Reference no: EM132863090
Question -
Step 1: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate:
- 1-Dec Issue common stock in exchange for cash of $8,500.
- 1-DecPaid the premium in advance on a one-year insurance policy, $1,320.
- 1-DecPurchased Equipment for $3,600 cash.
- 5-DecPurchased office supplies from XYZ Company on account, $600.
- 15-DecProvided services to customers for $8,400 cash.
- 16-DecProvided services to customer ABC Inc. on account, $7,000.
- 17-DecReceived $2,300 cash in advance from a customer for services to be provided in January.
- 22-DecPaid $220 to XYZ company for the Dec 5 purchase on account.
- 23-DecReceived $3,000 cash from customer, ABC Inc., on account.
- 25-DecPaid the rent for the current month, $1,250.
- 28-DecPaid salaries to employees for work performed from December 1 through December 28, $5,040.
- 29-DecDeclared and paid dividends to stockholders $400.
- 30-DecPurchased land by signing 3 year note payable for $11,000.
Step 2: Post all of the December transactions from the "General Journal" tab to the T-accounts under the "T-Accounts" tab in the excel template file "Accounting Cycle Excel Template.xlsx".
Assume there are no beginning balances in any of the accounts.
Step 3: Compute the balance for each T-account after all of the entries have been posted.
Step 4: Prepare the unadjusted trial balance on the "Unadjusted Trial Balance" tab. 1 Provide the total of the credit column from the Unadjusted Trial Balance
Step 5: Record the December adjusting entries on the "General Journal" tab.
- 31-DecOne month's insurance has expired $110.
- 31-DecThe remaining inventory of unused office supplies is $90.
- 31-DecThe estimated depreciation on equipment is $60.
- 31-DecSalaries incurred from December 29 to December 31 but not yet paid or recorded total $540. Step 6: Post all of the adjusting entries to the T-accounts on the "T-Accounts" tab. Compute the balance for each T-account after all of the adjusting entries have been posted.
Step 7: Prepare the adjusted trial balance on the "Adjusted Trial Balance" tab.
- Check point 1: Adjusted trial balance total debit/credit = $ 38,180
Provide the following amounts from the Adjusted Trial Balance: (Be sure to enter all numbers as positive and no answer should be left blank.)
- Cash
- Accounts Receivable
- Supplies
- Prepaid Insurance
- Equipment
- Land
- Accumulated Depreciation
- Accounts Payable
- Deferred Revenue
- Salaries Payable
- Notes Payable
- Common Stock
- Retained Earnings
Step 8: Prepare the Income Statement, Statement of Stockholder's Equity and Classified Balance Sheet on the "Financial Statements" tab for the month ended December 31, 20XX.
- Provide the following amount from the Income Statement: (Be sure to enter all numbers as positive and no answer should be left blank.)
-Service Revenue
-Depreciation Expense
-Salaries Expense
-Supplies Expense
-Rent Expense
-Insurance Expense
- Net Income Provide the following account balances from the Balance Sheet: (Be sure to enter all numbers as positive and no answer should be left blank.)
-Current Assets
-Long-Term Assets
-Current Liabilities
-Long-Term Liabilites
-Total Liabilities
- Total Stockholder's Equity Provide the following account balance from the Statement of stockholders' Equity: (Be sure to enter all numbers as positive and no answer should be left blank.)
Step 9: Record the closing entries on the "General Journal" tab.
Step 10: Post all of the closing entries to the T-accounts on the "T-Accounts" tab. Compute the balance for each T-account after all of the closing entries have been posted.
Step 11: Prepare the post closing trial balance for the month ended December 31, 20XX on the Post-Closing Trial Balance tab.
- Provide the total of the debit column from the Post Closing Trial Balance
- Provide the balance of the Retained Earnings T-account after closing entries have been posted.