PLEASE NOTE: DO NOT Skip STEP $1$ or your case study will be wrong!!!

Step $2$: Journalize the transactions on page $35($May $1-$ May $30)$ in the General Journal $($pages $37$ and $39)$

Remember to SKIP a row between each journal entry.

DO NOT create an entry for the May $25$th transaction $($It does not provide enough information to complete an entry$).$

Step $3$: Post each journal entry to the General Ledger Accounts $($pages $45,47,$ and $49)$

Step $4$: Prepare the Unadjusted Trial Balance $($page $55)$

Make sure you use the balances in the General Ledger Accounts to get the account totals for the Unadjusted Trial

Balance

Don't forget to calculate the column totals $($add up the debit and credit columns $($they should equal$/$have the same total$).$

PLEASE NOTE: THE UNADJUSTED TRIAL BALANCE MUST BE COMPLETED BEFORE THE ADJUSTING ENTRIES ARE

RECORDED OR THE BALANCES WILL BE WRONG!!!

Step $5$: Journalize each Adjusting Entry $($May $31$st transactions$)$ in the General Journal titled "Adjusting Entries"

$($page $41)$

The adjustments are for May only $($for example, the prepaid insurance adjustment is for one month$/$May$)$

For the depreciation adjusting entry, the monthly depreciation amount is $$100.$ You will learn how to calculate this in

Chapter $9.$

To complete the tax adjusting entry you need to know your "Income from Operations" which is $$14,850.$ The tax amoun

is calculated as follows: Income from Operations $x$ the Tax Rate $($ $$14,85040\%=$$$5,940$ Therefore, the tax amoun

you need to accrue is $$5,940$

Step $6$: Post the Adjusting Entries to the General Ledger Accounts $($pages $45,47,$ and $49)$

Step $7$: Prepare the Adjusted Trial Balance $($page $57)$

Make sure you use the balances in the General Ledger Accounts AFTER the adjusting entries have been posted to get the

balances for the ATB

o$.$ Don't forget to calculate the column totals $($add up the debit and credit columns $($they should equal$/$have the same total$).$