Q1. The following transactions occurred during Year 2, the second year of business for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits.

Q2. At the end of Year2, Nancy Nanny made the following adjusting journal entries. Record each adjusting entry in proper journal entry format below using debits and credits.

Q3. Post the Transaction Journal Entries from Question 1 Year 2 and the Adjusting Journal Entries from Question 2 Year 2 to the General Ledger below.
In Question 1

In Question 2

Q4. Compute the ending balance for each account.

Q5. Use the ending balances from the General Ledger to prepare the Adjusted Trial Balance below.

Q6. Use amounts from the Adjusted Trial Balance to prepare the Income Statement and the Statement of Stockholders€™ Equity. Use the forms provided below.

Q7. Use amounts from the General Ledger, Adjusted Trial Balance, and the Statement of Stockholders€™ Equity to prepare the Balance Sheet and the Statement of Cash Flows. Use the forms provided below.

Q8. Use amounts from the Adjusted Trial Balance to prepare the Closing Journal Entries and the Post-Closing Trial Balance. Use the forms provided below.

Nancy Nanny Child Care GENERAL JOURNAL Year2 Accounts Debit Credit Date TIE #1 On January 2,Nancy Nanny purchased a computer, printer, server, and related accessories for $10,000 cash. Due to fast changing computer technologies, Nancy Nanny decided to use the double-declining method of depreciation over a five-year life with no expected residual value Jan 2Property, plant, and equipment 10,000 Cash 10.000 TIE #2 On February 1. Nancy Nanny repaid the note payable from Year 1 plus interest Interest expense 130 TIE #3 On February 1: Nancy Nanny purchased supplies at a cost of $45,000. Paid cash Supply inventory Cash TIE #4 On December 8-Grandpa Meyer prepaid $6,000 toward next year's child care costs for Jason, his grandson, a child who regularly attends Nancy Nanny's TIE #5 On December 14, Nancy Nanny declares and distributes $20,000 of dividends to her investors Dividends Cash TIE #6 During Year 2. Nancy Nanny provided child care services on account totaling $180,000. Year 2 TIE #7 During Year 2, collections from customer receivables totaled S182.000 Year 2 TIE #8 During Year 2, paid employees $80,000 Year 2 Nancy Nanny Child Care GENERAL JOURNAL -Year 2 Date Accounts Debit Credit AJE #1 Record rent expense for the year. (Refer to Year 1 TIE #2) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to Year 1 TIE #3 and Year 2 TTE #1.) Dec 31 AJE #3 At the end of the second year, Nancy Nanny had $5.000 of supplies on hand that had not been used. (What amount of supplies did Nancy Nanny use during Year 22) Dec 31 Nancy Nanny Child Care GENERAL JOURNAL Year2 Accounts Debit Credit Date TIE #1 On January 2,Nancy Nanny purchased a computer, printer, server, and related accessories for $10,000 cash. Due to fast changing computer technologies, Nancy Nanny decided to use the double-declining method of depreciation over a five-year life with no expected residual value Jan 2Property, plant, and equipment 10,000 Cash 10.000 TIE #2 On February 1. Nancy Nanny repaid the note payable from Year 1 plus interest Interest expense 130 TIE #3 On February 1: Nancy Nanny purchased supplies at a cost of $45,000. Paid cash Supply inventory Cash TIE #4 On December 8-Grandpa Meyer prepaid $6,000 toward next year's child care costs for Jason, his grandson, a child who regularly attends Nancy Nanny's TIE #5 On December 14, Nancy Nanny declares and distributes $20,000 of dividends to her investors Dividends Cash TIE #6 During Year 2. Nancy Nanny provided child care services on account totaling $180,000. Year 2 TIE #7 During Year 2, collections from customer receivables totaled S182.000 Year 2 TIE #8 During Year 2, paid employees $80,000 Year 2 Nancy Nanny Child Care GENERAL JOURNAL -Year 2 Date Accounts Debit Credit AJE #1 Record rent expense for the year. (Refer to Year 1 TIE #2) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to Year 1 TIE #3 and Year 2 TTE #1.) Dec 31 AJE #3 At the end of the second year, Nancy Nanny had $5.000 of supplies on hand that had not been used. (What amount of supplies did Nancy Nanny use during Year 22) Dec 31 Nancy Nanny Child Care GENERAL LEDGER-Year 2 520 Depreciation Expense 110 Cash 220 Notes Payable 310 Common Stock Beg 101,000 10,000(T1) 13,000 Beg 100.000 Beg Beg 0 Bal 119,440 0- Bal 320 Retained 120 Accounts Receivable 230 Interest Payable Eamings 530 Rent Expense 240 Unearmed 140 Supply Inventory 330 Dividends 540 Supply Expense Kevenue 150 Prepaid Rent 550 Wage Expense 171 Accumulated 170 PPE Depreciation - PPE 410 Revenue 560 Interest Expense Beg 18,000 (T1)10,000 Nancy Nanny Child Care ADJUSTED TRIAL BALANCE-Year 2 Debit S 119,440 2,000 5,000 28,000 0 Account Credit 110 120 140 170 Property, plant, and equipment Cash Accounts receivable Supply inventory Accumulated depreciation PPE Unearned revenue Common stock S10,900 6,000 100,000 26.270 240 310 320 Retained earnings (Beginning,) 330 410 520 530 540 Supply expense 550 560 Dividends Revenue Depreciation expense Rent expense 20,000 180,000 7,600 15,000 46,000 80,000 130 $323,170 Wage expense Interest expense Total S323,170 Nancy Nanny Child Care INCOME STATEMENT Year 2 Revenue Operating expenses Total operating expense Operating income 148,600 Non-operating expenses Net income Nancy Nanny Child Care STATEMENT OF STOCKHOLDERS' EQUITY Year 2 Total SEquity Common Retained Stock Earmings Balance, January 1, Year 2 Stock issued Net income Dividends Balance, December 31, Year 2 Nancy Nanny Child Care BALANCE SHEET - Year 2 ASSETS Total assets LIABILITIES STOCKHOLDERS EQUITY Total liabilities & stockholders' equity S 143,540 Nancy Nanny Child Care STATEMENT OF CASH FLOWS Year 2 CASH FROM OPERATING ACTIVITIES Cash from customers Cash paid for supplies Wages paid Interest paid Net cash from operating activities CASH FROM INVESTING ACTIVITIES Cash paid for property, plant, and equipment CASH FROM FINANCING ACTIVITIES Paid note payable (1,560) S 61,440 Dividends paid Net cash used for financing activities Net change in cash Beginning cash balance Ending cash balance 18,440 Nancy Nanny Child Care GENERAL JOURNAL Year 2 Date Accounts Debit Credit CJE #1 Close all revenue and gain accounts to income summary. Dec 31 CJE #2 Close all expense and loss accounts to income summary. Dec 3 Income Summary 148,730 CJE #3 Close the income summary account to retained earnings Dec 31 Income Summary 31,270 CE #4 Close the dividends account to retained earnings Dec 31 Nancy Nanny Child Care-POST-CLOSING TRIAL BALANCE Year 2 0 Account Debit Credit 110 120 140 Supply inventory 170 Cash Accounts receivable Property, plant, and equipment Accumulated depreciation PPE Unearned revenue Common stock Retained earnings Total 240 310 320 S 154,440