2018 NOTE: These are for your information only, you do not need to do anything with these entries. PAGE1 POST REF DATE ACCOUNT DEBIT CREDIT 2018 101 163 167 301 45,000 20,000 8,000 Oct 1 Cash Office Equipment Computer Equipment C. Jamison, Capital 73,000 2,220 1 Prepaid Insurance 128 101 2.220 Cash 2 Prepaid Rent 131 101 3,300 Cash 3,300 126 201 9 Computer Supplies 2,545 Accounts Payable 2,545 16 Accounts Receivable 106 403 4,800 Computer Services Revenue 4,800 31 Wages Expense 623 101 875 Cash 875 Nov 2 Mleage Expense 676 101 320 Cash 320 5 Accounts Payable Cash 201 101 2,545 2,545 8 Cash 101 106 4,800 Accounts Receivable 4,800 14 Cash 101 403 4,633 Computer Services Revenue 4,633 23 Accounts Receivable 106 5.208 Computer Services Revenue 5,208 30 C. Jamison, Withdrawals 302 101 2,000 Cash 2,00 Page 4 of 15 Project Data: Callie Jamison owns and operates a consulting firm called Jamison Consulting. The business began operating in October 2018. Transactions for October and November 2018 have been recorded and posted. Jamison Consulting had the following transactions in December 2018 Dec 2 Provided $3,950 consulting services to Gomez Company on account. 3 Paid $1,025 cash to Hillside Mall for Jamison Consulting's share of mall advertising costs 4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products. 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co. that Jamison Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Jamison Consulting 20 Completed a project for Lyn Corporation and received $5,625 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. Reimbursed C. Jamison $193 for business automobile mileage. 31 C. Jamison withdrew $1,500 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in d Ae of December 31. the onlv emplovee of Jamison Consultina had not been paid for Trhe comp ufer oy ten, acquired or 0 on October 1.is expected to have afocur e. The computer system, acquired for $8,000 on October 1, is expected to have a four year life with no eahrege vahe The office equipment, acquired for $20,000 on October 1, is expected to have a five- year life with no salvage value. f. Required: 1. Journalize the December transactions for Jamison Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry-see the journal entries for October - November as a formatting example. 2. Post the December transactions to the appropriate accounts in the ledger. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $99,816 Consult your instructor if your trial balance does not balance before proceeding with the project 4. Journalize the adjusting entries to reflect items a through f above. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2018. Check figure: $101,816. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. 7. a. Prepare an income statement for the three months ended December 31, 2018. b. Prepare a statement of owners equity for the three months ended December 31, 2018 Prepare a balance sheet as of December 31, 2018. 8. 9. c. Journalize and post the necessary closing entries for Jamison Consulting. Prepare a post-closing trial balance as of December 31, 2018. GENERAL JOURNAL PAGE 3 DATE ACCOUNT DEBIT GREDIT REF 2018 Adjusting Entries (17 points) Dec Closing Entries(10 points) Page 6 of 15 Ledger for Requirements 2, 5, &10 Note: Ledger includes all entries from the first two months of operations for Jamison Consulting. Continue by posting the December transactions. 12 points Acct. No. 101 PR Debit Credit Balance 5,000 2,220 42,780 3,30039,480 875 38,605 320 38,285 2,545 35,740 Cash Date Oct Explanation JI J1 J1 JI JI JI JI JI JI 45,000 2 31 5 14 Nov 4,800 4,633 40,540 45,173 30 2,000 43,173 Acct. No. 106 4,800 5,208 Accounts Receivable PR DebitCredit Balance DateEX Oct. 16 Nov.8 Explanation 11 4,800, J1 4,800 23 15,208 JI Acct. No. 126 PR Debit Credit Balance 2,545 Computer Supplies Explanation Date Oct.9 J12,545 Acct. No. 128 PR Debit Credit Balance 2,220 Prepaid Insurance Explanation Date Oct. 1 2,220 JI Ledger (Continued) Page 7 of 15 Working Paper for Requirement 3 3 points Jamison Consulting Trial Balance December 31, 2018 DEBIT CREDIT Working Paper for Requirement 6 3 points Jamison Consulting Adjusted Trial Balance December 31, 2018 DEBIT CREDIT Working Papers for Requirements 7, 8&9 Jamison Consulting Income Statement (10 points) For Three Months Ended December 31, 2018 Jamison Consulting Statement of Owner's Equity (5 points) For Three Months Ended December 31,2018 Working Papers for Requirements 6,7 & 8 (continued) Jamison Consulting Balance Sheet (10 points) December 31 2018 Page 14 of 15 Working Papers for Requirement 10 Jamison Consulting Post-Closing Trial Balance December 31, 2018 DEBIT CRED