Accounting Process Full Example

Sheet3 Sheet2 Sheet1 Full Accounting Process For the Month of October, 2009, the following transactions take place in ABC Solutions, a new business. 1) Owner invests $20,000 into business 2) Buy equipment $10,000 on account 3) Buy supplies for cash $800 6) Pay 8 months membership in advance $400 7) Pay salaries $300 8) Pay for utilities $250 4) Sell on account $1500 9) Owner withdraws $600 for personal use The following information is also available at the month end b) At the month end, $350 of salaries were unrecorded c) Inventory of supplies is $ 240 e) There is accrued revenue of $300 Required: Journals, ledgers, trial balance, adjustments, close the accounts, financial reports Journals Ref Description DR CR Cash Capital Equipment a) Equipment depreciation is $150 per month Accounts Payable 10) Pay $3000 relating to transaction 2 Supplies PP Accounts Receivable 11) Receive $400 relating to transaction 4 Revenue Unearned Revenue d) Relating to transaction 5, $1000 service have been provided 5) Receive payment for consulting service in advance $3000 Membership PP Salary Expense Utilities Exp Withdrawals A1 Depreciation Expense Accumulated Depreciation A2 Salary Payable A3 Supplies Expense A4 A5 A6 Membership Expense PP Membership Ledger Assets Bals Equity cr dr Liabilities Utilities Expense Dr Memebership Expense Trial Balance C1 Income Summary C2 C3 C4 C5 C6 C7 C8 Post Closing Trial Balance Income Statement ABC Solutions Less Expenses Total Expenses Net Income Statement Owners Equity Opening Balance Capital Introduced Balance Sheet Total Assets Liabilities and Equity Total Liabilities Total Liabilities and Equity 0.00 00000.00 00000.00 0.00 00000.00 00000.00 0.00 000.00 000.00 0.00 0000.00 0000.00 0.00 0000.00 0000.00 0.00 000.00 000.00 0.00 000.00 000.00 0.00 000.00 000.00 0.00 000.00 000.00 00.00 0000.00 0000.00 00.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 0000.00 0000.00 000.00 000.00 00.00 00.00 0000.00 0000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 00.00 00.00 0000.00 0000.00 000.00 000.00 0.00 00000.00 00000.00 0.00 000.00 00000.00 0.00 0000.00 00000.00 0.00 000.00 00000.00 0.00 000.00 00000.00 0.00 000.00 00000.00 0.00 000.00 00000.00 00.00 0000.00 00000.00 00.00 000.00 00000.00 0.00 00000.00 00000.00 000.00 000.00 0.00 000.00 000.00 000.00 000.00 0.00 0000.00 0000.00 00.00 000.00 0000.00 000.00 0000.00 0.00 000.00 000.00 00.00 000.00 0.00 00000.00 00000.00 00.00 0000.00 0000.00 000.00 000.00 0.00 0000.00 0000.00 0000.00 0000.00 0.00 00000.00 00000.00 0000.00 00000.00 000.00 00000.00 0.00 000.00 000.00 000.00 0000.00 0000.00 000.00 0000.00 000.00 0000.00 000.00 0000.00 000.00 0000.00 00.00 0000.00 0000.00 0.00 0000.00 0000.00 0000.00 0000.00 000.00 0000.00 0000.00 0.00 000.00 000.00 000.00 000.00 000.00 0.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 000.00 00.00 00.00 00.00 00000.00 00000.00 000.00 000.00 0000.00 000.00 0000.00 000.00 0000.00 00000.00 000.00 0000.00 000.00 000.00 000.00 000.00 00.00 00000.00 00000.00 00000.00 00000.00 000.00 000.00 0000.00 000.00 0000.00 000.00 0000.00 00000.00 00000.00 00000.00 10/1/2009 0000.00 000.00 000.00 000.00 000.00 00.00 0000.00 0000.00 10/1/2009 0.00 00000.00 0000.00 00000.00 000.00 00000.00 10/31/2009 00000.00 00000.00 000.00 0000.00 000.00 0000.00 000.00 00000.00 0000.00 000.00 0000.00 0000.00 00000.00 00000.00