Heckel Enterprises experienced the following events for 2013, the first year of operation:

1. Acquired $26,000 cash from the issue of common stock.

2. Paid $8,000 cash in advance for rent. The payment was for the period April 1, 2013, to

March 31, 2014.

3. Performed services for customers on account for $54,000.

4. Incurred operating expenses on account of $27,000.

5. Collected $50,300 cash from accounts receivable.

6. Paid $17,000 cash for salary expense.

7. Paid $23,000 cash as a partial payment on accounts payable.

Adjusting Entries

8. Made the adjusting entry for the expired rent.

9. Recorded $1,800 of accrued salaries at the end of 2013.

Events for 2014

1. Paid $1,800 cash for the salaries accrued at the end of the prior accounting period.

2. Performed services for cash of $17,000.

3. Purchased $2,400 of supplies on account.

4. Paid $9,000 cash in advance for rent. The payment was for one year beginning April 1, 2014.

5. Performed services for customers on account for $84,000.

6. Incurred operating expenses on account of $38,500.

7. Collected $81,000 cash from accounts receivable.

8. Paid $40,000 cash as a partial payment on accounts payable.

9. Paid $28,000 cash for salary expense.

10. Paid a $12,000 cash dividend to stockholders.

Adjusting Entries

11. Made the adjusting entry for the expired rent.

12. Recorded supplies expense. A physical count showed that $300 of supplies were still on hand.

Required

a. Record the events and adjusting entries for 2013 in general journal form.

b. Post the 2013 events to T-accounts.

c. Prepare a trial balance for 2013.

d. Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for 2013.

e. Record the entries to close the 2013 temporary accounts to Retained Earnings in the general journal and post to the T-accounts.

f. Prepare a post-closing trial balance for December 31, 2013.

g. Repeat requirements a through f for 2014.