On December 1, Bob Waldo began an auto repair shop, Waldo's Quality Automotive. The following transactions occurred

Question:

On December 1, Bob Waldo began an auto repair shop, Waldo's Quality Automotive.
The following transactions occurred during December:
Dec. 1 Waldo contributed $70,000 cash to the business in exchange for shares of common stock.
1 Purchased $12,000 of equipment paying cash.
1 Paid $1,750 for a five-month insurance policy starting on December 1.
9 Paid $20,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $2,800.
19 Borrowed $15,000 from the bank for business use. Waldo signed a note payable to the bank in the name of the corporation. The note is due in five years.
22 Paid $1,300 for advertising expenses.
26 Paid $900 on account.
28 The business received a bill for utilities to be paid in January, $280.
31 Revenues earned during the month included $16,000 cash and $3,600 on account.
31 Paid employees' salaries $3,800 and building rent $1,200. Record as a compound entry.
31 The business received $1,440 for auto screening services to be performed next month.
31 Paid cash dividends of $5,500 to stockholders.
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Equipment; Accumulated Depreciation-Equipment; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Common Stock; Retained Earnings; Dividends; Income Summary; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment.
Adjustment data:
a. Office Supplies used during the month, $1,800.
b. Depreciation for the month, $200.
c. One month insurance has expired.
d. Accrued Interest Expense, $75.
Requirements
1. Prepare the journal entries, and post to the T-accounts.
2. Prepare an unadjusted trial balance.
3. Complete the worksheet for the month ended December 31, 2018 (optional).
4. Prepare the adjusting entries, and post to the T-accounts.
5. Prepare an adjusted trial balance.
6. Prepare the income statement, the statement of retained earnings, and the classified in report form.
7. Prepare the closing entries, and post to the T-accounts.
8. Prepare a post-closing trial balance.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...