This document outlines the accounting cycle for a company, including journal entries, T-accounts, adjustments, trial balances, financial statements, and closing entries. Key events include issuing stock, purchasing equipment, paying and receiving various expenses and revenues, and closing entries to transfer account balances to income summary and retained earnings accounts.

1. ACCOUNTING CYCLE BY THAWBAN BAIG

2. TABLE OF CONTENTS QUESTION # 2 SOLUTION JOURNAL GENERAL LEDGER T-ACCOUNTS ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT STATEMENT OF RETAINED EARNINGS

3. TABLE OF CONTENTS CLOSING ENTRIES AFTER CLOSING TRIAL BALANCE

4. JOURNAL GENERAL DEC 1 CASH 200,000 CAPITAL STOCK 200,000 ISSUED 2000 SHARES OF CAPITAL STOCK DEC 1 EQUIPMENT 240,000 NOTES PAYABLE 100,000 CASH 140,000 PURCHASED EQUIPMENT AND ISSUED NOTES PAYABLE DATE PARTICULARS Dr Cr

5. JOURNAL GENERAL DEC 1 PREPAID RENT 12000 CASH 12000 PAID ADVANCE RENT DEC 4 OFFICE SUPPLIES 1000 AC.PAYABLE 1000 PURCHASED OFFICE SUPPLIES ON ACCOUNT DATE PARTICULARS Dr Cr

6. JOURNAL GENERAL DEC 8 CASH 8000 UNEARNED RENTAL FEE 8000 RECEIVED UNEARNED FEE DEC 12 SALARIES EXPENSE 5200 CASH 5200 PAID SALARIES EXPENSE DATE PARTICULARS Dr Cr

7. JOURNAL GENERAL DEC 15 CASH 12000 ACCOUNTS RECEIVABLE 6000 EARNED RENTAL FEE 18000 EARNED FEE RECEIVED DEC 17 MAINTENANCE EXPENSE 600 ACCOUNTS PAYABLE 600 PAID MAINTENANCE EXPENSE DATE PARTICULARS Dr Cr

8. JOURNAL GENERAL DEC 23 CASH 2000 ACCOUNTS RECEIVABLE 2000 COLLECTED ACCOUNTS RECV. DEC 23 ACCOUNTS RECEIVABLE 5250 UNEARNED RENTAL FEE 5250 RENTED A BACKHOE DATE PARTICULARS Dr Cr

9. JOURNAL GENERAL DEC 26 SALARIES EXPENSE 5200 CASH 5200 PAID BIWEEKLY SALARIES DEC 27 ACCOUNTS PAYABLE 600 CASH 600 PAID ACCOUNTS PAYABLE DATE PARTICULARS Dr Cr

10. JOURNAL GENERAL DEC 28 DIVIDENTS 2000 DIVI.PAYABLE 2000 10 CEN PER SHARE DIVIDENT DEC 29 UNEXPIRED INSURANCE 9600 CASH 9600 PURCHASED INSUR. POLICY DATE PARTICULARS Dr Cr

11. JOURNAL GENERAL DEC 31 UTILITIES EXPENSE 700 A.PAYABLE 700 RECEIVED UTILITIES BILL DEC 31 CASH 15600 ACCOUNTS RECEIVABLE 4400 EARNED RENTAL FEE 20000 EARNED EQ. RENTAL FEE DATE PARTICULARS Dr Cr

12. LEDGER T-ACCOUNTS Cash capital stock Dr Cr 200,000 140,000 8,000 12,000 12,000 5,200 2,000 5,200 15,600 600 9,600 172,600 65,000 237600 237600 237,600 Dr Cr 200,000 200,000 200,000 200,000

13. LEDGER T-ACCOUNTS Rental equipment prepaid rent Dr Cr 240,000 240,000 240,000 240,000 Dr Cr 12,000 12,000 12,000 12,000

14. LEDGER T-ACCOUNTS Notes payable office supplies Dr Cr 100,000 100,000 100,000 100,000 Dr Cr 1,000 1,000 1,000 1,000

15. LEDGER T-ACCOUNTS Dividends Dividend payable Dr Cr 2,000 2,000 2,000 2,000 Dr Cr 2,000 2,000 2,000 2,000

16. LEDGER T-ACCOUNTS unearned rental fee accounts payable Dr Cr 8,000 5,250 13,250 13,250 13,250 Dr Cr 600 1,000 600 700 17,00 2,300 2,300

17. LEDGER T-ACCOUNTS Salaries expense maintenance expense Dr Cr 5,200 5,200 10,400 10,400 10,400 Dr Cr 600 600 600 600

18. LEDGER T-ACCOUNTS Utilities expense accounts recievable Dr Cr 700 700 700 700 Dr Cr 6,000 2,000 5,250 4,400 13,650 15,650 15,650

19. LEDGER T-ACCOUNTS earned rental fee unexpired insurance Dr Cr 18,000 20,000 38,000 38,000 38,000 Dr Cr 9,600 9,600 9,600 9,600

20. ADJUSTMENTS DATE PARTICULARS Dr Cr A RENT EXPENSE 4000 PREPAID RENT 4000 ADVANCE PAYMENT OF RENT

21. ADJUSTMENTS DATE PARTICULARS Dr Cr B INTEREST EXPENSE 6000 INTEREST PAYABLE 6000 THE ANNUAL INTEREST RATE ON NOTES PAYABLE

22. ADJUSTMENTS DATE PARTICULARS Dr Cr C DEP. EXPENSE :RENTAL EQUIPMENT 2500 ACCUMULATED DEP:RENT EQUIP 2500 THE RENTAL EQUIPMENT BEING DEPRICIATED OVER PERIOD OF 8 YEARS

23. ADJUSTMENTS DATE PARTICULARS Dr Cr D SUPPLIES EXPENSE 400 OFFICE SUPPLIES 400 OFFICE SUPPLIES ON HAND AT 31 DEC

24. ADJUSTMENTS Date Particulars DR CR E UNEARNED RENTAL FEE 3700 EARNED RENTAL FEE 3700 THE COMPANY EARNED 3700 RENTAL FEE PAID IN ADVANCE

25. ADJUSTMENTS DATE PARTICULARS Dr Cr F UNEARNED RENTAL FEE 1500 EARNED RENTAL FEE 1500 6 DAYS RENT ON BACKHOE HAS BEEN EARNED

26. ADJUSTMENTS DATE PARTICULARS Dr Cr G SALARIES EXPENSE 1400 SALARIES PAYABLE 1400 SALARIES EARNED BY EMPLOYEES

27. ADJUSTMENTS DATE PARTICULARS Dr Cr H INCOME TAX EXPENSE 10520 INCOME TAX PAYABLE 10520 COMBINED STATE AND FEDERAL INCOME TAX

28. OFFICE SUPPLIES PREPAID OFFICE RENT T-ACCOUNTS AFTER ADJUSTMENTS Dr Cr 1,000 400 600 1000 1000 Dr Cr 12,000 4000 8000 12,000 12000

29. T-ACCOUNTS AFTER ADJUSTMENTS ACCUMULATED DEP: OFFICE EQUIP INTEREST PAYABLE Dr Cr 2,500 2,500 2,500 2,500 Dr Cr 6,000 6,000 6,000 6,000

30. T-ACCOUNTS AFTER ADJUSTMENTS INCOME TAX PAYABLE SALARIES PAYABLE Dr Cr 10,520 10,520 10,520 10,520 Dr Cr 1,400 1,400 1,400 1,400

31. UNEARNED RENTAL FEE DIVIDENDS T-ACCOUNTS AFTER ADJUSTMENTS Dr Cr 8,000 5200 5,250 8050 13250 13250 Dr Cr 2,000 2,000 2,000 2,000

32. T-ACCOUNTS AFTER ADJUSTMENTS Earned rental fee Salaries expense Dr Cr 18,000 20,000 5200 43200 43200 43200 Dr Cr 5,200 5,200 1400 11800 11800 11800

33. T-ACCOUNTS AFTER ADJUSTMENTS Interest expense Income tax expense Dr Cr 6,000 6,000 6,000 6,000 Dr Cr 10520 10520 10520 10520

34. T-ACCOUNTS AFTER ADJUSTMENTS RENT EXPENSE SUPPLIES EXPENSE Dr Cr 4000 4000 4000 4000 Dr Cr 400 400 400 400

35. T-ACCOUNTS AFTER ADJUSTMENTS DEP.EXP:RENTAL EQUIPMENT Dr Cr 2500 2500 2500 2500

36. INCOME STATEMENT REVENUE: RENTAL FEE REVENUE………………………………………………………………………………43200 EXPENSES: MAINTENANCE EXPENSE 600 UTILITIES EXPENSE 700 SALARIES EXPENSE 11,800 INTEREST EXPENSE 6,000 RENT EXPENSE 4,000 SUPPLIES EXPENSE 400 DEP EXPENSE: RENTAL EQUIPMENT 2500 INCOME TAXES EXPENSE 10520 NET INCOME 6680

37. STATEMENT RETAINED EARNING REVENUE: RENTAL FEE REVENUE………………………………………………………………………………43200 EXPENSES: MAINTENANCE EXPENSE 600 UTILITIES EXPENSE 700 SALARIES EXPENSE 11,800 INTEREST EXPENSE 6,000 RENT EXPENSE 4,000 SUPPLIES EXPENSE 400 DEP EXPENSE: RENTAL EQUIPMENT 2500 DIVIDENDS 2000 RETAINED EARNINGS 4680

38. CLOSING ENTRIES

39. CLOSING ENTRIES AND THERE LEDGERS RENTAL FEE EARNED 43200 INCOME SUMMARY 43200 RENTAL FEE EARNED 43200 INCOME SUMMARY 43200

40. CLOSING ENTRIES AND THERE LEDGERS INCOME SUMMARY…………………………………36520 MAINTENANCE EXP 600 UTILITIES EXPENSE 700 SALARIES EXP 11800 INTEREST EXP 6000 INCOME TAX EXP 10520 RENT EXP 4000 SUPPLIES EXP 400 DEP EXP:EQUIPMENT 2500

41. CLOSING ENTRIES AND THERE LEDGERS EXPENSE ACCOUNT INCOME SUMMARY 36520 36520

42. CLOSING ENTRIES AND THERE LEDGERS INCOME SUMMARY ……………………………………6680 RETAINED EARNINGS………………………………6680 INCOME SUMMARY RETAINED EARNING 43200(REV) 36520(EXP) 6680 6680(income) 6680(income)

43. CLOSING ENTRIES AND THERE LEDGERS CLOSING THE DIVIDENDS ACCOUNTS RETAINED EARNINGS……………………………………2000 DIVIDENDS………………………………………………..2000 DIVIDEND RETAINED EARNINGS 2000 2000 2000 6680(income) 4680

44. worksheet WORK SHEET ACCOUNTING.xls