1.Journal Entries: In March 2016, the following activities happened in Luke Company, please post journal entries in the journal. No transaction description was needed.

3/1 Shareholders invested $12,500 cash in the business by purchasing common stock.

3/5 Purchased supplies on account, $6,250

3/22 Paid operating expenses, $5,500

3/25 Billed clients on account for fees earned, $7,440

A. Using the following accounts to generate journal entries:

Cash, Accounts Receivable, Supplies

Accounts payable; Common Stock; Dividends,

Professional Fees, Operating expenses

Journal

Date	Items	Debit	Credit
3/1/16

B. Post journal entries on question I to T-accounts, then calculate the month end balance for each account. Note: each T-Account ledger has one ending balance, either at debit side or credit side.

Cash			Accounts Receivable
Bal			Bal
Supplies			Accounts Payable
Bal			Bal
Common Stock			Fee Earned
Bal			Bal
Operating Expense
Bal

C. Poste the ending balance in T-account ledger to the following unadjusted trial balance

Unadjusted Trial Balance
March 31, 2016
		Dr.	Cr.
Cash
Accounts Receivable
Supplies
Accounts Payable
Common Stock
Fee Earned
Operating Expense
Total		$	$

2. On December 31, 2016, the accounts in the ledger of The Virtual Entertainment Co. are listed below. All accounts have normal balances. At the beginning of the year, retained earning balance is $9,600.

Accounts payable $1,500 Fees earned $3,600

Accounts receivable 1, 800 Insurance expenses 1,300

Prepaid Insurance 2,000 Land 3,000

Cash 3,200 Wages expense 1,400

Dividends 1,200 Common stock 8,800

A. Create income statement for the year ended Dec 31, 2016.

B.Retained Earnings Statement for the year ended Dec 31, 2016.

C.Balance Sheet as of Dec 31, 2016