Intermediate Accounting Accounting Cycle Project Complete Solution
Intermediate Accounting
Accounting Cycle Project
You have been engaged to perform accounting services for Herman and Sons’ Law Offices. Your responsibilities include maintaining all accounting records and preparing annual financial statements. Herman and Sons’ opened on January 1, 2015. During the year, the firm had the following transactions:
Your first step is to analyze each transaction during Herman and Sons’ first year of business and enter them into the accounting system. Specifically, you first perform the following tasks.
Next, you begin to prepare the annual financial statements. Before preparing the statements, you identify the following additional information.
Using this additional information, you are able to make required adjusting journal entries, prepare the financial statements and close the books for the year. To accomplish these tasks, you must perform the following:
d. Journalize adjusting journal entries for Herman and Sons’.
e. Post adjusting journal entries.
f. Prepare an adjusted trial balance as of December 31.
g. Prepare the financial statements including:
- single-step income statement,
- a statement of changes in shareholders’ equity,
- a balance sheet, and
- a statement of cash flows.
h. Journalize and post the necessary closing entries at year-end.
i. Prepare a post-closing trial balance as of December 31, 2015.
You prepare the following chart of accounts for Herman and Sons’ Law Offices:
Chart of Accounts |
||
Group |
Account # |
Account Title |
100: Assets |
|
|
|
101 |
Cash |
|
102 |
Accounts receivable |
|
103 |
Office supplies |
|
104 |
Prepaid insurance |
|
110 |
Building |
|
112 |
Accumulated depreciation - building |
|
|
|
200: Liabilities |
|
|
|
201 |
Accounts payable |
|
202 |
Unearned service revenue |
|
203 |
Wages payable |
|
210 |
Interest payable |
|
220 |
Notes payable |
|
|
|
300: Equity |
|
|
|
301 |
Capital stock |
|
310 |
Retained earnings |
|
320 |
Dividends declared |
|
|
|
400: Revenues |
|
|
|
401 |
Service revenue |
|
|
|
500: Expenses |
|
|
|
501 |
Wage expense |
|
502 |
Utilities expense |
|
503 |
Selling expense |
|
504 |
Administrative expense |
|
505 |
Insurance expense |
|
506 |
Supplies expense |
|
510 |
Depreciation expense |
|
520 |
Interest expense |
|
|
|
600: Other |
|
|
|
601 |
Income summary |
|
|
|
Intermediate Accounting Accounting Cycle Project Complete Solution
Service Revenue $309,000 Less: Expenses Wage Expense 74,000 U...
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