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 $6,500.                 
       1-Dec   Paid the premium in advance on a one-year insurance policy, $600.                 
       1-Dec   Purchased Equipment for $4,200 cash.                 
       5-Dec   Purchased office supplies from XYZ Company on account, $450.                 
       15-Dec   Provided services to customers for $5,600 cash.                 
       16-Dec   Provided services to customer ABC Inc. on account, $2,800.                 
       17-Dec   Received $900 cash in advance from a customer for services to be provided in January.                 
       22-Dec   Paid $230 to XYZ company for the Dec 5 purchase on account.                 
       23-Dec   Received $1,600 cash from customer, ABC Inc., on account.                 
       25-Dec   Paid the rent for the current month, $550.                 
       28-Dec   Paid salaries to employees for work performed from December 1 through December 28, $4,480.                 
       29-Dec   Declared and paid dividends to stockholders $250.                 
       30-Dec   Purchased land by signing 3 year note payable for $6,000.                 
                                          
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-Dec   One month’s insurance has expired $50.                       
       31-Dec   The remaining inventory of unused office supplies is $90.                       
       31-Dec   The estimated depreciation on equipment is $70.                       
       31-Dec   Salaries incurred from December 29 to December 31 but not yet paid or recorded total $480.                 
                                          
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 =   $ 22,570  

Answer 1

Prepare journal entries as follows:

Date	Account Titles	Debit	Credit
Dec. 01	Cash	$6,500
	Common Stock		$6,500
Dec. 01	Prepaid Insurance	$600
	Cash		$600
Dec. 01	Equipment	$4,200
	Cash		$4,200
Dec. 05	Office Supplies	$450
	Accounts payable		$450
Dec. 15	Cash	$5,600
	Service revenue		$5,600
Dec. 16	Accounts receivable	$2,800
	Service revenue		$2,800
Dec. 17	Cash	$900
	Unearned revenue		$900
Dec. 22	Accounts payable	$230
	Cash		$230
Dec. 23	Cash	$1,600
	Accounts receivable		$1,600
Dec. 25	Rent Expense	$550
	Cash		$550
Dec. 28	Salaries expense	$4,480
	Cash		$4,480
Dec. 29	Dividends	$250
	Cash		$250
Dec. 30	Land	$6,000
	Notes payable		$6,000

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Prepare t-account as follows:

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Prepare adjusting entries as follows:

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Balance Sheet
Assets
Cash		$4,290
Accounts receivable		$1,200
Office supplies		$90
Prepaid insurance		$550
Equipment	$4,200
Accumulated depreciation	($70)	$4,130
Land		$6,000
Total Assets		$16,260
Liabilities
Accounts payable	$220
Unearned revenue	$900
Salaries payable	$480
Notes payable	$6,000
Total Liabilities		$7,600
Stockholders' equity
Common stock	$6,500
Retained earnings	$2,160	$8,660
Total liabilities and SE		$16,260

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