Completing the Accounting Cycle I. Lee Technology

Completing the Accounting Cycle I.
Lee Technology Corporation
Unadjusted Trial Balance
December 31, 2014
Cash
$ 35,572
Accounts Receivable
59,680
Office Supplies
2,443
Prepaid Rent
2,400
Office Equipment
14,300
Accumulated Depreciation Office Equipment
$ 3,200
Accounts Payable
2,640
Notes Payable
15,000
Unearned Service Revenue
5,650
Common Stock
30,000
Retained Earnings
58,705
Dividends
15,000
Service Revenue
89,000
Salaries Expense
58,000
Utilities Expense
3,600
Rent Expense
13,200
Total
$ 204,195
$ 204,195
The following information is also available:
a. Ending inventory of office supplies, $ 538
b. Prepaid rent expired, $ 1,200
c. Depreciation of office equipment for the period, $ 800
d. Interest accrued on the note payable, $ 750
e. Salaries accrued at the end of the period, $ 800
f. Service revenue still unearned at the end of the period, $ 3,675
g. Service revenue earned but not billed, $ 1,800
h. Estimated federal income taxes for the period, $ 5,940
Requirements:
1. Prepare the adjusting entries.
2. Prepare an adjusted trial balance.
3. Prepare the financial statements: Income Statement, Statement of Retained Earnings, and the Balance Sheet.
4. Prepare the closing entries.
5. Prepare a post-closing trial balance.

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Adjusting Entries
a

b

c

d

e

f

g

h

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Adjusted Trial Balance
Lee Technology Corporation
Adjusted Trial Balance
December 31, 2014
Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Office Equipment
Accumulated Depreciation Office Equipment
Accounts Payable
Interest Payable
Salaries Payable
Notes Payable
Unearned Service Revenue
Income Taxes Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries Expense
Utilities Expense
Rent Expense
Office Supplies Expense
Depreciation Expense Office Equipment
Interest Expense
Income Tax Expense
Total

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Financial Statements
Lee Technology Corporation

Income Statement

For the Year ending December 31, 2014

Lee Technology Corporation

Statement of Retained Earnings
For the Year ending December 31, 2014

Lee Technology Corporation

Balance Sheet

December 31, 2014

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Closing Entries
R

E

I

D

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Post-closing Trial Balance
Lee Technology Corporation
Post-closing Trial Balance
December 31, 2014
Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Office Equipment
Accumulated Depreciation Office Equipment
Accounts Payable
Interest Payable
Salaries Payable
Notes Payable
Unearned Service Revenue
Income Taxes Payable
Common Stock
Retained Earnings
Total

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Lee Technology Corporation

Worksheet

Account Name

Cash
Accounts Receivable
Office Supplies
Prepaid Rent
Office Equipment
Accumulated Depreciation
Office Equipment
Accounts Payable
Notes Payable
Unearned Service Revenue
Interest Payable
Salaries Payable
Income Tax Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries Expense
Utilities Expense
Rent Expense
Office Supplies Expense
Depreciation ExpenseOffice Equipment
Interest Expense
Income Tax Expense
Total
Net Income
Total

Unadjusted Trial
Balance
debit
credit
35,572
59,680
2,443
2,400
14,300
3,200
2,640
15,000
5,650

December 31, 2014
Adjustments
Adjusted Trial
Balance
debit
credit
debit
credit

Income Statement
debit

credit

86,195

92,775

92,775

Balance Sheet
debit

credit

113,090

113,090

92,775

g
a
b
c

f
d
e
h

30,000
58,705
15,000
89,000
58,000
3,600
13,200

f
g
e
b
a
c
d
h

204,195

204,195

15,17
0

15,170

214,285

214,285

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