QUESTION 1

1.

Step 1:

Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate:

Cash

Land

Notes Payable

Depreciation Expense

Accounts Receivable

Accumulated Depreciation

Common Stock

Salaries Expense

Supplies

Accounts Payable

Retained Earnings

Supplies Expense

Prepaid Insurance

Deferred Revenue

Dividends

Rent Expense

Equipment

Salaries Payable

Service Revenue

Insurance Expense

1-Dec

Issue common stock in exchange for cash of $8,000.

1-Dec

Paid the premium in advance on a one-year insurance policy, $1,200.

1-Dec

Purchased Equipment for $4,800 cash.

5-Dec

Purchased office supplies from XYZ Company on account, $500.

15-Dec

Provided services to customers for $8,200cash.

16-Dec

Provided services to customer ABC Inc. on account, $6,700.

17-Dec

Received $2,200 cash in advance fromacustomer for services to be provided in January.

22-Dec

Paid$240 to XYZ company for theDec 5 purchase on account.

23-Dec

Received$2,900 cash from customer, ABC Inc., on account.

25-Dec

Paid the rent for the current month, $1,200.

28-Dec

Paid salaries to employees for work performed from December 1 through December 28,$4,760.

29-Dec

Declared and paid dividends to stockholders $350.

30-Dec

Purchasedland by signing3 yearnote payable for $10,000.

Step 2:

Post all of the December transactions from the "General Journal" tab to the T-accounts under the "T-Accounts" tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts.

Step 3:

Compute the balance for each T-account after all of the entries have been posted.

Step 4:

Prepare the unadjusted trial balance on the "Unadjusted Trial Balance" tab.

1

Provide the total of the credit column from the Unadjusted Trial Balance

Step 5:

Record the December adjusting entries on the "General Journal" tab.

31-Dec

One month's insurance has expired $100.

31-Dec

The remaining inventory of unused office supplies is $90.

31-Dec

The estimated depreciation on equipment is$80.

31-Dec

Salaries incurred from December 29 to December 31 but not yet paid or recorded total $510.

Step 6:

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 7:

Prepare the adjusted trial balance on the "Adjusted Trial Balance" tab.

Check point 1:

Adjusted trial balance total debit/credit =

$35,950

Provide the following amounts from the Adjusted Trial Balance:(Be sure to enter all numbers as positive and no answer should be left blank.)

2

Cash

3

Accounts Receivable

4

Supplies

5

Prepaid Insurance

6

Equipment

7

Land

8

Accumulated Depreciation

9

Accounts Payable

10

Deferred Revenue

11

Salaries Payable

12

Notes Payable

13

Common Stock

14

Retained Earnings

Step 8:

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: (Be sure to enter all numbers as positive and no answer should be left blank.)

15

Service Revenue

16

Depreciation Expense

17

Salaries Expense

18

Supplies Expense

19

Rent Expense

20

Insurance Expense

21

Net Income

Provide the following account balances from the Balance Sheet: (Be sure to enter all numbers as positive and no answer should be left blank.)

22

Current Assets

23

Long-TermAssets

24

Current Liabilities

25

Long-Term Liabilites

26

TotalLiabilities

27

Total Stockholder's Equity

Provide the following account balance from the Statement of stockholders' Equity: (Be sure to enter all numbers as positive and no answer should be left blank.)

28

Dividends

Step 9:

Record the closing entries on the "General Journal" tab.

Step 10:

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 11:

Prepare the post closing trial balance for the month ended December 31, 20XX on the Post-Closing Trial Balance tab.

29

Provide the total of the debit column from the Post Closing Trial Balance

28,540

30

Provide the balance of the Retained Earnings T-account after closing entries have been posted.

7,410

Check Point 2: Total Assets

$28,460

QUESTION 2

1.31Does the ending balance of the Retained Earnings t-account agree with the balance

of Retained Earnings on the Balance Sheet?