Reference no: EM13488847

Question :

Caleb Company's fiscal year runs from January through December. Its January 1, 2013's trial balances are below:

Summary of transactions that occurred during the year are below:

 

Account Title	Debits	Credits
Cash	$30,000
Accounts Receivable	15,000
Equipment	20,000
Accumulated Depreciation	$ 6,000
Salaries Payable	9,000
Common Stock	40,500
Retained Earnings	9,500
Total	$ 65,000	$ 65,000

Summary of transactions that occurred during the year are below:

a. Sales of services	$100,000
Out of the sales, credit sales was	30,000
b. Accounts Receivable collected	27,300
c. Shares issued for cash	10,000
d. Salaries paid	50,000
Out of the salaries paid, Salaries Payable amount was	9,000
e. Miscellaneous Expense paid	24,000
f. Equipment Purchased	15,000
g. Cash Dividends paid	2,500

Other pertinent information:

Year-end accrued salaries	$ 1,000
Equipment Depreciation	2,000

Required:

Using the template provided by the instructor,

Set up the necessary T- accounts and enter the beginning balances from the trial balance provided.

Prepare a journal entry for each of the summary of transactions listed above.

Post the journal entries to the T-accounts.

Prepare an unadjusted trial balance.

Prepare and post adjusting journal entries. Enter the adjusting entries in the T-accounts as applicable. The two adjusting entries are the year-end accrued salaries and equipment depreciation provided in the question.

Prepare an adjusted trial balance.

Prepare an income statement for year ended 2013 and a balance sheet as of December 31, 2013.

Prepare and post closing entries.

Prepare a post- closing trial balance.