Nancy Nanny opened a child-care facility on January 1, Year 1. Use the Chart of Accounts below to complete the requirements on the following pages for Nancy Nanny Child Care. NANCY NANNY CHILD CARE?Year 1 Q1 The following transactions occurred

Nancy Nanny opened a child-care facility on January 1, Year 1. Use the Chart of Accounts below to complete the requirements on the following pages for Nancy Nanny Child Care.

NANCY NANNY CHILD CARE?Year 1

Q1 The following transactions occurred during Year 1. the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits.

NANCY NANNY CHII D CARE??YEAR 1

Q2 At the end of Year 1. Nancy Nanny made the following adjusting journal entries. Record each adjusting entry in proper journal entry format below using debits and credits.

NANCY NANNY CHILD CARE?Year 1

Q3 Post the Transaction Journal Entries from Q1 and the Adjusting Journal Entries from Q2 to the General Ledger below.

Q4 Compute the ending balance for each account.

NANCY NANNY CHILD CARE??Year 1

Use the ending balances computed in the General Ledger to prepare the Adjusted Trial Balance below.

NANCY NANNY CHILD CARE??Year 1

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

NANCY NANNY CHILD CARE?Year 1

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.

NANCY NANNY CHILD CARE ??Year 1

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

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NANCY NANNY CHILD CARE CHART OF ACCOUNTS 110 Cash 120 Accounts receivable 130 Note receivable 135 Interest receivable 140 Supply inventory 150 Prepaid rent 170 171 Accumulated depreciation-PPE Property, plant, and equipment 210 Accounts payable 220 Notes payable 230 Interest payable 240 Unearned revenue 310 Common stock 320 330 Dividends 510 520 530 540 550 560 Retained earnings 410 Revenue 420 Interest revenue Cost of goods sold Depreciation expense Rent expense Supply expense Wage expense Interest expense NANCY NANNY CHILD CARE CHART OF ACCOUNTS 110 Cash 120 Accounts receivable 130 Note receivable 135 Interest receivable 140 Supply inventory 150 Prepaid rent 170 171 Accumulated depreciation-PPE Property, plant, and equipment 210 Accounts payable 220 Notes payable 230 Interest payable 240 Unearned revenue 310 Common stock 320 330 Dividends 510 520 530 540 550 560 Retained earnings 410 Revenue 420 Interest revenue Cost of goods sold Depreciation expense Rent expense Supply expense Wage expense Interest expense Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts Debit Credit TJE #1 On January 2, Nancy Nanny received $100,000 in cash from investors in exchange for shares of Nancy Nanny common stock. Jan 2 Cash 100,000 Common stock 100,000 TJE #2 On January 2, Nancy Nanny paid $30,000 for a two-year lease of the building. The prepaid rent account was used to record this entry. Jan 2 TJE #3 On February 1, Nancy Nanny purchased tables, chairs, cots, and other furniture for $18,000. $5,000 was paid in cash with the balance on a note payable due in one year bearing 12% annual interest. This furniture has an estimated useful life of five years and is depreciated monthly using the straight-line method with no expected residual value. Feb 1 TJE #4 On February 1, Nancy Nanny purchased supplies at a cost of $40,000. Paid cash. Feb 1 TJE #5 During Year 1, Nancy Nanny provided child-care services on account totaling $150,000. Year 1 TJE #6 During Year 1, collections from receivable customers totaled $146,000. Year 1 TJE #7 During Year 1, paid employees $70,000. Year 1 Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts Debit Credit TJE #1 On January 2, Nancy Nanny received $100,000 in cash from investors in exchange for shares of Nancy Nanny common stock. Jan 2 Cash 100,000 Common stock 100,000 TJE #2 On January 2, Nancy Nanny paid $30,000 for a two-year lease of the building. The prepaid rent account was used to record this entry. Jan 2 TJE #3 On February 1, Nancy Nanny purchased tables, chairs, cots, and other furniture for $18,000. $5,000 was paid in cash with the balance on a note payable due in one year bearing 12% annual interest. This furniture has an estimated useful life of five years and is depreciated monthly using the straight-line method with no expected residual value. Feb 1 TJE #4 On February 1, Nancy Nanny purchased supplies at a cost of $40,000. Paid cash. Feb 1 TJE #5 During Year 1, Nancy Nanny provided child-care services on account totaling $150,000. Year 1 TJE #6 During Year 1, collections from receivable customers totaled $146,000. Year 1 TJE #7 During Year 1, paid employees $70,000. Year 1 Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts AJE #1 Record rent expense for the year. (Refer to TJE #2.) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to TJE #3.) AJE #3 Record interest expense for the year. (Refer to TJE #3.) Debit Credit AJE #4 At the end of the first year, Nancy Nanny had $6,000 of supplies still on hand that had not been used. (Refer to TJE #4.) Nancy Nanny Child Care GENERAL JOURNAL-Year 1 Date Accounts AJE #1 Record rent expense for the year. (Refer to TJE #2.) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to TJE #3.) AJE #3 Record interest expense for the year. (Refer to TJE #3.) Debit Credit AJE #4 At the end of the first year, Nancy Nanny had $6,000 of supplies still on hand that had not been used. (Refer to TJE #4.) 110 Cash 120 Accounts Receivable 140 Supply Inventory 150 Prepaid Rent 170 PPE Nancy Nanny Child Care GENERAL LEDGER-Year 1 220 Notes Payable 230 Interest Payable 171 Accumulated Depreciation-PPE NANCY NANNY CHILD CARE-Year 1 310 Common Stock 320 Retained Earnings 330 Dividends Income Summary 410 Revenue 520 Depreciation Expense 530 Rent Expense 540 Supply Expense 550 Wage Expense 560 Interest Expense 110 Cash 120 Accounts Receivable 140 Supply Inventory 150 Prepaid Rent 170 PPE Nancy Nanny Child Care GENERAL LEDGER-Year 1 220 Notes Payable 230 Interest Payable 171 Accumulated Depreciation-PPE NANCY NANNY CHILD CARE-Year 1 310 Common Stock 320 Retained Earnings 330 Dividends Income Summary 410 Revenue 520 Depreciation Expense 530 Rent Expense 540 Supply Expense 550 Wage Expense 560 Interest Expense No. 110 120 140 150 170 171 220 230 310 410 520 530 540 550 560 Nancy Nanny Child Care ADJUSTED TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Notes payable Interest payable Common stock Revenue Depreciation expense Rent expense Supply expense Wage expense Interest expense Total Debit $ 101,000 $267,730 Credit No. 110 120 140 150 170 171 220 230 310 410 520 530 540 550 560 Nancy Nanny Child Care ADJUSTED TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Notes payable Interest payable Common stock Revenue Depreciation expense Rent expense Supply expense Wage expense Interest expense Total Debit $ 101,000 $267,730 Credit Revenue Operating expenses: Total operating expense Operating income Nonoperating expenses: Net income Nancy Nanny Child Care INCOME STATEMENT-Year 1 Balance, January 1, Year 1 Stock issued Net income Dividends Balance, December 31, Year 1 Nancy Nanny Child Care STATEMENT OF STOCKHOLDERS' EQUITY—Year 1 Common Stock $ $ -O- Retained Earnings $ -0- $ $ $ 122,300 26,270 Total SEquity -0- Revenue Operating expenses: Total operating expense Operating income Nonoperating expenses: Net income Nancy Nanny Child Care INCOME STATEMENT-Year 1 Balance, January 1, Year 1 Stock issued Net income Dividends Balance, December 31, Year 1 Nancy Nanny Child Care STATEMENT OF STOCKHOLDERS' EQUITY—Year 1 Common Stock $ $ -O- Retained Earnings $ -0- $ $ $ 122,300 26,270 Total SEquity -0- ASSETS Cash Property, plant, and equipment Accumulated depreciation-PPE Total assets LIABILITIES Nancy Nanny Child Care BALANCE SHEET-Year 1 Total liabilities STOCKHOLDERS' EQUITY Total stockholders' equity Total liabilities and stockholders' equity $ ( $ 101,000 $ 14,700 140,700 ASSETS Cash Property, plant, and equipment Accumulated depreciation-PPE Total assets LIABILITIES Nancy Nanny Child Care BALANCE SHEET-Year 1 Total liabilities STOCKHOLDERS' EQUITY Total stockholders' equity Total liabilities and stockholders' equity $ ( $ 101,000 $ 14,700 140,700 Nancy Nanny Child Care STATEMENT OF CASH FLOWS-Year 1 CASH FROM OPERATING ACTIVITIES Cash from customers Rent paid Cash paid for supplies Wages paid Net cash from operating activities CASH FROM INVESTING ACTIVITIES Cash paid for property, plant, and equipment CASH FROM FINANCING ACTIVITIES Cash from issuing common stock Net change in cash Beginning cash balance Ending cash balance $ 146,000 ( ( ( ) -) $ tA ( $ + 14 -0- $ 101,000 Nancy Nanny Child Care STATEMENT OF CASH FLOWS-Year 1 CASH FROM OPERATING ACTIVITIES Cash from customers Rent paid Cash paid for supplies Wages paid Net cash from operating activities CASH FROM INVESTING ACTIVITIES Cash paid for property, plant, and equipment CASH FROM FINANCING ACTIVITIES Cash from issuing common stock Net change in cash Beginning cash balance Ending cash balance $ 146,000 ( ( ( ) -) $ tA ( $ + 14 -0- $ 101,000 Nancy Nanny Child Care-GENERAL JOURNAL-Year 1 Debit Date Accounts CJE #1 Close all revenue and gain accounts to income summary. Dec 31 Income summary CJE #2 Close all expense and loss accounts to income summary. Income summary CJE #3 Close the income summary account to retained earnings. CJE #4 Close the dividends account to retained earnings. Retained earnings Dividends 123,730 -0- Credit 150,000 -0- Nancy Nanny Child Care-GENERAL JOURNAL-Year 1 Debit Date Accounts CJE #1 Close all revenue and gain accounts to income summary. Dec 31 Income summary CJE #2 Close all expense and loss accounts to income summary. Income summary CJE #3 Close the income summary account to retained earnings. CJE #4 Close the dividends account to retained earnings. Retained earnings Dividends 123,730 -0- Credit 150,000 -0- No. 110 120 140 150 170 171 220 230 310 320 Nancy Nanny Child Care-POST-CLOSING TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Note payable Interest payable Common stock Retained earnings Total Debit $ 101,000 $ 144,000 Credit No. 110 120 140 150 170 171 220 230 310 320 Nancy Nanny Child Care-POST-CLOSING TRIAL BALANCE-Year 1 Account Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation-PPE Note payable Interest payable Common stock Retained earnings Total Debit $ 101,000 $ 144,000 Credit

• Expert Answer

Accounting cycle Accounting cycle is the collective process of identifying and recording the transactions in journals and posting them in respective ledger accounts It also includes preparing unadjust View the full answer