5/24 Version 5.1 ACCT 2021 - CHAPTER 3 - EXERCISE Instructions a) Use the T-Accounts to record the transactions below for Dixie Incorporated in its first year of business HINT: Now that we are recording entries on the account level. The Retained Earnings account should not be impacted as part of these entries. The Retained Earnings balance will be impacted during the closing process. b) As you complete each T-account entry, prepare the Journal Entries using correct journal format. c) After completing your entries, calculate an account balance for each account and prepare a Trial Balance. d) Return to the T-accounts to record the Closing Entries for the company and then prepare a Post-Closing Trial Balance (form included later in exercise). e) Use the post-closing balances to prepare a set of Financial Statements for the company. Provided services to customers for cash, $4,000/ Purchased a 1 year insurance policy- $1,800 1) 2) 3) 4) Acquired cash of $6,000 by issuing common stock. Purchased office supplies on account, $700. stock. 5) 6) 7) Paid cash to purchase Equipment- Cost: $1,600. Provided $1,900 of services on account. Collected $1,200 cash in advance on a contract to provide future services. 8) Paid $300 of the Accounts Payable balance, 9) Paid $1,400 cash for employee salaries. 10) Collected $1,300 cash from Accounts Receivable 11) Paid $400 in cash dividends to shareholders. 12) $375 of the Prepaid Insurance has expired. 13) Record depreciation on the Equipment- $450. 14) $650 of salaries are owed to employees at the end of the period. 15) Earned $500 of the contract in #7.