Jasmine Worthy started a haircutting business called Expressions. The following events occurred during its first month. Required

Question:

Jasmine Worthy started a haircutting business called Expressions.

The following events occurred during its first month.

Dec. 1 Worthy invested $3,000 cash and $15,000 of equipment in Expressions in exchange for common stock.

31 31 Expressions paid $400 cash toward the account payable from December 4. Expressions paid a $900 cash

Required
1. Prepare general journal entries for the transactions. Account numbers are taken from the Chart of Accounts near the end of the text.
2. Post the journal entries from part 1 to ledger accounts.
3. Prepare a trial balance as of December 31.
4. Prepare an income statement for December.
5. Prepare a statement of retained earnings for December.
6. Prepare a balance sheet as of December 31.
7. Determine the debt ratio as of December 31.
8. In the coming months, Expressions will have new business transactions. Identify which accounts are debited and which are credited for the following transactions.

a. Purchase supplies with cash.

b. Purchase supplies on credit.

c. Pay cash for future insurance coverage.

d. Receive cash for services to be provided in the future.

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