Question

1. Prepare journal entry, 2. post to t-accounts (ledgers), 3. prepare trial balance, 4. prepare adjusting journal entries, 5. post adjusting journal entries to t-accounts(ledgers), 6. prepare adjusted trial balance, 7. prepare income statement, 8. prepare retained earnings statement, 9. prepare balance sheet, 10. prepare closing entries, 11.post closing entries to t-accounts(ledgers), 12. prepare post-closing trial balance. Answered from 1 to 12 in numerical order.

For the past several years, Aaron Jones has operated a consulting business from his home on a part-time basis. As of December 1, 20X1, Aaron decided to move to rented quarters and incorporate his business as Progress Consulting Inc. Progress Consulting entered into the following transactions during December: 12/1 Aaron Jones invested the following assets in the business: cash, $60,000; supplies, $11,000; and office equipment, $25,000. Mr. Jones received stock in an amount equal to his investment in the corporation. 12/2 Paid $8,400 for rent for December 20X1 through February 28, 20X2. 12/3 Paid $13,200 for a one year premium on property and casualty insurance. The policy covers the period December 1, 20X1 to November 30, 20X2. 12/4 Received $12,000 cash from a client as an advance payment for services to be performed in the future. 12/5 Purchased additional office equipment on account from Payne Company for $10,000. 12/10 Paid $6,000 for a newspaper advertisement that ran in today's paper. 12/11 Paid Payne Company $4,000 for part of the debt incurred on December 5. 12/12 Billed clients for services performed on account, $5,400. 12/17 Received cash payment from client for services performed on this date, $15,000. 12/18 Paid $6,000 for supplies. 12/20 Billed clients for services performed on account, $16,000. 12/24 Received cash payment from client for services performed on this date, $3,000. 12/25 Received cash from clients as payment on account, $4,000. 12/30 Paid $550 for utilities for December. 12/31 Paid cash dividend of $5,000.

Answer 1

Prepare journal entries as follows:

Date	Account Titles	Debit	Credit
Dec. 01	Cash	$60,000
	Supplies	$11,000
	Office Equipment	$25,000
	Common stock		$96,000
Dec. 02	Prepaid Rent	$8,400
	Cash		$8,400
Dec. 03	Prepaid Insurance	$13,200
	Cash		$13,200
Dec. 04	Cash	$12,000
	Unearned Service revenue		$12,000
Dec. 05	Office Equipment	$10,000
	Accounts payable		$10,000
Dec. 10	Advertisement Expense	$6,000
	Cash		$6,000
Dec. 11	Accounts payable	$4,000
	Cash		$4,000
Dec. 12	Accounts receivable	$5,400
	Service Revenue		$5,400
Dec. 17	Cash	$15,000
	Service Revenue		$15,000
Dec. 18	Supplies	$6,000
	Cash		$6,000
Dec. 20	Accounts receivable	$16,000
	Service Revenue		$16,000
Dec. 24	Cash	$3,000
	Service Revenue		$3,000
Dec. 25	Cash	$4,000
	Accounts receivable		$4,000
Dec. 30	Utilities Expense	$550
	Cash		$550
Dec. 31	Dividends	$5,000
	Cash		$5,000

________________________________________________________

Post t-accounts as follows:

____________________________________________________________________

Unadjusted Trial Balance
	Debit	Credit
Cash	$50,850
Accounts Receivable	$17,400
Prepaid Rent	$8,400
Prepaid Insurance	$13,200
Supplies	$17,000
Office Equipment	$35,000
Accounts payable		$6,000
Unearned service revenue		$12,000
Common stock		$96,000
Dividends	$5,000
Service Revenue		$39,400
Advertisement Expense	$6,000
Utilities Expense	$550
Totals	$153,400	$153,400

Kindy re-post for other parts.

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