On Dec 1, 2017, Daniel Nica organized a computer service company called Smart Technology
Systems. Smart Techonology is organized as a sole proprietorship and will provide consulting services, computer
system installations, and custom program development. Smart Technology Systems has adopted the calendar year
for reporting, and expects to prepare the company's first set of financial statements as of
December 31, 2017. The initial chart of accounts for the accounting system includes these items:
Account Number	Account Name	Account Number	Account Name
101	Cash	301	John Maher, Capital
106	Accounts Receivable	302	John Maher, Withdrawals
126	Inventory-Fresh produce	403	Revenue
127	Inventory-Non-pershable foods	610	Cost of goods sold
128	Prepaid Insurance	623	Subcontractor Expense
131	Prepaid Rent	655	Advertising Expense
163	Office Equipment	676	Mileage Expense
167	Purchase	684	Repairs Expense, Computer
201	Accounts Payable	699	Charitable Donations Expense
Required
1. Prepare journal entries to record each of the following December transactions.
2. Post the December entries.
3. Close the purchase account to inventory and prepare the COGS schedule and Sales entries.
3. Prepare the adjustment entries.
3. Prepare a trial balance at Dec 31, 2017.
4. Prepare an income statement for the month ended
December 31, 2017, as well as a balance sheet at December 31, 2017.
Dec. 1	John Maher invested $52,000 cash and $5000 non-perishable foodsin the small business.
2	Paid three months of rent in advance; $6,000.
3	Purchased non-perishable foods on credit for $24,000 from Depot wholesalers.
5	Paid $6,000 cash for one year's premium on a property and liability insurance
	policy.
6	Purchased fresh produce on credit for $2,000 from Depot wholesalers.
7	Reimbursed Daniel Nica's business automobile expense for 1,000
	kilometres at $1.50 per kilometre.
8	Paid the non-perishable foods that purchased from the Depot Wholesalers
17	Paid $500 to repair equipment damaged when moving into the
	new office.
18	Purchased fresh produce on credit for $4,000 from Depot wholesalers.
19	Purchased non-perishable foods on credit for $6,000 from Depot wholesalers.
20	Paid $2,500 for an advertisement in the local newspaper.
29	Donated $200 to the Terry Fox Foundation in the company's name.
31	Paid subcontractor Leagh O'keefe for five days' work; $1,000
31	The total cash sales are $60,000 in December, 2017
	The Ending balacne of inventory is 12,000