Problem Junior B0

Omnis Mus Problem Junior B0 (--> use with JRBASE00.MDB)

General journal entries can be entered using either transaction analysis format or debit credit format. Transaction analysis format is the initial setting. This preference can be changed from the Main Menu (click Options), and/or from the keyboard used to input numbers in a general journal transaction (click Format).

Transaction 1 : June 1

Molly Company began business as a corporation by issuing 8,000 shares of $10 par value common stock for cash of $10 per share.

Transaction 2 : June 1

Molly Company spends $4,500 cash to prepay two months rent for office space to be used for the business.

Transaction 3 : June 1

Molly Company spends $15,300 cash to purchase equipment to be used in the business. The equipment has an expected useful life of three years and is expected to have no value at the end of its useful life.

Transaction 4 : June 1

Molly Company purchases $7,200 of supplies to be used in the business on account (i.e., a purchase on credit to be paid later).

Transaction 5 : June 12

Molly Company billed customers for $38,725 of services it had performed for them on account.

Transaction 6 : June 19

Molly Company pays wages of $2,700 in cash to several persons hired for office help.

Transaction 7 : June 19

Molly Company received a prepayment of $3,200 cash from a customer for services to be provided at a later date.

Transaction 8 : June 19

Molly Company collected $13,225 cash from customers as payments on their accounts.

Transaction 9 : June 19

Molly Company paid an $780 bill for utilities expense in cash.

Transaction 10 : June 19

Molly Company paid $4,500 cash on the firm's accounts payable.

Transaction 11 : June 24

Molly Company declares and pays cash dividends of $1,200 to its stockholders.

2. Adjusting Entries at Month's End

Transaction 12 : June 30

A physical count and analysis shows that only $3,800 of supplies are on-hand at the end of the month.

Transaction 13 : June 30

Record the adjusting entry to establish rent expense for the month.

Transaction 14 : June 30

Record the adjusting entry to establish depreciation expense for the month using the straight-line method of depreciation.

Transaction 15 : June 30

In transaction 7, Molly Company received a prepayment of $3,200 cash from a customer for services to be provided at a later date.  At month's end, Molly Company has provided $1,800 worth of the promised services to the customer.

Transaction 16 : June 30

On June 30, Molly Company's employees are owed wages of $2,600, with payment to be made the following week.

3. Close Accounts: Prepare Statements

Open the general ledger, and click Options. Click Close Accounts.

Financial statements may be viewed after closing from the Report form.  Review the financial statements, and correct any errors as necessary.  If you make any corrections, then you must Close Accounts again to have the financial statements updated for your corrections.

You may Close Accounts as often as you wish.

PLEASE NOTE:

Post Closing Entries will zero all revenue and expense accounts.  Do not Post Closing Entries until you are certain that you are finished with your assignment(s).  If in doubt, do not Post Closing Entries. You do NOT have to post Closing Entries to produce financial statements.