This paper concentrates on the primary theme of J. Miracle, an expert art and furniture restorer buys a studio where he has opened Like New, a sole proprietorship. His accountant has prepared the following chart of account {see attachment} in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.

Textbook Review:

J. Miracle, an expert art and furniture restorer buys a studio where he has opened Like New, a sole proprietorship. His accountant has prepared the following chart of account {see attachment}

Following are the transactions for May

May

1. Miracle deposited $100,000 in a bank account in the name of business, Dep. Slip No. 16292
2. Miracle bought Like New for $125,400. The assets include a building, $90,000; van, $18,500; office equipment, $12,600; office furniture, $4,300. Paid $36,000 in cash (Ck. No 1000) and placed the balance on a martgage note. (Debit each asset separately and credit Cash and Mortgage Payable.)
4 Bought supplies on account from The Piant Pot, $2,290, Inv. 961.
5 Bought advertising on account from Adam`s advertising, $841, Inv. 3162
May

7. Sold services on Account to Adeline Harris, $1256, Sales Inv. 2001.
9. Sold services for cash to customers, $4, 167, Cash Receipt Nos. 1100-1106.
11. Bought insurance for the business from Drake Agency for one year, $1,153, Check No. 1001.
12. Bought office equipment on account from Office Ready, $698, Invoice 6136
15. Paid wages of part-time assistant for the first half of the month, 4850, Check No. 1002
16. Received on account from J. Wilson, a customer, $540, Cask Receipt No. 1107.
17. Sold services for cash to customers, $5,173, Cash Receipt No. 1108 - 1116.
18. The owner withdrew cash for personal use, $1,100, Check No. 1003.
19. Received and paid the bill for repairs, $459, Check No. 1004.
21. Bought additional office furniture on account from Au Furniture, $723, Invoice 475.
22. Sold services on account to Jeff Isely, $1,536, Sakes Inv. 2002.
23. Sold services on account to Mike Willen, $2,314, Sales Invoice 2003.
25. Received and paid for utility bill, $345, Check No. 1005.
27 Paid $300 on account to Office Ready, a creditor, $300, Check No. 1006, Invoice 6136.
31. Paid wages of part-time assistant for the second half of the month, $850, Check No. 1007.

Instructions

1. Open general ledger software. (e.g. Excel)
2. Create and save a file as Likenew
3. Journalize the transactions in the general journal and post them to the general ledger.
4. Print the general journal.
5. Print the general ledger.
6. Print a trial balance.

ADJUSTMENTS INFORMATION

a. Wages accrued or earne since the last payday, 442.50 (owed and to be paid on the next payday).
b. Depreciation expense on office furniture, $1100 - remember to credit the accumulated depreciation account for office furniture, not Office Furniture.
c. Depreciation expense on office equipment, $890 --- remember to credit the accumulated depreciation account for office equipment, not Office Equipment.
d. Depreciation expense on van, $1,100 --- remember to credit the accumulated depreciation to van, not Van.
e. Depreciation expense on building, $3,500 --- remember to credit the accumulated depreciation to building, not Building.
f. Expired or used-up insurance, $96.08.
g. Supplies inventory (left or unused), $1,336 --- calculate the amount of the expired or used-up supplies.

Instructions

a. Open the document that was saved Likenew.
b. Journalize and post the adjusting entries
c. Print an income statement, statement of owner`s equity and balance sheet.
d. Print the general journal.
e. Print the general Ledger.
f. Save the file as LikeNew2.