 . 2 1 AC1220 Accounting I Lab 2.2 Using the information provided for Jake's Computer Repair Service in March 20x1, please complete the following tasks: 1. Journalize the transactions that occurred during March 20x1. Ensure that each transaction is recorded correctly, including references an d proper debits and credits. (Word Count: 150 - 200 words) 2. Post the journal entries made on March 31, 20x1 to the appropriate T - accounts. Use the journal entries from Requirement 2 for March 31. (Word Count: 200 - 250 words) 3. Prepare an adjusted trial balance, taking into account the adjusting entries for March 31, 20x1. Provide the final adjusted balances and ensure they align with the income statement and balance sheet. (Word Count: 250 - 300 words) 4. Complete the Income Statement and Statement of Owner's Equity for Jake's Computer Repair Service for the month ended March 31, 20x1. U se the adjusted trial balance from Requirement 3. (Word Count: 150 - 200 words) 5. Prepare the closing entries for the period ending March 31, 20x1. Close all revenue and expense accounts to the Income Summary and tr ansfer the net income to the capital account. (Word Count: 100 - 150 words) 6. Calculate the current ratio for Jake’s Computer Repair Service as of March 31, 20x1. Show all your work, including the formula used. Br iefly interpret the result. (Word Count: 150 - 200 words) Total Word Count Requirement: 1,100 - 1,400 words

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    AC1220 ACCOUNTING I Lab 2 . 2 2 AC1220 Lab 2.2 Introduction Jake’s Computer Repair Service was profitable in February 20x1 and continued to operate in March 20x1. The ending balances fo r assets, liabilities, and the capital account of Jake’s Computer Repair Service on February 28, 20x1 are listed here. These account balances are also the b eginning balances for March 20x1. Account Balance Debit Credit Cash $7,760 Accounts Receivable $1,630 Supplies $260 Prepaid Advertising $1,000 Equipment $6,200 Accounts Payable $490 Wages Payable $30 Interest Payable $120 Note Payable $10,000 Unearned Revenue $120 Capital, Jones $6,090 Total $16,850 $16,850

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    AC1220 ACCOUNTING I Lab 2 . 2 3 The following transactions occurred during March 20x1: a. March 1, 20x1. Purchased supplies (on account): $640 b. March 4, 20x1. Service revenues for the first week of March: $1,420 (cash) c. March 18, 20x1. Received cash from customers on accounts receivable: $1,600 d. March 25, 20x1. Paid interest expense on note payable: $120 e. March 31, 20x1. Service revenues for the rest of March: $5,680 ($5,000 cash, $680 on account) f. March 31, 20x1. Paid rent: $500 g. March 31, 20x1. The cash payment for wages totaled $1,100. The journal entry includes debit to the wages payable account. h. March 31, 20x1. Jake withdrew $2,000 in cash from the business for personal use. Requirement 1 Journali ze the transactions occurring during March , 20x1. The first transaction has been journalized and poste d to the related ledger account . DATE REF DEBIT CREDIT 3/1/11 Supplies $640 Accounts Payable a $640 To record purchase of supplies a 3/4/x1 Cash b 1420 Revenue b 1420 To record revenues 3/18/x1 Cash c 1600 Accounts receivables c 1600 To record cash receipts from debtors 3/25/x1 Interest expense d 120 Cash d 120 To record interest expense paid

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