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I don't know how to complete an accounting cycle for these transactions December 1st 20XX Trial...

I don't know how to complete an accounting cycle for these transactions

December 1st 20XX Trial Balance

                                                           

Debit               Credit

Cash                                                    2,500

Accounts Receivable                          3,000              

Notes Receivable                               1,000

Supplies                                              800

Land                                                    22,600

Machinery                                          22,000

Accumulated Depreciation-Machine                                    2,400

Accounts Payable                                                       5,000

Unearned Service Revenue                                       1,200

Common Stock                                                           20,000

Retained Earnings                                                      23,300

                                                            51,900             51,900

1.     The following transactions occurred during December 20XX

December 5. Paid creditors $1,000

December 9. Billed customer for professional services completed, $1,000

December 17. Received collections from customers, $2,000

December 18. Ordered supplies on credit, $250

December 19. Professional fees earned received in cash, $7,000

December 29. Paid salaries to employees, $1,500

December 30. Paid rent expense, $2,000

a.     Prepare appropriate December entries

b.     Fill in the balances as of December 1, 20XX, in the ledger accounts (“T” Account form) and post December entries from the journal to the ledger.

2.     Based upon the ledger account balances, prepare a trial balance for December 30, 20XX

1.     Based upon the trial balance for Larkin Corporation for December 30, 20XX. Complete the adjusting entries below:

a.     Supplies used, $300

a.     Depreciation on Machinery, $500

b.     Of the unearned Revenue, $400 has been earned during the period

c.      Interest earned on a customer’s note receivable, $80

2.     Create an adjusting trial balance

1.     Based on the adjusted trial balance for December 30, 20XX, create Larkin’s Income Statement, Retained Earnings and Balance Sheet.

1.     Prepare Closing Entries for Larkin Corporation at December 20XX

a.     Step 1: Close revenues to Retained Earnings

b.     Step 2: Close expenses to Retained Earnings

c.     Close Dividends to Retained Earnings

Solutions

Expert Solution

JOURNAL   ENTRY FOR DECEMBER 20XX
Date Account Title Debit Credit
December,5 Accounts Payable $1,000
Cash $1,000
December,9 Accounts Receivable $1,000
Service Revenue $1,000
December,17 Cash $2,000
Accounts Receivable $2,000
December,18 No accounting entry isrequired at the time of ordering
Entry is required after receipt of goods and invoice
December,19 Cash $7,000
Service Revenue $7,000
December,29 Salaries expense $1,500
Cash $1,500
December,30 Rent expense $2,000
Cash $2,000
T-Accounts
Cash
Date Description Debit Credit
December,01 Beginning Balance $2,500
December,5 Accounts Payable $1,000
December,17 Accounts Receivable $2,000
December,19 Service Revenue $7,000
December,29 Salaries expense $1,500
December,30 Rent expense $2,000
Ending Blance $7,000
Accounts Receivable
Date Description Debit Credit
December,01 Beginning Balance $3,000
December,9 Service Revenue $1,000
December,17 Cash $2,000
Ending Balance $2,000
Notes Receivable
Date Description Debit Credit
December,01 Beginning Balance $1,000
Supplies
Date Description Debit Credit
December,01 Beginning Balance $800
Land
Date Description Debit Credit
December,01 Beginning Balance $22,600
Machinery
Date Description Debit Credit
December,01 Beginning Balance $22,000
Accumulated Depreciation-Machine
Date Description Debit Credit
December,01 Beginning Balance $2,400
Accounts Payable
Date Description Debit Credit
December,01 Beginning Balance $5,000
December,5 Cash $1,000
Ending Balance $4,000
Unearned Service Revenue
Date Description Debit Credit
December,01 Beginning Balance $1,200
Common Stock
Date Description Debit Credit
December,01 Beginning Balance $20,000
Retained Earnings
Date Description Debit Credit
December,01 Beginning Balance $23,300
Service Revenue
Date Description Debit Credit
December,9 Accounts Receivable $1,000
December,19 Cash $7,000
Ending Balance $8,000
Salaries Expenses
Date Description Debit Credit
December,29 Cash $1,500
Rent expense
Date Description Debit Credit
December,30 Cash $2,000
TRIAL    BALANCE,DECEMBER 30, 20XX ADJUSTING ENTRIES ADJUSTING TRIAL BALANCE
Account Debit Credit Ref Debit Credit Account Debit Credit
Cash $7,000 Cash $7,000
Accounts Receivable $2,000 Accounts Receivable $2,000
Notes Receivable $1,000 Notes Receivable $1,000
Supplies $800 a $300 Supplies $500
Land $22,600 Land $22,600
Machinery $22,000 Machinery $22,000
Accumulated Depreciation-Machine $2,400 a $500 Accumulated Depreciation-Machine $2,900
Accounts Payable $4,000 Accounts Payable $4,000
Unearned Service Revenue $1,200 b $400 Unearned Service Revenue $800
Common Stock $20,000 Common Stock $20,000
Retained Earnings $23,300 Retained Earnings $23,300
Service Revenue $8,000 b $400 Service Revenue $8,400
Salaries Expenses $1,500 Salaries Expenses $1,500
Rent expense $2,000 Rent expense $2,000
Total $58,900 $58,900 Supplies expense $300
Supplies expense a $300 Depreciation expense $500
Depreciation expense a $500 Interest Income $80
Interest Income c $80 Interest receivable $80
Interest receivable c $80 Total $59,480 $59,480
Income Statement
Service Revenue $8,400
Interest Income $80
Total Income $8,480
Expenses:
Salaries Expenses $1,500
Rent expense $2,000
Supplies expense $300
Depreciation expense $500
Totalexpenses $4,300
Income $4,180
Retained Earnings
Retained Earning in the beginning $23,300
Add:Income transferred from comprehensive income statement $4,180
Ending Retained Earning $27,480
Balance Sheet
Assets:
Cash $7,000
Accounts Receivable $2,000
Notes Receivable $1,000
Supplies $500
Land $22,600
Machinery $22,000
Accumulated Depreciation-Machine ($2,900)
Interest receivable 80
Total Assets $52,280
Liabilities:
Accounts Payable $4,000
Unearned Service Revenue $800
TotalLiabilities $4,800
Shareholders' Equity:
Common Stock $20,000
Retained Earnings $27,480
TotalShareholders'Equity $47,480
Total Liabilities & ShareholdersÉquity $52,280

ekkarill92 answered 1 year ago
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