Exercise IV Accounting Cycle The Accounting Cycle - Problem Set ABC Company Ltd. Balance Sheet on Nov. 30, 2020 Equities Paid-in Capital Retained Earnings Assets Equipment Land Office Supplies Inventory Accounts Receivable Cash, Bank Total assets 2 500 1 000 1 200 1 400 3 500 9 600 Loan Payable Tax payable Accounts payable Total equities Summary of transactions during December: sh-Purchase of 1,500 of Office Supplies Inve 3 000 immediately. 6. Paid rent for office in the amount of 500 cash.. 2 400 1 000 800 2. Performed consulting services, for which we received 1,000 cash immediately. 3. Received an invoice for a series of advertisements, 200, that appeared in the 2 400 9 600 local news during December and will be paid in January. 4. Performed additional consulting work, 1 900 on credit. 5. Performed advertisement services, for which we received 1,000 cash 10. Paid outstanding tax in the amount 800 11. Paid trade creditors 1,300. 7. Received money from the customer for services rendered in October in the amount of 1 100. 8. Paid salaries to employees of 700 for December. 9. Received an invoice for external services of 400 for December to be paid with 60 credit term 12. The cost of office supplies used during December is 1,900. 13. At the end of the month Company repaid to the Bank credit tranche 200 and paid interest charges (interest rate as of 9 % p.a.) 14. Depreciation of equipment for December amounts to 250. Required: a) Prepare the opening journal entry on Dec. 1, 2020. b) Prepare the journal entries for the transactions (1. - 14) for the month of December and post them to the T-accounts, opening additional T-accounts for accounts as needed. Cross-reference the entries using the numbers of the transactions above. c) Prepare the closing entries for the temporary accounts and the Income Statement. d) Prepare the closing entries for the permanent accounts and the Balance Sheet as of Dec. 31, 2020. Ord

Exercise IV Accerinting Crais The Accounting Cycle - Problem Set Aac Company tid. Summany af transactients during Recenbert 1. Cabhalifhase ef clis 500 at Brficu Stpplics Lnventory. 2. Forformed comating services, for whico we received e 1,000 eagh inmediately. 5. Pefortrid advertisment semicest fer which we recelved 61.000 cash inmediately. 6. Paidifere foc office in the amount of 500 cash. 7. Recelved thoocy Him thu custooter fociserices rendencd incocoberint the dencent of ic 1 ioa 0. Pakd salatus to entpicyats at c.300 tor Deciemiver. 60 atedit terin 10. Pala catetanding tar in the nmount 6800 11. Paid trade cred for c 1,209 22. The cost of affice saipplies vved ouring Decest ber is t1,1,200 interest chatyyt (interest rose ath of 9 kis. p.) 14, Depcociatlan of eedipenpent fee Deqctiber amourists ts c 250 . Recuired: a) Pregare the ggening journal entry on Dec, 1, 7020 b) Prephre the journg ereries fer the transedions (1. - 14) foe the month of Deceraber-and post then to the T-tccovets, ugening idditingl T-acceutits for transations ahove c) Prepere the clasing entries for the femperaty accounts and the lncome Staterient iof Dier 31,2020 . Exercise IV Accerinting Crais The Accounting Cycle - Problem Set Aac Company tid. Summany af transactients during Recenbert 1. Cabhalifhase ef clis 500 at Brficu Stpplics Lnventory. 2. Forformed comating services, for whico we received e 1,000 eagh inmediately. 5. Pefortrid advertisment semicest fer which we recelved 61.000 cash inmediately. 6. Paidifere foc office in the amount of 500 cash. 7. Recelved thoocy Him thu custooter fociserices rendencd incocoberint the dencent of ic 1 ioa 0. Pakd salatus to entpicyats at c.300 tor Deciemiver. 60 atedit terin 10. Pala catetanding tar in the nmount 6800 11. Paid trade cred for c 1,209 22. The cost of affice saipplies vved ouring Decest ber is t1,1,200 interest chatyyt (interest rose ath of 9 kis. p.) 14, Depcociatlan of eedipenpent fee Deqctiber amourists ts c 250 . Recuired: a) Pregare the ggening journal entry on Dec, 1, 7020 b) Prephre the journg ereries fer the transedions (1. - 14) foe the month of Deceraber-and post then to the T-tccovets, ugening idditingl T-acceutits for transations ahove c) Prepere the clasing entries for the femperaty accounts and the lncome Staterient iof Dier 31,2020