The Accounting Cycle $-$ Problem Set ABC Company Ltd$.$

Summary of transactions during December:

Paid outstanding tax payables.

Paid outstanding trade creditors in the amount of $1500.$

Received a bank transfer for $3000$ from a customer for services rendered in October.

Purchase of $650$ of Equipment on credit.

Performed advertisement services for Customer $xYZ,$ for which we will receive $500$ in $14$

days.

Performed consulting services for the amount of $650,$ cash was immediately received.

Paid rent for office in the amount of $500$ in cash.

Purchase of office supplies for $500$ paid in cash.

We performed additional consulting work, $2000$ on credit.

Paid salaries to employees of $1000.$

At the end of the month Company repaid to the Bank credit tranche $1000$ and paid

interest charges $($interest rate as of $5\%$ p$.$a$.)$

The cost of office supplies inventory used during December is $500.$

Depreciation of equipment for December amounts to $250.$

Required:

a$)$ Prepare the opening journal entry on Dec. $1,2023.$

b$)$ Prepare the journal entries for the transactions $(1-13)$ for the month of December and post

them to the T$-$accounts, opening additional T$-$accounts for accounts as needed.

c$)$ Prepare the closing entries for the temporary accounts and the Income Statement.

d$)$ Prepare the Balance Sheet as at Dec. $31,2023.$ No closing entries are required for

permanent accounts.