A dog training business began on December 1. The following transactions occurred during its first month....

Transcribed Image Text:

A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $38,000 cash as an owner investment. December 2 Pays $8,160 cash for equipment. December 3 Pays $4,680 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1. December 4 Pays $1,360 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $2,000 cash. December 8 Pays $290 cash in wages for part-time help. December 9 Provides training services for $2,760 and rents training equipment for $780. The customer is billed $3,540 for these services. December 19 Receives $3,540 cash from the customer billed on Dec. 9. December 20 Purchases $2,180 of supplies on credit from a supplier. December 23 Receives $1,960 cash in advance of providing a 4-week training service to a customer. December 29 Pays $1,390 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Withdrawal of $590 cash by the owner for personal use. Information for month-end adjustments follows: December 31 One month of the 12-month, $4,680 insurance policy is expired by December 31. This leaves $4,290 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,290 of supplies remain of the $2,180 supplies purchased. December 31 The $8,166 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 $8,160 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 $1,960 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 $690 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 $4,740, or $790 per week. The customer agrees to pay the full $4,740 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. General Requirement Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Post Closing 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. Adjusted Revenues Expenses Net income Income Statement For Month Ended December 31 $ 0 $ 0 0 0 0 0 0 0 0 S 0 Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Prepare the required journal entries, adjusting entries, and closing entries. Balance Sheet Post Closing View transaction list Journal entry worksheet < 1 14 15 16 17 18 19 22 Close revenue accounts. Hint: Prepare financial statements before recording closing entries. Note: Enter debits before credits. Date December 31 Account Title Debit Credit Record entry Clear entry View general journal A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $38,000 cash as an owner investment. December 2 Pays $8,160 cash for equipment. December 3 Pays $4,680 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1. December 4 Pays $1,360 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $2,000 cash. December 8 Pays $290 cash in wages for part-time help. December 9 Provides training services for $2,760 and rents training equipment for $780. The customer is billed $3,540 for these services. December 19 Receives $3,540 cash from the customer billed on Dec. 9. December 20 Purchases $2,180 of supplies on credit from a supplier. December 23 Receives $1,960 cash in advance of providing a 4-week training service to a customer. December 29 Pays $1,390 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Withdrawal of $590 cash by the owner for personal use. Information for month-end adjustments follows: December 31 One month of the 12-month, $4,680 insurance policy is expired by December 31. This leaves $4,290 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,290 of supplies remain of the $2,180 supplies purchased. December 31 The $8,166 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 $8,160 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 $1,960 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 $690 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 $4,740, or $790 per week. The customer agrees to pay the full $4,740 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. General Requirement Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Post Closing 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. Adjusted Revenues Expenses Net income Income Statement For Month Ended December 31 $ 0 $ 0 0 0 0 0 0 0 0 S 0 Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Prepare the required journal entries, adjusting entries, and closing entries. Balance Sheet Post Closing View transaction list Journal entry worksheet < 1 14 15 16 17 18 19 22 Close revenue accounts. Hint: Prepare financial statements before recording closing entries. Note: Enter debits before credits. Date December 31 Account Title Debit Credit Record entry Clear entry View general journal