Amberton University McCoy Consulting Company Accounting Project Discussion

McCoy Consulting Company started the period with cash of $29,000, common stock of $15,000, and retainedearnings of $14,000. McCoy engaged in the following transactions in 2020:Transactions during 2020

1. On January 1, 2020, purchased office furniture for $14,000.

2. On March 1, paid $6,000 for an insurance policy that provides coverage for 12 months beginning immediately.

3. Purchased $2,000 of supplies for cash.

4. Provided $41,000 of services for cash.

5. Paid $9,200 for salaries expense.

6. On April 1, received $14,000 for services that will be performed over the next 12 months beginningimmediately.Information for Adjusting Entries

7. The furniture had an estimated life of six years and a $2,000 salvage value.

8. Recognized the expired insurance.

9. An inventory of supplies showed $350 of supplies on hand as of December 31.

10. Recognized the revenue associated with Event 6 as of December 31.

Chart of Accounts100

Cash104

Accounts receivable 108

Prepaid insurance 112

Supplies 116

Office furniture 114

Accumulated depreciation 200

Accounts payable 204

Wages payable 208

Salaries payable212

Taxes payable218

Unearned revenue300

Common stock320

Retained earnings400

Service revenue900

Salaries expense904

Depreciation expense908

Insurance expense910

Supplies expenseRequirements:1. In journal entry form, record the transactions that occurred during 2020, items 1 through 6.2. Prepared the unadjusted trial balance3. In journal entry form, record the adjusting entries, items 7 through 10.4. Prepare the Income Statement, in good form.5. Prepare the Balance Sheet, in good form.6. Prepare the Statement of Cash Flows, in good form.7. A classmate states, “Since financial accounting has so many rules and requirements, ethics is not anissue”. Is ethics an issue in accounting? Explain. Limit your response to one page (double-spaced).How to submit your project:• Label journal entries to correspond with the appropriate letter, i.e. 1 through 10.• Your completed project must be submitted to the dropbox in our Moodle course.