A dog training business began on December 1. The following transactions occurred during its first month.

December 1	Receives $20,000 cash as an owner investment in exchange for common stock.
December 2	Pays $6,000 cash for equipment.
December 3	Pays $3,600 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1.
December 4	Pays $1,000 cash for December rent expense.
December 7	Provides all-day training services for a large group and immediately collects $1,100 cash.
December 8	Pays $200 cash in wages for part-time help.
December 9	Provides training services for $2,400 and rents training equipment for $600. The customer is billed $3,000 for these services.
December 19	Receives $3,000 cash from the customer billed on Dec. 9.
December 20	Purchases $2,000 of supplies on credit from a supplier.
December 23	Receives $1,600 cash in advance of providing a 4-week training service to a customer.
December 29	Pays $1,300 cash as a partial payment toward the accounts payable of Dec. 20.
December 30	Distributed a $500 cash dividend to the owner.

Information for month-end adjustments follows:

December 31	One month of the 12-month, $3,600 insurance policy is expired by December 31. This leaves $3,300 not yet expired.
December 31	A physical count of supplies on December 31 shows that only $1,200 of supplies remain of the $2,000 supplies purchased.
December 31	The $6,000 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,000 net cost over 60 months. On December 31, 1 month of depreciation must be recorded.
December 31	The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,600 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded.
December 31	On December 31, wages of $600 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded.
December 31	The business agreed to provide 6 weeks of training services to a customer for a fee of $4,200, or $700 per week. The customer agrees to pay the full $4,200 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided.

1. requirements

General Journal tab -Prepare journal entries for the first month of operations. Prepare any necessary adjusting and closing entries for the current month.

General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

Trial Balance tab - You may view theunadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.

Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. Theunadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Statement ofRetained Earnings tab -Theunadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. Theunadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.

2. Prepare the required journal entries, adjusting entries, and closing entries.

No	Date	Account Title	Debit	Credit
1	December 01	Cashselected answer correct	20,000selected answer correct	not attempted
		Common stockselected answer correct	not attempted	20,000selected answer correct
2	December 02	Equipmentselected answer correct	6,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	6,000selected answer correct
3	December 03	Prepaid insuranceselected answer correct	3,600selected answer correct	not attempted
		Cashselected answer correct	not attempted	3,600selected answer correct
4	December 04	Rent expenseselected answer correct	1,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	1,000selected answer correct
5	December 07	Cashselected answer correct	1,100selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	1,100selected answer correct
6	December 08	Wages expenseselected answer correct	200selected answer correct	not attempted
		Cashselected answer correct	not attempted	200selected answer correct
7	December 09	Accounts receivableselected answer correct	3,000selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	2,400selected answer correct
		Rental revenueselected answer correct	not attempted	600selected answer correct
8	December 19	Cashselected answer correct	3,000selected answer correct	not attempted
		Accounts receivableselected answer correct	not attempted	3,000selected answer correct
9	December 20	Suppliesselected answer correct	2,000selected answer correct	not attempted
		Services revenueselected answer incorrect	not attempted	2,000selected answer correct
10	December 23	Cashselected answer correct	1,600selected answer correct	not attempted
		Unearned revenueselected answer correct	not attempted	1,600selected answer correct
11	December 29	Accounts payableselected answer correct	1,300selected answer correct	not attempted
		Cashselected answer correct	not attempted	1,300selected answer correct
12	December 30	Dividendsselected answer correct	500selected answer correct	not attempted
		Cashselected answer correct	not attempted	500selected answer correct
13	December 31	Insurance expenseselected answer correct	300selected answer correct	not attempted
		Prepaid insuranceselected answer correct	not attempted	300selected answer correct
14	December 31	Supplies expenseselected answer correct	800selected answer correct	not attempted
		Suppliesselected answer correct	not attempted	800selected answer correct
15	December 31	Depreciation expense - Equipmentselected answer correct	100selected answer correct	not attempted
		Accumulated depreciation - Equipmentselected answer correct	not attempted	100selected answer correct
16	December 31	Unearned revenueselected answer correct	400selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	400selected answer correct
17	December 31	Wages expenseselected answer correct	600selected answer correct	not attempted
		Wages payableselected answer correct	not attempted	600selected answer correct
18	December 31	Accounts receivableselected answer correct	1,400selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	1,400selected answer correct
19	December 31	Services revenueselected answer correct	not attempted	not attempted
		Rental revenueselected answer correct	not attempted	not attempted
		Income summaryselected answer correct	not attempted	not attempted
20	December 31	Income summaryselected answer correct	2,600selected answer incorrect	not attempted
		Depreciation expense - Equipmentselected answer correct	not attempted	100selected answer correct
		Wages expenseselected answer correct	not attempted	800selected answer correct
		Insurance expenseselected answer correct	not attempted	300selected answer correct
		Rent expenseselected answer correct	not attempted	600selected answer incorrect
		Supplies expenseselected answer correct	not attempted	800selected answer correct
21	December 31	Income summaryselected answer correct	not attempted	not attempted
		Retained earningsselected answer correct	not attempted	not attempted
22	December 31	Retained earningsselected answer correct	500selected answer correct	not attempted
		Dividendsselected answer correct	not attempted	500selected answer correct

3. Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

Unadjusted Adjusted Post-closing

Post-closing

General Ledger Account

Cash
No.	Date	Debit	Credit	Balance
	December 01			0
1	December 01	20,000		20,000
2	December 02		6,000	14,000
3	December 03		3,600	10,400
4	December 04		1,000	9,400
5	December 07	1,100		10,500
6	December 08		200	10,300
8	December 19	3,000		13,300
10	December 23	1,600		14,900
11	December 29		1,300	13,600
12	December 30		500	13,100

Accounts receivable
No.	Date	Debit	Credit	Balance
	December 01			0
7	December 09	3,000		3,000
8	December 19		3,000	0
18	December 31	1,400		1,400

Supplies
No.	Date	Debit	Credit	Balance
	December 01			0
9	December 20	2,000		2,000
14	December 31		800	1,200

Prepaid insurance
No.	Date	Debit	Credit	Balance
	December 01			0
3	December 03	3,600		3,600
13	December 31		300	3,300

Equipment
No.	Date	Debit	Credit	Balance
	December 01			0
2	December 02	6,000		6,000

Accumulated depreciation - Equipment
No.	Date	Debit	Credit	Balance
	December 01			0
15	December 31		100	100

Accounts payable
No.	Date	Debit	Credit	Balance
	December 01			0
11	December 29	1,300		(1,300)

Wages payable
No.	Date	Debit	Credit	Balance
	December 01			0
17	December 31		600	600

Unearned revenue
No.	Date	Debit	Credit	Balance
	December 01			0
10	December 23		1,600	1,600
16	December 31	400		1,200

Common stock
No.	Date	Debit	Credit	Balance
	December 01			0
1	December 01		20,000	20,000

Retained earnings
No.	Date	Debit	Credit	Balance
	December 01			0
22	December 31	500		(500)

Dividends
No.	Date	Debit	Credit	Balance
	December 01			0
12	December 30	500		500
22	December 31		500	0

Services revenue
No.	Date	Debit	Credit	Balance
	December 01			0
5	December 07		1,100	1,100
7	December 09		2,400	3,500
9	December 20		2,000	5,500
16	December 31		400	5,900
18	December 31		1,400	7,300

Rental revenue
No.	Date	Debit	Credit	Balance
	December 01			0
7	December 09		600	600

Depreciation expense - Equipment
No.	Date	Debit	Credit	Balance
	December 01			0
15	December 31	100		100
20	December 31		100	0

Wages expense
No.	Date	Debit	Credit	Balance
	December 01			0
6	December 08	200		200
17	December 31	600		800
20	December 31		800	0

Insurance expense
No.	Date	Debit	Credit	Balance
	December 01			0
13	December 31	300		300
20	December 31		300	0

Rent expense
No.	Date	Debit	Credit	Balance
	December 01			0
4	December 04	1,000		1,000
20	December 31		600	400

Supplies expense
No.	Date	Debit	Credit	Balance
	December 01			0
14	December 31	800		800
20	December 31		800	0

Income summary
No.	Date	Debit	Credit	Balance
	December 01			0
20	December 31	2,600		(2,600)

4. You may view either theunadjusted, adjusted, or post-closing trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs.

Unadjusted Adjusted Post-closing

Post-closing

Trial Balance
December 31, 2023
Account Title	Debit	Credit
Cash	13,100
Accounts receivable	1,400
Supplies	1,200
Prepaid insurance	3,300
Equipment	6,000
Accumulated depreciation - Equipment		100
Accounts payable	1,300
Wages payable		600
Unearned revenue		1,200
Common stock		20,000
Retained earnings	500
Services revenue		7,300
Rental revenue		600
Rent expense	400
Income summary	2,600
Total	29,800	29,800

5. Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.

Unadjusted Adjusted Post-closing

Post-closing

Income Statement
For Month Ended December 31
Revenues
Services revenueselected answer correct	$7,300not attempted
Accumulated depreciation - Equipmentselected answer incorrect	$100not attempted
not attempted	0not attempted
Total revenues		$7,400
Expenses
Rent expenseselected answer correct	400not attempted
Wages expenseselected answer correct	0not attempted
Supplies expenseselected answer correct	0not attempted
Insurance expenseselected answer correct	0not attempted
Depreciation expense - Equipmentselected answer correct	0not attempted
not attempted	0not attempted
Total expenses		400
Net income		$7,000

6. heunadjusted or adjusted balances will appear for each account, based on your selection. (Selecting Post-Closing will only display ending balance.)

Unadjusted Adjusted Post-closing

Post-closing

Statement of Retained Earnings
For Month Ended December 31
Retained earnings, December 1	$0
	7,000
	7,000
Retained earnings, December 31	$7,000

7. Use the drop-downs to select the accounts properly included on the balance sheet. Theunadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.

Unadjusted Adjusted Post-closing

Post-closing

Balance Sheet
December 31
ASSETS
Current assets
Cashselected answer correct	$13,100not attempted
Accounts receivableselected answer correct	1,400not attempted
Suppliesselected answer correct	1,200not attempted
Prepaid insuranceselected answer correct	3,300not attempted
not attempted	0not attempted
Total current assets		$19,000
Plant assets
Equipmentselected answer correct	6,000
Accumulated depreciation - Equipmentselected answer correct	(100)
Equipment, net		5,900
Total assets		$24,900
LIABILITIES
Current liabilities
Accounts payableselected answer correct	$(1,300)not attempted
Wages payableselected answer correct	$600not attempted
Unearned revenueselected answer correct	$1,200not attempted
not attempted	0not attempted
Total liabilities		$500
EQUITY
Common stockselected answer correct	20,000not attempted
Retained earningsselected answer correct	7,000not attempted
Total equity		27,000
Total liabilities and equity		$27,500

8. Begin by selecting "Post-closing" from the drop-down below. Then, for each account, use the drop-down to indicate whether the account is included on the post-closing trial balance. Based on your decisions, the post-closing trial balance will be created. Compare your results with the Trial Balance tab.

Unadjusted Adjusted Post-closing

Post-closing

	Included on Post-closing trial balance?	Type of Account	Post-closing Trial Balance
Account	Debit	Credit
Cash	Yesselected answer correct	Permanent	13,100
Accounts receivable	Yesselected answer correct	Permanent	1,400
Supplies	Yesselected answer correct	Permanent	1,200
Prepaid insurance	Yesselected answer correct	Permanent	3,300
Equipment	Yesselected answer correct	Permanent	6,000
Accumulated depreciation - Equipment	Yesselected answer correct	Permanent		100
Accounts payable	Yesselected answer correct	Permanent		(1,300)
Wages payable	Yesselected answer correct	Permanent		600
Unearned revenue	Yesselected answer correct	Permanent		1,200
Common stock	Yesselected answer correct	Permanent		20,000
Retained earnings	Yesselected answer correct	Permanent		7,000
Dividends	Noselected answer correct	Temporary
Services revenue	Noselected answer correct	Temporary
Rental revenue	Noselected answer correct	Temporary
Depreciation expenseEquipment	Noselected answer correct	Temporary
Wages expense	Noselected answer correct	Temporary
Insurance expense	Noselected answer correct	Temporary
Rent expense	Noselected answer correct	Temporary
Supplies expense	Noselected answer correct	Temporary
Totals			$25,000	$27,600