PROJECT INFORMATION AND INSTRUCTIONS
An excel worksheet is provided to complete this project. All information is to be completed in the excel
worksheet and then submitted for grading. This project is worth 100 points.
For several years, Chuck Berry has operated a part-time consulting business from his home. As of
October 1, 2012, Chuck decided to move to rented offices and to operate the business as a professional
corporation, which was to be known as Epic Consulting on a full-time basis. During the month of
October, the company entered into the following transactions.
Oct. 1 The following assets were received from Chuck Berry in exchange for capital stock: Cash
$ 12,000; accounts receivable, $ 6,000; supplies, $ 1,500; and office equipment, $ 9,000. No
liabilities were transferred to the new company by Chuck.
1 Paid three monthâ€™s rent on the office space. $ 4,800
2 Paid the premiums on property and casualty insurance policies, $ 3,000
4 Received cash from clients as an advance payment for services to be provided and recorded it
as unearned fees, $ 4,000.
5 Purchased additional office equipment on account from Office Station, Co. $ 2,000
6 Received cash from clients on account, $ 3,500
10 Paid cash for a newspaper advertisement, $ 400
12 Paid Office Station, Co. for part of the debt incurred on Oct. 5, $ 1,000
12 Recorded services provided on account for the period October 1 â€“ 12, $ 6,000
14 Paid part-time receptionist for two weeksâ€™ salary, $ 1000
RECORD THE FOLLOWING TRANSACTIONS ON PAGE 2 OF THE JOURNAL
17 Recorded cash from cash clients for fees earned during the period October 1 â€“ 14, $ 7,500
18 Paid cash for supplies, $ 750
20 Recorded services provided on account for the period October 13 â€“ 20, $ 5,200
24 Recorded cash from cash clients for fees earned for the period October 17 â€“ 24, $ 3,700
26 Received cash from clients on account, $5,500
27 Paid part-time receptionist for two weeksâ€™ salary, $ 1,000
29 Paid telephone bill for October, $ 250
31 Paid electricity bill for October, $ 300
31 Recorded cash from cash clients for fees earned for the period October 25 â€“ 31, $ 2,800
31 Recorded services provided on account for the remainder of October, $ 3,000
31 Paid dividends of $ 8,000
1. Journalize each transaction in a two-column journal starting on Page 1, referring to the
following chart of accounts in selecting the accounts to be debited and credited.
12 Accounts Receivable
15 Prepaid Rent
16 Prepaid Insurance
18 Office Equipment
19 Accumulated Depreciation
21 Accounts Payable
22 Salaries Payable
23 Unearned Fees
31 Capital Stock
31 Retained Earnings
41 Fees Earned
51 Salary Expense
52 Rent Expense
53 Supplies Expense
54 Depreciation Expense
55 Insurance Expense
59 Miscellaneous Expense
2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of October, the following adjustment data were available. Analyze and use this data
to complete parts 5 and 6 below.
a. Insurance expired during October is $ 250
b. Supplies on hand on October 31 are $ 700
c. Depreciation of office equipment for October is $ 300
d. Accrued receptionist salary on October 31 is $ 250
e. Rent expired during October is $ 1,600
f. Unearned fees on October 31 are $ 1,800
5. Enter the unadjusted trial balance on an end-of-period spreadsheet (worksheet) and complete
6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the Journal.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a retained earnings statements and a balance sheet.
9. Prepare and post the closing entries. ( Income Summary is account # 34 in the chart of
accounts.) Record the closing entries on Page 4 of the journal. Indicate closed accounts by
inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.
11. Save your completed excel worksheet and submit for grading.