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Accounting Cycle Practice Problem - Final Exam

Illustre & Family Inc. operated by Jill Victorino entered transactions from April 1-29, 2022 which were recorded in the general journal and posted to T-accounts. Various adjustments were made including depreciation, supplies, insurance, salaries, rent and unearned revenue. Financial statements were prepared including an income statement, statement of cash flows, statement of equity and balance sheet. Closing entries were recorded and a post-closing trial balance was prepared.

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AMNEERA SHANIA LALANTO
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122 views

Accounting Cycle Practice Problem - Final Exam

Illustre & Family Inc. operated by Jill Victorino entered transactions from April 1-29, 2022 which were recorded in the general journal and posted to T-accounts. Various adjustments were made including depreciation, supplies, insurance, salaries, rent and unearned revenue. Financial statements were prepared including an income statement, statement of cash flows, statement of equity and balance sheet. Closing entries were recorded and a post-closing trial balance was prepared.

Uploaded by

AMNEERA SHANIA LALANTO
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ACT100 and ACT101

FINAL EXAMNINATION

ACCOUNTING CYCLE PRACTICE PROBLEM


The following practice problem is an example of the material that will be tested on the competency
exam. The actual exam is not as long as the practice problem and will not have you completing all parts
below, but this comprehensive practice problem will prepare you for the Accounting Process Cycle
problem in the competency exam. Use the information and worksheets to practice the problem. The
answers have been provided. Use the following information and complete the instructions below:
For the past several years, Jill Victorio has operated a part-time business from his home. As of April 1,
2022, Jill decided to move to rented quarters and to operate the business, which was to be known as
Illustre & Family Inc., on a full-time basis. Illustre & Family entered into the following transactions
during April:
April 4 The following assets were received from Jill Victorino: cash, $10,000; accounts receivable,
$1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received.
April 4 Paid three months' rent on a lease rental contract, $4,500.
April 4 Paid the premium on property and casualty insurance policies for the year, $1,800.
April 6 Received cash from clients as an advance payment for services to be provided, $3,000.
April 7 Purchased additional office furniture on account from Broken Company, $1,800.
April 8 Received cash from clients on account, $800.
April 11 Paid cash for newspaper advertisement, $120.
April 12 Paid Broken Company $800 for debt incurred on April 7.
April 15 Recorded services provided on account for the period April 4-15, $2,250
April 15 Paid part-time receptionist for two weeks salary, $400.
April 15 Recorded cash from cash clients for fees earned April 4-15, $3,175.
April 18 Paid cash for supplies, $750.
April 22 Recorded services provided on account for April 18-22, $1,100.
April 22 Recorded cash from cash clients for fees earned April 18-22, $1,850.
April 25 Received cash from clients on account, $1,600.
April 27 Paid part-time receptionist for two week's salary, $400.
April 28 Paid telephone bill for April, $130.
April 29 Paid electric bill for April, $200.
April 29 Recorded cash from cash clients for fees earned April 25-29, $2,050.
April 29 Recorded services provided on account for April 25-29, $1,000.
April 29 Jill received $4,500 from the company as his salary.
Instructions: (Place your answer on an excel file)
1. Record the transactions stated above in good general journal form.
2. Post the transactions to T-accounts.
3. Record and post the following adjustments:
a. Insurance expired in April, $150.
b. Supplies on hand April 29, $1,020.
c. Depreciation for the office equipment in April, $500.
d. Accrued receptionist salary on April 30, $20.
e. Rent expired in April, $1,500.
f. Earned $2,000 of services that were previously paid for on 4/6.
5. Prepare an Income Statement, Statement of Cashflow, Statement of Changes in Equity and Balance
Sheet.
6. Record and post-closing entries.
7. Prepare a post-closing trial balance.

CHART OF ACCOUNTS

ASSETS LIABILITIES CAPITAL INCOME EXPENSES


Cash Accounts Payable Jill, Capital Service Revenue Insurance
Expense
Accounts Salaries Payable Depreciation
Receivable Expense
Prepaid Rent Unearned Rent Expense
Revenue
Prepaid Insurance Supplies Expense
Supplies Salaries Expense
Office Equipment Telephone
Expense
Accumulated Utilities Expense
Depreciation,
Equipment
Advertising
Expense

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