Sheryl Jones has been operating a part-time interior decorating business from her home. As of December 1, 2015, Sheryl expanded the business, Star Bookkeeping, and started operating it on a full-time basis.
Dec. 1. The opening balances at December 1 are cash, $18,600; accounts receivable, $6,300; supplies, $1,200; office equipment, $11,800; and Sheryl Jones, capital, $37,900. There were no liabilities.
1. Purchased additional office equipment on account from Office Depot Co., $5,000.
6. Received cash from clients on account, $4,900.
12. Paid Office Depot Co. for part of the debt incurred on December 1, $2,400.
14. Paid part-time receptionist for two weeks€™ salary, $850.
17. Recorded cash from cash clients for fees earned during the period December 1€“16, $4,800.
20. Recorded services provided on account for the period December 13€“20, $2,100.
27. Paid part-time receptionist for two weeks€™ salary, $850.
31. Paid electricity bill for December, $275.
31. Sheryl withdrew $3,500 for personal use.
Instructions
1. Journalize each transaction in a two-column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited.

2. Post the journal to a ledger of three-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of December, the following adjustment data were assembled. Analyze and use these data to complete instructions 5 and 6.
a. Supplies in the amount of $500 were used during the month.
b. Depreciation of office equipment needs to be estimated. The life of the equipment is seven years.
c. Accrued receptionist salary on December 31 is $170.
d. Unearned fees on December 31 are $1,500. They have been recorded in fees earned.
5. Journalize and post the adjusting entries.
6. Prepare an adjusted trial balance.
7. Prepare an income statement, a statement of owner€™s equity, and a balance sheet.
8. Prepare and post the closing entries. (Income Summary is account #3030 in the chart of accounts.) Indicate closed accounts by inserting a line in the balance column opposite the closing entry.
9. Prepare a post-closing trial balance.

1010 Cash 1020 Accounts Receivable 1040 Supplies 1080 Office Equipment 1090 Accumulated Depreciation 2010 Accounts Payable 2020 Salaries Payable 2030 Unearned Fees 3010 Sheryl Jones, Capital 3020 Sheryl Jones, Withdrawals 4010 Fees Earned 5010 Salaries Expense 5030 Supplies Expense 5040 Depreciation Expense 5090 Miscellaneous Expense