This is an accounting Case study Assignment. Please use the AP-12A section of the PDF to complete the excel workbook.
Chapter 5 The Accounting Cycle: Adjustments 182 b) Create the journal entries for the adjustments from the worksheet. date Account Title and explanation Pr debit Credit AP-12A LO 3 4 5 6 7 Zig Zag Robotics has the following adjustments to make at the end of September 2018, the end of its fiscal year. Sep 30 Unearned revenue of $850 has now been earned Sep 30 A count of the office supplies shows that $430 worth of supplies still remains on hand Sep 30 Salaries accrued but not yet paid amount to $2,430 Sep 30 Monthly depreciation on equipment was $600 The chart of accounts is shown below. Account description Account # Account description Account # AsseTs oWner's eQuiTy Cash 101 Rizzo, Capital 300 Accounts Receivable 105 Rizzo, Withdrawals 310 Office Supplies 110 Equipment 120 reVenue Accumulated Depreciation—Equipment 130 Service Revenue 400 liABiliTies eXPenses Accounts Payable 200 Salaries Expense 530 Unearned Revenue 210 Depreciation Expense 535 Salaries Payable 220 Supplies Expense 540 Chapter 5The Accounting Cycle: Adjustments 183 required a) Complete the six-column spreadsheet. Zig Zag robotics spreadsheet september 30, 2018 unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title dr Cr dr Cr dr Cr Cash $3,000 Accounts Receivable 950 Office Supplies 830 Equipment 5,500 Accumulated Depreciation—Equipment $1,800 Accounts Payable 1,250 Unearned Revenue 1,700 Rizzo, Capital 4,030 Rizzo, Withdrawals 500 Service Revenue 4,200 Salaries Expense 2,200 Total $12,980 $12,980 b) Journalize the adjustments. date Account Title and explanation Pr debit Credit Chapter 5 The Accounting Cycle: Adjustments 184 c) Post the transactions to the general ledger accounts provided. Account: office supplies gl no: 110 date: description Pr dr Cr Balance Opening Balance Account: Accumulated depreciation—equipment gl no: 130 date: description Pr dr Cr Balance Opening Balance Account: unearned revenue gl no: 210 date: description Pr dr Cr Balance Opening Balance Account: salaries Payable gl no: 220 date: description Pr dr Cr Balance Opening Balance Account: service revenue gl no: 400 date: description Pr dr Cr Balance Opening Balance Account: salaries expense gl no: 530 date description Pr dr Cr Balance Opening Balance Account: depreciation expense gl no: 535 date description Pr dr Cr Balance Opening Balance Account: supplies expense gl no: 540 date description Pr dr Cr Balance Opening Balance Chapter 5The Accounting Cycle: Adjustments 185 Analysis What is the purpose of preparing a spreadsheet before journalizing and posting adjusting entries, and before preparing financial statements? AP-13A LO 6 On January 1, 2018, Precision Machinery purchased a new piece of equipment for $100,000. The equipment is expected to last five years and will have no residual value. Precision Machinery has a December 31 year end. Prepare the table below showing the yearly depreciation, accumulated depreciation and net book value of the equipment. year original Cost of equipment depreciation expense Accumulated depreciation net Book Value 2018 2019 2020 2021 2022 Total AP-14A LO 6 On March 1, 2018, Jefferson Consulting purchased new computers for $19,000. The computers are expected to last three years and have an estimated residual value of $1,000. Jefferson has a December 31 year end. Prepare the table below showing the yearly depreciation, accumulated depreciation and net book value of the computers. year original Cost of Computers depreciation expense Accumulated depreciation net Book Value 2018 2019 2020 2021 Total