Mini-Practice Set 1 Service Business Accounting Cycle Wells’ Consulting Services This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Wells’ Consulting Services for the month of January 2017. Assume that you are the chief accountant for Wells’ Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Wells’ Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January.
Purchased supplies for $6,000; issued Check 1015.
Purchased a one-year insurance policy for $7,200; issued Check 1016.
Sold services for $20,000 in cash and $4,000 on credit during the first week of January.
Collected a total of $4,000 on account from credit customers during the first week of January.
Issued Check 1017 for $3,200 to pay for special promotional advertising to new businesses on the local radio station during the month.
Collected a total of $3,500 on account from credit customers during the second week of January. Returned supplies that were damaged for a cash refund of $650.
Sold services for $20,700 in cash and $2,300 on credit during the second week of January.
Purchased supplies for $4,600 from White’s, Inc.; received Invoke 2384 payable in 30 days.
Sold services for 512,500 in cash and $3,350 on credit during the third week of January.
Collected a total of $4,500 on account from credit customers during the third week of January.
Issued Check 1018 for $6,075 to pay for maintenance work on the office equipment.
Issued Check 1019 for $3,200 to pay for special promotional advertising to new businesses in the local newspaper.
Received the monthly telephone big for $925 and paid it with Check 1020.
Collected a total of $1,600 on account from credit customers during the fourth week of January.
Issued Check 1021 for 53,000 to Office Plus, as payment on account for Invoice 2223.
Sent Check 1022 for $2,350 in payment of the monthly bill for utilities.
Sold services for $19,000 in cash and $2,750 on credit during the fourth week of January.
Issued Checks 1023-1027 for $25,750 to pay the monthly salaries of the regular employees and three part-time workers.
Issued Check 1028 for $15,000 for personal use.
Issued Check 1029 for $4,150 to pay for maintenance services for the month.
Purchased additional equipment for $15,000 from Contemporary Equipment Company; issued Check 1030 for $10,000 and bought the rest on credit.
The equipment has a five-year life and no salvage value.
Sold services for 55,600 in cash and $1,580 on credit on January 31.