Lena Kuznetsova provides coaching and mentoring services to individuals and companies. She operates the business as a

Question:

Lena Kuznetsova provides coaching and mentoring services to individuals and companies. She operates the business as a proprietorship, under the name LVK Coaching Services, which has a December 31 year end. On November 30, 2017, the company's general ledger included the following accounts (all accounts have normal balances):

December transactions were as follows:
Dec. 1 Paid December rent on her office space, $525.
1 Purchased additional equipment with a manufacturer's suggested price of $3,270. After negotiations with the retailer, paid $1,270 cash and signed a note payable for $2,000.
4 Collected $1,880 from customers in payment of their accounts.
7 Paid the $308 monthly insurance premium.
8 Purchased $135 of supplies on account.
10 Paid $2,140 of the accounts payable from November.
12 Finished a coaching contract with a client and earned $765. The client had paid her in November.
20 Received $3,480 cash from clients for services provided in December.
21 Paid monthly charges for maintaining a website advertising her services, $115.
24 Withdrew $2,860 for personal use.
28 Billed clients $2,280 for coaching services provided in December. These clients will pay in January.
29 Received $560 cash advance from a client for a coaching contract that will start in January.
30 Paid part-time office assistant $655 cash.
31 Made a $170 payment on the note payable. Of this amount, $10 is interest and the remainder is a principal payment on the note payable.
Instructions
(a) Enter the November 30 balances in ledger accounts. Use T accounts.
(b) Journalize the December transactions.
(c) Post the December journal entries to the T accounts. Add new accounts if needed.
(d) Prepare a trial balance at December 31, 2017.
TAKING IT FURTHER
Comment on the company's cash balance. What concerns and suggestions do you have for the company to consider in January?