A COMPREHENSIVE ACCOUNTING CYCLE PROBLEM: Subject #2
Theodore McMahon opened a law office on June 1, 2018:
The new business use the following accounts
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Land
Building
Accumulated Depreciation – Building
Furniture
Utilities Payables
Accounts Payable
Interest Payable
Salaries Payables
Notes Payables
Unearned Revenue
Retained earning
Common stock
Income Summary
Dividends
Rent Expense
Service Revenue
Supplies Expense
Salaries Expense
Depreciation Expense – Building
Utilities Expense
Interest Expense
The corporation performs adjusting entries monthly. Closing entries are performed each semester on
June 30 and December 31.
