On December 1, Bob Wonder began an auto repair shop, Wonders Quality Automotive. The following transactions occurred

Question:

On December 1, Bob Wonder began an auto repair shop, Wonders Quality Automotive.
The following transactions occurred during December:
Dec. 1 Wonder contributed $55,000 cash to the business in exchange for shares of common stock.
1 Purchased $9,000 of equipment paying cash.
1 Paid $1,000 for a four-month insurance policy starting on December 1.
9 Paid $16,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $2,900.
19 Borrowed $30,000 from the bank for business use. Wonder signed a note payable to the bank in the name of the corporation. The note is due in five years.
22 Paid $1,200 for advertising expenses.
26 Paid $500 on account.
28 The business received a bill for utilities to be paid in January, $230.
31 Revenues earned during the month included $20,500 cash and $3,300 on account.
31 Paid employees' salaries $3,100 and building rent $1,000. Record as a compound entry.
31 The business received $1,050 for auto screening services to be performed next month.
31 Cash dividends of $3,500 were paid to stockholders.
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation—Equipment; Land; 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, $900.
b. Depreciation for the month, $150.
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, 2016. (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...