Q1. The following transactions occurred during Year 1, the first year of business, for Nancy Nanny Child Care. Record each transaction in proper journal entry format below using debits and credits.

Q2. At the end of Year1, Nancy Nanny made the following adjusting journal entries. Record each adjusting entry in proper journal entry format below using debits and credits.

Q3. Post the Transaction Journal Entries from Q1 and the Adjusting Journal Entries from Q2 to the General Ledger below.
In Question 1

In Question 2

Q4. Compute the ending balance for each account.

Q5. Use the ending balances computed in the General Ledger to prepare the Adjusted Trial Balance below.

Q6. Use amounts from the Adjusted Trial Balance to prepare the Income Statement and the Statement of Stockholders€™ Equity. Use the forms provided below.

Q7. Use amounts from the General Ledger, Adjusted Trial Balance, and the Statement of Stockholders€™ Equity to prepare the Balance Sheet and the Statement of Cash Flows. Use the forms provided below.

Q8. Use amounts from the Adjusted Trial Balance to prepare Closing Journal Entries and the Post-Closing Trial Balance. Use the forms provided below.

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Nancy Nanny Child Care GENERAL JOURNAL Year l Credit Date TIE #1 On January 2. Nancy Nanny received $100,000 in cash from investors in exchange for shares of Nancy Nanny common stock. Accounts Debit Jan 2 Cash 100,000 Common stock 100,000 TIE #2 On January 2: Nancy Nanny paid $30,000 for a two-year lease of the building The prepaid rent account was used to record this entry an TIE #3 On February 1,Nancy Nanny purchased tables, chairs, cots, and other furniture for $18,000. S5,000 was paid in cash with the balance on a note payable due in one year bearing 12% annual interest. This furniture has an estimated useful life of 5 years and is depreciated monthly using the straight-line method with no expected residual value Feb 1 _ TIE #4 On February 1, Nancy Nanny purchased supplies at a cost of $40,000, paid cash Feb 1 _ TIE #5 During Year 1: Nancy Nanny provided child-care services on account totaling $150,000 Year TTE #6 During Year 1, collections from receivable customers totaled $146,000 Year 1 TIE #7 During Year 1, paid employees $70,000 Year Nancy Nanny Child Care GENERAL JOURNAL -Year 1 Date Accounts Debit Credit AJE #1 Record rent expense for the year. (Refer to TIE #2) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to TIE #3) AJE #3 Record interest expense for the year. (Refer to TIE #3) AJE #4 At the end of the first year, Nancy Nanny had $6,000 of supplies still on hand that had not been used. (Refer to TTE #4.) Nancy Nanny Child Care GENERAL JOURNAL Year l Credit Date TIE #1 On January 2. Nancy Nanny received $100,000 in cash from investors in exchange for shares of Nancy Nanny common stock. Accounts Debit Jan 2 Cash 100,000 Common stock 100,000 TIE #2 On January 2: Nancy Nanny paid $30,000 for a two-year lease of the building The prepaid rent account was used to record this entry an TIE #3 On February 1,Nancy Nanny purchased tables, chairs, cots, and other furniture for $18,000. S5,000 was paid in cash with the balance on a note payable due in one year bearing 12% annual interest. This furniture has an estimated useful life of 5 years and is depreciated monthly using the straight-line method with no expected residual value Feb 1 _ TIE #4 On February 1, Nancy Nanny purchased supplies at a cost of $40,000, paid cash Feb 1 _ TIE #5 During Year 1: Nancy Nanny provided child-care services on account totaling $150,000 Year TTE #6 During Year 1, collections from receivable customers totaled $146,000 Year 1 TIE #7 During Year 1, paid employees $70,000 Year Nancy Nanny Child Care GENERAL JOURNAL -Year 1 Date Accounts Debit Credit AJE #1 Record rent expense for the year. (Refer to TIE #2) Dec 31 AJE #2 Record depreciation expense for the year. (Refer to TIE #3) AJE #3 Record interest expense for the year. (Refer to TIE #3) AJE #4 At the end of the first year, Nancy Nanny had $6,000 of supplies still on hand that had not been used. (Refer to TTE #4.) Nancy Nanny Child Care GENERAL LEDGER Year1 310 Common 520 Depreciation 110 Cash 220 Notes Payable Stock Expense 320 Retained 120 Accounts Receivable 230 Interest Payable Earnings 530 Rent Expense 140 Supply Inventory 330 Dividends 540 Supply Expense 150 Prepaid Rent 550 Wage Expense 171 Accumulated 170 PPE Depreciation PPE 410 Revenue 560 Interest Expense Nancy Nanny Child Care ADJUSTED TRIAL BALANCE- Year l 0 Account Debit Credit 110 120 140 150 170 Cash Accounts receivable Supply inventory Prepaid rent Property, plant, and equipment Accumulated depreciation - PPE S101,000 220 Notes payable 310 410 520 530 540 550 Wage expense 560 Interest payable Common stock Revenue Depreciation expense Rent expense Supply expense Interest expense Total $267.730 Nancy Nanny Child Care INCOME STATEMENT Year l Revenue Operating expenses Operating income Non-operating expenses: 27,700 Net income S 26,270 Nancy Nanny Child Care STATEMENT OF STOCKHOLDERS' EQUITY -Year l Commorn Retained Stock Eamings S-0- Total SEquity S-0 S-0- Balance, January 1, Year 1 Stock issued Net income Dividends Balance, December 31, Year 1 Nancy Nanny Child Care BALANCE SHEET - Year l ASSETS Cash S 101,000 Property, plant, and equipment Accumulated depreciation -PPE Total assets LIABILITIES 14,700 140,700 Total liabilities STOCKHOLDERS EQUITY Total stockholders' equity Total liabilities and stockholders' equity Nancy Nanny Child Care STATEMENT OF CASH FLOWS- Year 1 CASH FROM OPERATING ACTIVITIES Cash from customers Rent paid Cash paid for supplies Wages paid Net cash from operating activities CASH FROMINVESTING ACTIVITIES Cash paid for property CASH FROM FINANCING ACTIVITIES Cash from issuing common stock Net change in cash Beginning cash balance Ending cash balance S 146,000 , plant, and equipment Nancy Nanny Child Care- GENERAL JOURNAL- Year l Debit Date Accounts CIE #1 Close all revenue and gain accounts to income summary Credit Income summary 150,000 CE #2 Close all expense and loss accounts to income summary Income summary 123,730 CIE #3 Close the income summary account to retained earnings CJE #4 Close the dividends account to retained earnings Retained eamings Dividends Nancy Nanny Child Care - Post-Closing TRIAL BALANCE - Year l No. 110 Cash 120 Accounts receivable 140 Supply inventory 150 170 Property, plant, and equipment Account Debit Credit S 101,000 Prepaid rent Accumulated depreciation - -PPE 220 Note payable 230 Interest payable 310 Common stock 320 Retained earnings Total S 144,000