Reference no: EM133144596

Question - Use Redlands' 2020 balance sheet from Exhibit 2-1 in your Bergevin and MacQueen textbook as the starting point for this problem. Assume that Redlands had the following transactions in 2021:

1. Borrowed $80 in cash from a bank at the beginning of 2021.

2. Received $50 cash from the 2020 consulting engagement.

3. Paid $30 cash for the 2020 operating expenses.

4. Earned $60 in consulting revenue for 2021-collected one-half of the revenue in cash.

5. Incurred $35 of operating expenses in 2021-paid $20 of the operating expenses in cash.

6. Recorded 2021 depreciation expense of $15 on the equipment purchased in 2020.

7. Paid $8 of interest for the $80 cash borrowed at the beginning of 2021.

Now, use the Session 2 Comprehensive Problem Excel File to complete the tables for 2021:

1. Record the transactions in the general journal.

2. Post the entries to the ledger (Note that the 2021 beginning balances in each account have already been entered for you, where appropriate).

3. Construct a trial balance.

4. Present the financial statements in good form.

5. Close the temporary accounts.