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 $$39,000$ cash as an owner investment in exchange for common stock.December $2$Pays $$8,280$ cash for equipment.December $3$Pays $$4,740$ cash $($insurance premium$)$ for a $12-$month insurance policy. Coverage began on December $1.$December $4$Pays $$1,380$ cash for December rent expense.December $7$Provides all$-$day training services for a large group and immediately collects $$2,050$ cash.December $8$Pays $$295$ cash in wages for part$-$time help.December $9$Provides training services for $$2,780$ and rents training equipment for $$790.$ The customer is billed $$3,570$ for these services.December $19$Receives $$3,570$ cash from the customer billed on Dec. $9.$December $20$Purchases $$2,190$ of supplies on credit from a supplier.December $23$Receives $$1,980$ cash in advance of providing a $4-$week training service to a customer.December $29$Pays $$1,395$ cash as a partial payment toward the accounts payable of Dec. $20.$December $30$Distributed a $$595$ cash dividend to the owner.

Information for month$-$end adjustments follows:

December $31$One month of the $12-$month, $$4,740$ insurance policy is expired by December $31.$ This leaves $$4,345$ not yet expired.December $31$A physical count of supplies on December $31$ shows that only $$1,295$ of supplies remain of the $$2,190$ supplies purchased.December $31$The $$8,280$ of equipment purchased at the beginning of December has a useful life of $5$ years and will be worth nothing at the end of $5$ years $(60$ months$).$ The business uses straight$-$line depreciation to allocate the $$8,280$ 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 $$1,980$ 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 $$695$ are owed to a part$-$time employee for work done over the past $3$ weeks. Those wages are not yet paid or recorded. December $31$The business agreed to provide $6$ weeks of training services to a customer for a fee of $$4,770,$ or $$795$ per week. The customer agrees to pay the full $$4,770$ 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 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 Retained Earnings tab $-$ The unadjusted, adjusted or post$-$closing balances will appear for each account,

based on your selection.

Balance Sheet taby $-$ 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 $-$ Use the drop$-$downs to indicate whether each account is included on the post$-$closing trial balance.

Post$-$closing

Income Statement Revenues Services revenue $ $0$ Rental revenue $ $7900$ Total revenues $ $790$ Expenses Rent expense $0$ Wages expense $695$ Insurance expense $0$ Supplies expense $0$ Depreciation expense $-$ Equipment $00$ Total expenses Net income $$95$

Post$-$closing

Included on Post$-$closing trial balance? Type of Account Post$-$closing Trial Balance Account Debit Credit Cash Yes Permanent $29,915$ Accounts receivable Yes Permanent $1,590$ Supplies Yes Permanent $1,295$ Prepaid insurance Yes Permanent $4,345$ Equipment Yes Permanent $8,280$ Accumulated depreciation $-$ Equipment Yes Permanent $138$ Accounts payable Yes Permanent $795$ Wages payable Yes Permanent $695$ Unearned revenue Yes Permanent $1,485$ Common stock Yes Permanent $39,000$ Retained earnings Yes Permanent $3,217$ Dividends No Temporary Services revenue No Temporary Rental revenue No Temporary Depreciation expense$-$Equipment No Temporary Wages expense No Temporary Insurance expense No Temporary Rent expense No Temporary Supplies expense No Temporary Totals $45,425$ $ $45,330$

Journal entry worksheet

Close Income Summary account.

Note: Enter debits before credits.