25 Comprehensive Problem (Algo): Applying all steps in the cycle A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $30,000 cash as an owner investment. December 2 Pays $7,200 cash for equipment. December 3 Pays $4,200 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1. December 4 Pays $1,200 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $1,600 cash. December 8 Pays $250 cash in wages for part-time help. December 9 Provides training services for $2,600 and rents training equipment for $700. The customer is billed $3,300 for these services. December 19 Receives $3,300 cash from the customer billed on Dec. 9. December 20 Purchases $2,100 of supplies on credit from a supplier. December 23 Receives $1,800 cash in advance of providing a 4-week training service to a customer. December 29 Pays $1,350 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Withdrawal of $550 cash by the owner for personal use. Information for month-end adjustments follows: December 31 One month of the 12-month, $4,200 insurance policy is expired by December 31. This leaves $3,850 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,250 of supplies remain of the $2,100 supplies purchased. December 31 The $7,200 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate. the $7,200 net cost over 60 months. On December 31, 1 month of depreciation must be recorded. December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,800 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded. December 31 On December 31, wages of $650 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded. December 31 The business agreed to provide 6 weeks of training services to a customer for a fee of $4,500, or $750 per < Prev 2 of 2 Next > Information for month-end adjustments follows: December 31 One month of the 12-month, $4,200 insurance policy is expired by December 31. This leaves $3,850 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,250 of supplies remain of the $2,100 supplies purchased. December 31 The $7,200 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $7,200 net cost over 60 months. On December 31, 1 month of depreciation must be recorded. December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,800 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded. December 31 On December 31, wages of $650 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded. December 31 The business agreed to provide 6 weeks of training services to a customer for a fee of $4,500, or $750 per week. The customer agrees to pay the full $4,500 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided. Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Post Closing General Journal tab - Prepare journal entries for the first month of operations. Prepare any necessary adjusting and closing entries for the current month. General Ledger tab Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances. Trial Balance tab- You may view the unadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs. Income Statement tab- Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection. Statement of Owner's Equity tab - The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.. Balance Sheet tab- Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection. Post-Closing tab-Lise the dron-downs to indicate whether each account is included on the nost-closing trial balance. Check my w