Caleb Company's fiscal year runs from January through December. Its January 1, 2013's trial balances are below:

Summary of transactions that occurred during the year are below:
a. Sales of services..................................................$100,000
Out of the sales, credit sales was....................................30,000
b. Accounts Receivable collected....................................27,300
c. Shares issued for cash..............................................10,000
d. Salaries paid.........................................................50,000
Out of the salaries paid, Salaries Payable amount was.............9,000
e. Miscellaneous Expense paid.......................................24,000
f. Equipment Purchased...............................................15,000
g. Cash Dividends paid.................................................2,500
Other pertinent information:
Year-end accrued salaries.............................................$ 1,000
Equipment Depreciation.................................................2,000
Required:
Using the template provided by the instructor,
1. Set up the necessary T- accounts and enter the beginning balances from the trial balance provided.
2. Prepare a journal entry for each of the summary of transactions listed above.
3. Post the journal entries to the T-accounts.
4. Prepare an unadjusted trial balance.
5. Prepare and post adjusting journal entries. Enter the adjusting entries in the T-accounts as applicable. The two adjusting entries are the year-end accrued salaries and equipment depreciation provided in the question.
6. Prepare an adjusted trial balance.
7. Prepare an income statement for year ended 2013 and a balance sheet as of December 31, 2013.
8. Prepare and post closing entries.
9. Prepare a post- closing trial balance.

Transcribed Image Text:

Account Title Debits Credits Cash $30,000 Accounts Receivable 15,000 Equipment 20,000 Accumulated Depreciation $6,000 Salaries Payable 9,000 Common Stock 40,500 Retained Eamings 9,500 Total $65,000 S65,000