Question

Required:

#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: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.

1-Dec

Began business by depositing $8500 in a bank account in the name of the company in exchange for

850 shares of $10 per share common stock.

1-Dec

Paid the rent for the current month, $750 .

1-Dec

Paid the premium on a one-year insurance policy, $1080 .

1-Dec

Purchased Equipment for $4800 cash.

5-Dec

Purchased office supplies from XYZ Company on account, $300 .

15-Dec

Provided services to customers for $6400 cash.

16-Dec

Provided service to customers ABC Inc. on account, $4000 .

21-Dec

Received $2000 cash from ABC Inc., customer on account.

23-Dec

Paid $170 to XYZ company for supplies purchased on account on December 5 .

28-Dec

Paid wages for the period December 1 through December 28, $4480 .

30-Dec

Declared and paid dividend to stockholders $200 .

#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.

#3.

Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31.

#4.

Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" .

Provide the total of the credit column from the Unadjusted Trial Balance

Answer 1

Req-1
Date	account	Debit ($)	Credit ($)	calculation
1 Dec	cash	8500
	Common stock		8500
1 Dec	rent expense	750
	Cash		750
1 Dec	prepaid insurance	1080
	Cash		1080
1 Dec	equipment	4800
	Cash		4800
5 Dec	supplies	300
	Accounts payable		300
15 Dec	cash	6400
	Service revenue		6400
16 Dec	accounts receivable	4000
	Service revenue		4000
21 dec	cash	2000
	Accounts receivable		2000
23 dec	accounts payable	170
	Cash		170
28 dec	wages expense	4480
	Cash		4480
30 Dec	dividends	200
	Cash		200

​​​​Req-4

Total of credit column for unadjusted trial balance: $19,030

Company Unadjusted trial balance

Account names debit. Credit

Cash. 5,420

Accounts receivable. 2,000

Supplies. 300

Prepaid insurance. 1,080

Equipment. 4,800

Accounts payable. 130

Common stock. 8,500   

Dividend. 200

Service revenue. 10,400

Wages expense. 4,480

Rent expense. 750

Totals. 19,030. 19,030

Req-2,3:

T-accounts

Date. Dr.   Cash. Cr

1 Dec. $ 8, 500 15 Dec. $ 6,400 21 Dec. $ 2,000	1 Dec. $ 750 1 Dec. $ 1,080 1 Dec. $ 4,800 23 Dec. $ 170 28 dec. $ 4,480 30 sec. $ 200
Balance. $ 5,420

Date. Dr. Accounts receivables. Cr

16 dec. $ 4,000	21 Dec $ 2,000
Balance. $ 2,000

Date. Dr. Supplies. Cr

5 Dec. $ 300
Balance. $ 300

Date. Dr. Prepaid insurance. Cr

1 Dec. $1,080
Balance. $ 1,080

Date. Dr. Equipment. Cr

1 Dec. $4,800
Balance. $4,800

Date. Dr. Accounts payable. Cr

	5 Dec. $ 300
23 dec. $170
Balance. $130

Date. Dr. Wages expense. Cr

28 Dec. $ 4,480
Balance. $ 4,480

Date. Dr. Common stock. Cr

	1 dec. $8,500
	Balance. $8,500

Date. Dr. Dividends. Cr

30 Dec. $200
Balance. $ 200

Date. Dr. Rent expense. Cr

1 dec. $ 750
Balance. $750

Date. Dr. Service revenue. Cr

	15 dec. $6,400
	16 dec. $4,000
	Balance $10,400