Prepare journal entries to record the December transactions General Journal Date Description Debit Credit 1-Dec cash $
Question:
Prepare journal entries to record the December transactions
General Journal | |||
Date | Description | Debit | Credit |
1-Dec | cash | $ 6,000 | |
common stock | $ 6,000 | ||
1-Dec | prepaid insurance | $ 480 | |
cash | $ 480 | ||
1-Dec | prepaid equipment | $ 3,600 | |
cash | $ 3,600 | ||
5-Dec | supplies | $ 400 | |
account payable | $ 400 | ||
15-Dec | cash | $ 5,400 | |
service revenue | $ 5,400 | ||
16-Dec | account receivable | $ 2,500 | |
service revenue | $ 2,500 | ||
17-Dec | cash | $ 800 | |
deferred revenue | $ 800 | ||
22-Dec | account payable | $ 220 | |
cash | $ 220 | ||
23-Dec | cash | $ 1,500 | |
account receivable | $ 1,500 | ||
25-Dec | rent expense | $ 500 | |
cash | $ 500 | ||
28-Dec | salaries expense | $ 4,200 | |
cash | $ 4,200 | ||
29-Dec | dividends | $ 200 | |
cash | $ 200 | ||
30-Dec | land | $ 5,000 | |
note payable 3years | $ 5,000 | ||
31-Dec | insurance expense (11 month x $40) | $ 440 | |
prepaid insurance | 440 | ||
31-Dec | supplies expence | $ 90 | |
supplies | 90 | ||
31-Dec | depreciation expense | $ 60 | |
accumulated depreciation | 60 | ||
31-Dec | salaries expence | $ 450 | |
salaries payable | 450 |
Step 1: Post all of the adjusting entries to the T-accounts on the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted.
Step 2: Prepare the adjusted trial balance on the “Adjusted Trial Balance” tab.
Check point 1: Adjusted trial balance total debit/credit = $ 20,390
Provide the following amounts from the Adjusted Trial Balance:
1. Cash ________
2. Accounts Receivable ________
3. Supplies ________
4. Prepaid Insurance ________
5. Equipment ________
6. Land ________
7. Accumulated Depreciation________
8. Accounts Payable ________
9. Deferred Revenue ________
10. Salaries Payable ________
11. Notes Payable ________
12. Common Stock ________
13. Retained Earnings ________
Step 3: Prepare the Income Statement, Statement of Stockholder’s Equity and Classified Balance Sheet on the “Financial Statements” tab for the month ended December 31, 20XX. Provide the following amount from the Income Statement:
14. Service Revenue ________
15. Depreciation Expense ________
16. Salaries Expense ________
17. Supplies Expense ________
18. Rent Expense ________
19. Insurance Expense ________
20 Net Income ________
Provide the following account balances from the Balance Sheet:
21. Current Assets _______
22. Long-Term Assets ________
23. Current Liabilities ________
24. Long-Term Liabilities ________
25. Total Liabilities ________
26. Total Stockholder’s Equity ________
Provide the following account balance from the Statement of stockholders' Equity:
27. Dividends ________
Step 4: Record the closing entries on the “General Journal” tab.
Step 5: Post all of the closing entries to the T-accounts on the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted.
Step 6: Prepare the post closing trial balance for the month ended December 31, 20XX on the Post-Closing Trial Balance tab.
28. Provide the total of the debit column from the Post Closing Trial Balance ___________
29. Provide the balance of the Retained Earnings T-account after closing entries have been posted. __________
Check Point 2: Total Assets $ 14,570
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild