会计学英文实验

Business case for Manual Accounting

Haupt Consulting began its operations of consulting business on December 2010. The following transaction occurred and were completed on December.

Date Transactions

Dec 2 Received $10,000 cash from owner Carl Haupt

Dec 2 Paid monthly office rent, $500

Dec 3 Paid cash for a Dell computer, $2,000. This equipment is expected to remain in service for five years

Dec 4 Purchase office furniture on account, $3,600. The furniture should last for five years Dec 5 Purchased supplies on account, $300

Dec 9 Performed consulting service for a client on account, $1,700.

Dec 12 Paid utility expenses, $200.

Dec 18 Performed service for a client and received cash of $800.

Dec 21 Received $900 in advance for client service to be performed evenly over the next 30 days

Dec 21 Hire a secretary to be paid $ 1,500 on the 20th day of each month. The secretary begins work immediately.

Dec 26 Paid $300 on account

Dec 28 Collected $600 on account

Dec 30 Owner withdrew $1,600

Dec 31 The business gathers the following information for the adjusting entries:

a.Accrued service revenue, $400

b.Earned $300 of the service revenue collected in advance on December 21.

c.Supplies on hand, $100

d.Accrued $700 expense for secretary’s salary.

Dec 31 Depreciation enpense adjustment:

Haupt Consulting had purchased a Dell computer and office furniture on December

3 and 4, respectively. And these assets were expected to last five years. Assuming

both assets are using double-declining-balance depreciation, calculate and record the

amount of depreciation for each asset for the year ended December 31, 2010.

Haupt performs systems consulting. It has also begun selling accounting software. During January, Haupt Consulting completed the following transactions. The company uses LIFO perpetual

inventory system to determine Cost of Good Sold and the ending inventory. As for account receivables, Haupt uses the allowance method to estimate uncollectibles.

Date Transactions

Jan 1 Haupt believes the company will need $500,000 and plans to raise the capital by issuing 6%, 10 year bonds on January. The bonds pay interest semiannually on

January 1 and July 1. On January 1, the market rate of interest required by similar

bonds by investors is 8%. The first interest payment date is on July 1, 2011.

Jan 2 Completed a consulting engagement and received cash of $7,200

Jan 2 Prepaid three months office rent, $1,500

Jan 7 Purchased 100 units software inventory on account, $1,900, plus freight in, $100 Jan 16 Paid employee salary, $1,400

Jan 18 Sold 70 software units on account, $3,100

Jan 19 Consulted with a client for a fee of $900 on account

Jan 21 Paid on account, $2,000

Jan 22 Purchased 200 units software inventory on account,$4,600

Jan 24 Paid utilities, $300

Jan 28 Sold 100 units software for cash, $4,000

Jan 31 Recorded the following adjusting entries:

Accrued salary expense, $1,400

Expiration of prepaid rent, $500

Haupt uses the allowance method for receivables, estimationg uncollectibles to be

3% of credit sales.

Calculate and record Depreciation for January.

Accrued interest expense for bond

Required

1.Journalize the December transactions （Including adjusting entries）and post to the ledger .

2.Calculate the ending balance for each account, and prepare adjusted trial balance on

December 31

3.Journalize and post the closing entries on December 31.

4.Prepare the income statement for the month ended December 31, 2010, and prepare the

balance sheet at that date.

ing the same steps, accounting for transactions in January

Accounting cycle: journal---ledger---trial balance---adjusting—ledger---adjusted trial balance---closing----statement

Notes: the beginning balance for relevant account in January come from the ending balance in