Here is An Accounting Case study. The Excel has been attached along with the instructions for the assignment in a PDF.
Chapter 6The Accounting Cycle: Statements and Closing Entries 259 Case Study CS-1 LO 1 2 3 4 Grindstone Paving provides residential and commercial paving services. Its balance sheet at the end of June 2018 is shown below, along with its chart of accounts. grindstone Paving Balance Sheet As at June 30, 2018 Assets liabilities Cash $7,580 Accounts Payable $15,800 Accounts Receivable 6,000 Unearned Revenue 6,200 Prepaid Insurance 1,800 Notes Payable 22,000 Equipment 55,000 Total liabilities 44,000 owner’s equity Stone, Capital 26,380 Total Assets $70,380 Total liabilities and owner’s equity $70,380 Account description Account # ASSeTS Cash 101 Accounts Receivable 105 Prepaid Insurance 110 Equipment 120 Accumulated Depreciation—Equipment 125 liABiliTieS Accounts Payable 200 Interest Payable 205 Salary Payable 210 Unearned Revenue 215 Notes Payable 220 oWner’S eQuiTy Stone, Capital 300 Stone, Withdrawals 310 Income Summary 315 Account description Account # reVenue Service Revenue 400 eXPenSeS Advertising Expense 500 Depreciation Expense 510 Insurance Expense 515 Interest Expense 520 Salaries Expense 545 Telephone Expense 550 For the month of July 2018, Grindstone Paving had the following transactions. Jul 1 The owner invested $8,000 cash into the business Jul 2 Received $2,530 cash for work that will be provided in August Jul 5 Received an advertising bill for $600, which will be paid next month Jul 8 Paid the $350 telephone bill with cash Jul 10 Provided $4,680 worth of services to customers who will pay later Jul 14 Purchased equipment with $8,200 cash Jul 20 Received $2,350 in payment from customers paying their accounts Jul 22 Paid $1,970 toward accounts payable Jul 24 Paid $1,300 toward principal of the note payable Jul 28 Paid salary of $2,400 to an employee Jul 30 The owner withdrew $2,200 cash for personal use Chapter 6 The Accounting Cycle: Statements and Closing Entries 260 At the end of July, the following adjustments had to be journalized to properly report the balances of the company’s accounts. Jul 31 One month of prepaid insurance worth $100 has been used Jul 31 Monthly depreciation on the equipment was $450 Jul 31 Unearned revenue worth $620 has now been earned Jul 31 Interest of $75 has accrued on the of the note payable Jul 31 Accrued salary expense of $500 for an employee Note: Of the remaining balance of the note payable, $5,000 will be paid within the next year. required a) Enter the opening balances from the June 2018 balance sheet into the general ledger accounts (the ledger accounts are presented at the end of this question). b) Prepare the journal entries for the month of July and post them to the appropriate general ledger accounts. date Account Title and explanation Pr debit Credit Chapter 6The Accounting Cycle: Statements and Closing Entries 261 c) Create the trial balance in the spreadsheet and then complete the remaining section of the spreadsheet. unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title dr Cr dr Cr dr Cr d) Prepare the income statement. e) Prepare the statement of owner’s equity. Chapter 6 The Accounting Cycle: Statements and Closing Entries 262 f ) Prepare the classified balance sheet. g) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts. date Account Title and explanation Pr debit Credit Chapter 6The Accounting Cycle: Statements and Closing Entries 263 h) Prepare the journal entries to close the books for the month of July 2018 (use the income summary account), and post the journal entries to the appropriate general ledger accounts, which start on the next page. JournAl Page 3 date Account Title and explanation Pr debit Credit i) Create the post-closing trial balance. Chapter 6 The Accounting Cycle: Statements and Closing Entries 264 generAl ledger Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Chapter 6The Accounting Cycle: Statements and Closing Entries 265 Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Chapter 6 The Accounting Cycle: Statements and Closing Entries 266 Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance Account: gl no: date description Pr dr Cr Balance