For question $($d$),$ trail balance, ALL accounts shown must be used.Introductory Financial Accounting

Individual Assignment $1($Deadline: $19$ Oct $2024($Sat$))$

This assignment is to achieve the following Course Intended Learning Outcomes:

CILO$1$: illustrate the use of an accounting system as a system of information for decision making.

CILO$4$: capture economic events through the use of the complete accounting cycle, from analysing economic events to preparing financial statements.

Question

Liz started her own consulting firm, Liz Consulting Co on Dec $1,2023.$ During December, the following transactions were completed.

Dec $1$ Shareholders invested $$15,000$ cash in the business in exchange for ordinary shares.

$4$ Paid $$2,880$ cash on one$-$year insurance policy effective Dec $1.$

$5$ Purchased supplies for $$2,500$ on account.

$6$ Purchased equipment for $$12,000,$ paying $$7,000$ cash down payment and issued a $3$ month $6\%$ note payable for the remaining balance.

$10$ Received $$4,600$ cash from a customer, in advance for the consulting services to be performed later.

$12$ Billed other customers $$4,780$ for construction services performed, receiving $$1,000$ cash with the rest on account.

$15$ Paid $$3,000$ for employee salaries.

$21$ Collected from customers billed on Dec $12$ in full.

$24$ Billed customers $$4,000$ for construction services performed.

$27$ Paid $$1,000$ for Dec's rent expense.

$29$ Paid the amount owed for supplies purchased on $5$ Dec.

$31$ Declared dividend of $$400$ to be paid in January $2024.$

The chart of accounts for Liz Consulting Co contains the following accounts:

$\backslash$table$[[$Cash$,$Accounts Receivable,Supplies$],[$Prepaid Insurance,Equipment,Accounts Payable$],[$Notes Payable,$\backslash$table$[[$Unearned Service$],[$Revenue$]],$Salaries Payable$],[$Income Tax Payable,Interest Payable,Dividend Payable$],[\backslash$table$[[$Accumulated Depreciation $-],[$Equipment$]],$Share Capital$-$Ordinary,Service Revenue$],[$Salaries Expense,Supplies Expense,Depreciation Expense$],[$Insurance Expense,Utilities Expense,Interest Expense$],[$Income Tax Expense,Rent Expense,Dividends$]]$

Instructions

$($a$)$ Journalize the December transactions.

$($b$)$ Prepare T$-$ accounts post all the transactions in $($a$)$ and a trial balance at December $31.$

$($c$)$ Refer to the following information, journalize adjusting entries for the month of December $2023$:

$$1,000$ of supplies are counted as at December $31.$

Utilities expense incurred but not paid on Dec $31,2023,$ $$200.$

The insurance policy is for $1$ year.

$$1,600$ of the advance service fee received from the client has been earned as at the end of the month.

Salaries for Dec $2023$ not yet paid to employees totaled $$400.$

The equipment has a $10-$year life with no residual value.

Invoices representing $$1,100$ of services performed during the month have not been recorded as of Dec $31.$

Interest for the $3$ month notes payable is not yet recorded.

The company's CPA estimates that income taxes expense for December is $$900.$

$($d$)$ Prepare the adjusted trial balance at December $31,2023.$ The credit and debit balance should be $$36,505.$