ACC100- Gillian Shaw opened Shaw’s Carpet Cleaners Inc. , a sole proprietorship on January

ACC100- Principles
of Accounting
All parts (a-h) must be completed
before the work will be accepted.
The work for all instructions must be
fastened in a binder, neatly presented and labeled. A copy of the requirements must be included
with the work papers following. Each part (a-h) must be clearly labeled. All
work must be complete and legible.
Assignment :
Gillian Shaw
opened Shaw’s Carpet Cleaners Inc. , a sole
proprietorship on January 1. During January, the following transactions were
completed.
Jan 1 Invested
$10,000 in cash in the business.
Purchased
used truck for $6,000, paying $3,000 cash and the balance on account.
Purchased
cleaning supplies of $1,200 on account.
Jan 5 Paid
$1,200 cash on a 1-ear insurance policy effective Janurary 1.
Jan 14 Billed
customers $4,800 for cleaning services performed.
Jan 18 Paid
$1,500 cash on amount owed on truck and $500 on amount owed on cleaning
supplies.
Jan 20 Paid
$1,800 cash for employee salaries.
Jan 21 Collected
$1,400 cash from customers billed on January 14.
Jan 28 Billed
customers $4,500 for cleaning services.
Jan 31 Paid
$200 for gasoline bill for the truck.
Jan 31 Withdrew
$700 for personal use.

The Chart of
Accounts for Shaw’s Carpet Cleaners Inc. includes
101 Cash
112 Accounts
Receivable
126 Supplies
130 Prepaid
Insurance
157 Equipment
158 Accumulated
Depreciation- Equipment
201 Accounts
Payable
212 Salaries
and Wages Payable
301 Capital
306 Drawings
350 Income
Summary
400 Service
Revenue
631 Supplies
Expense
633 Gasoline
Expense
711 Depreciation
Expense
722 Insurance
Expense
726 Salaries
and Wages Expense

Instructions:
(a)
Open all general ledger
accounts.
(b)
Journalize and post the January
transactions. Use page J1 for the journal.
(c)
Prepare a trial balance at
January 31 on a worksheet. (Trial balance check figure$19,500)
(d)
Enter the following adjustments
on the worksheet and complete the worksheet.
(1)
Unbilled revenue for services
performed at January 31 was $500 (hint: Account Receivable)
(2)
Depreciation on equipment for
the month was $300
(3)
One- twelfth (1/12) of the
insurance expired.
(4)
An inventory count shows $250
of cleaning supplies on hand at January 31.
(5)
Accrued but unpaid employee
salaries were $550. (Adjusted Trial Balance check
figure $20,850)
(e)
Prepare the Income Statement
and Statement of Owner’s Equity for January and a classified Balance Sheet at
January 31. (Net income, $3,900; Total Assets, $15,950)
(f)
Journalize and post the
adjusting entries. Use the number of your Journal page where needed.
(g)
Journalize and post-closing
entries and complete the closing process. Use the number of your Journal page
where needed.
(h)
Prepare a post-closing trial
balance at January 31. (Post-closing trial $16,250)