This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Wells’ Consulting Services for the month of January 2015. Assume that you are the chief accountant for Wells’ Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 2 – 6. The chart of accounts for Wells’ Consulting Services has been expanded to include a few new accounts. Follow all the instructions to complete the accounting records for the month of January 2015. Well\'s Consulting Services Chart of Accounts ASSETS (100-199) REVENUE (400-499) 101 Cash 401 Service Fee Income 111 Accounts Receivable 121 Supplies EXPENSES (500-599) 134 Prepaid Insurance 137 Prepaid Rent 511 Salaries Expense 141 Equipment 514 Utilities Expense 142 Accumulated Depreciation, Equipment 517 Supplies Expense 520 Rent Expense LIABILITIES (200-299) 523 Depreciation Expense, Equipment 526 Advertising Expense 202 Accounts Payable 529 Maintenance Expense 532 Telephone Expense OWNER\'S EQUITY (300-399) 535 Insurance Expense 301 Carolyn Wells, Capital 302 Carolyn Wells, Drawing 309 Income Summary Instructions continued: Set-up a General Ledger Account for each account listed in the Chart of Accounts. Copy in “opening balance” figures for January 1, 2015 into the proper General Ledger. (Hint: the necessary figures are from the Post-closing Trial Balance prepared on December 31, 2014, which appears below. (Only include an opening balance figure for the accounts listed with a balance, otherwise, there is no opening balance). Analyze each business transaction, which appear on the next page and then journalize the transactions into the General Journal. Number the General Journal as “Page 1” to begin journalizing the January 2015 transactions into the General Journal. Post the transactions into the General Ledger accounts.(check figures for Cash & A/R are on page 4) Prepare the “Unadjusted” Trial Balance Section of the Worksheet (AF-12A & 12B). Prepare the “Adjustments” Section of the Worksheet (AF-12A & 12B). Number the General Journal as “Page 4” to record the adjustments in the General Journal and post the adjustments to the General Ledger accounts. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31st showed supplies of $2,000 on hand. Compute and record the adjustment for expired insurance for the month. Record the adjustment for expired rent of $4,000 for the month. Record the monthly depreciation adjustment of $183 on the existing (old) equipment. The depreciation adjustment on the new equipment purchased in January will not begin until February. Complete the Worksheet. Prepare the “Adjusted” Trial Balance Section of the Worksheet as well as extend the figures to the Income Statement & Balance Sheet Sections of the Worksheet. Prepare the Income Statement and the Statement of Owner’s Equity for the mon.

1. This project will give you an opportunity to apply your knowledge of accounting principles and
procedures by handling all the accounting work of Wells’ Consulting Services for the month of
January 2015.
Assume that you are the chief accountant for Wells’ Consulting Services. During January, the
business will use the same types of records and procedures that you learned about in Chapters 2
– 6. The chart of accounts for Wells’ Consulting Services has been expanded to include a few
new accounts. Follow all the instructions to complete the accounting records for the month of
January 2015.
Well's Consulting Services
Chart of Accounts
ASSETS (100-199)
REVENUE (400-499)
101
Cash
401
Service Fee Income
111
Accounts Receivable
121
Supplies
EXPENSES (500-599)
134
Prepaid Insurance
137
Prepaid Rent
511
Salaries Expense
141
Equipment
514
Utilities Expense
142
Accumulated Depreciation, Equipment
517
Supplies Expense

2. 520
Rent Expense
LIABILITIES (200-299)
523
Depreciation Expense, Equipment
526
Advertising Expense
202
Accounts Payable
529
Maintenance Expense
532
Telephone Expense
OWNER'S EQUITY (300-399)
535
Insurance Expense
301
Carolyn Wells, Capital
302
Carolyn Wells, Drawing
309
Income Summary
Instructions continued:
Set-up a General Ledger Account for each account listed in the Chart of Accounts. Copy in
“opening balance” figures for January 1, 2015 into the proper General Ledger. (Hint: the
necessary figures are from the Post-closing Trial Balance prepared on December 31, 2014, which
appears below. (Only include an opening balance figure for the accounts listed with a balance,
otherwise, there is no opening balance).
Analyze each business transaction, which appear on the next page and then journalize the
transactions into the General Journal. Number the General Journal as “Page 1” to begin
journalizing the January 2015 transactions into the General Journal.
Post the transactions into the General Ledger accounts.(check figures for Cash & A/R are on
page 4)
Prepare the “Unadjusted” Trial Balance Section of the Worksheet (AF-12A & 12B).
Prepare the “Adjustments” Section of the Worksheet (AF-12A & 12B). Number the General

3. Journal as “Page 4” to record the adjustments in the General Journal and post the adjustments to
the General Ledger accounts.
Compute and record the adjustment for supplies used during the month. An inventory taken on
January 31st showed supplies of $2,000 on hand.
Compute and record the adjustment for expired insurance for the month.
Record the adjustment for expired rent of $4,000 for the month.
Record the monthly depreciation adjustment of $183 on the existing (old) equipment. The
depreciation adjustment on the new equipment purchased in January will not begin until
February.
Complete the Worksheet. Prepare the “Adjusted” Trial Balance Section of the Worksheet as well
as extend the figures to the Income Statement & Balance Sheet Sections of the Worksheet.
Prepare the Income Statement and the Statement of Owner’s Equity for the month ending
January 31, 2015 and the Balance Sheet as of January 31, 2015. There are no owner investments
in January 2015.
Journalize and post “Closing Entries”. record the closing entries in the General Journal and post
the closing entries to the General Ledger accounts.
Prepare a Post-closing Trial Balance. (See the check figure for the Post-Closing Trial
Wells' Consulting Services
Post-closing Trial Balance
December 31, 2014
Account Name/Title
Debit
Credit
CASH
$ 111,350
ACCOUNTS RECEIVABLE
5,000
SUPPLIES
1,000
PREPAID RENT
4,000
EQUIPMENT
11,000
ACCUMULATED DEPRECIATION-EQUIPMENT
$ 183

4. ACCOUNTS PAYABLE
3,500
CAROLYN WELLS, CAPITAL, 12/31/2014
128,667
Totals:
$ 132,350
$ 132,350
DATE
BUSINESS TRANSACTIONS
January 2
Purchased supplies for $3,000 cash; issued Check No. 1015.
2
Purchased & paid for a one-year insurance policy for $4,800; issued Check No. 1016.
7
Sold & provided services during the first week of January. $15,000 in cash sales and
$1,800 in credit sales.
12
Collected a total of $1,500 in cash from credit customers during the first week
of January.
12
Issued Check No. 1017 for $2,150 to pay for special promotional advertising to
new businesses on the local radio station during the month.
13
Collected a total of $2,250 in cash from credit customers during the second week
of January.
14
Returned supplies that were damaged for a cash refund of $275.
15
Sold & provided services during the second week of January. $18,250 in cash sales and
$2,375 in credit sales.
20
Purchased supplies for $1,800 from White's, Inc.; received Invoice No. 2384 payable
in 30 days.
20
Sold & provided services during the third week of January. $9,050 in cash sales and
$5,850 in credit sales.

5. 20
Collected a total of $1,750 in cash from credit customers during the third week
of January.
21
Issued Check No. 1018 for $4,250 to pay for maintenance work on the office
equipment.
22
Issued Check No. 1019 for $2,750 to pay for special promotional advertising to
new businesses on the local newspaper.
23
Received the monthly telephone bill for $410 and paid it with Check No. 1020.
26
Collected a total of $4,570 in cash from credit customers during the fourth week
of January.
27
Issued Check No. 1021 for $2,000 to a vendor, as payment on account for Invoice
No. 2223.
28
Sent Check No. 1022 for $1,050 in payment of the monthly bill for utilities.
29
Sold & provided services during the fourth week of January. $14,050 in cash sales and
$2,250 in credit sales.
31
Issued Check No.'s 1023 - 1027 for $15,500 to pay the monthly salaries of the
regular employees and three part-time workers.
31
Issued Check No. 1028 for $6,000 for personal use.
31
Issued Check No. 1029 for $1,050 to pay for maintenance services for the month.
31
Purchased new equipment for $10,500 from Contemporary Equipment Company;
issued Check No. 1030 for $5,500 and put the rest on account/credit. The equipment
has a 5 year useful life & no salvage value but depreciation won’t begin until February.
31
Sold & provided services on January 31st. $2,850 in cash sales and $1,450 in credit sales.
Mini-Practice Set #1

6. Wells’ Consulting Services
Check Figures
The ending balance of the Cash Account in the General Ledger at January 31st, 2015 is
$132,435.
The ending balance of the Accounts Receivable Account in the General Ledger at January 31st,
2015 is $8,655.
The ending balance of the Accounts PayableAccount in the General Ledger at January 31st, 2015
is $8,300.
On the worksheet, the Adjustments (Section 2) debit & credit column totals are $8,108.
The “Post-Closing” Trial Balance debit & credit column totals at January 31st, 2015 is $168,990.
Well's Consulting Services
Chart of Accounts
ASSETS (100-199)
REVENUE (400-499)
101
Cash
401
Service Fee Income
111
Accounts Receivable
121
Supplies
EXPENSES (500-599)
134
Prepaid Insurance
137
Prepaid Rent
511
Salaries Expense
141
Equipment
514
Utilities Expense
142
Accumulated Depreciation, Equipment
517

7. Supplies Expense
520
Rent Expense
LIABILITIES (200-299)
523
Depreciation Expense, Equipment
526
Advertising Expense
202
Accounts Payable
529
Maintenance Expense
532
Telephone Expense
OWNER'S EQUITY (300-399)
535
Insurance Expense
301
Carolyn Wells, Capital
302
Carolyn Wells, Drawing
309
Income Summary
Solution
This question is a combination of 12 questions:
(1) Prepare T-accounts (2) Post opening balances in T-Accounts(3) Journal entries(4) Posting to
ledger (5) Unadjusted trial balance (6) Prepare adjustment entries (7) Adjusted trial balance (8)
Income statement (9) Balance sheet (10) Statement of retained earnings (11) Closing entries (12)
Post-closing trial balance.
(1) Preparation of T-Accounts [For 21 individual accounts] AND (2) Beginning balances
Following are the T-accounts. The beginning balances have been posted for applicable accounts.
NOTE: Out of 12 questions the 1st 2 questions are answered.CASH 101DR$CR$Balance
b/d1,11,350TOTAL1,11,350