a. Profit and Loss exported to Excel before your closing entries b. Balance Sheet - exported to Excel c. Statement of Retained Earnings (you need to create it separately in Excel) d. Journal entries (export into Excel) e. Profit and Loss after closing entries. You should show a balance of 0. f. Disclosures, ratios and explanation (can be added to the Excel spreadsheet) Step 2 - Chart of Account Information Paula's Plumbing, Inc. On December 1, 2019 Paula Petersen formed a corporation called Paula's Plumbing, Inc. to provide plumbing services for businesses and homeowners. The newly formed corporation uses the following accounts: Take note that some of these accounts may already exist such as accounts receivable and accounts payable. Account Type Bank Accounts Receivable Other Current Assets Other Current Assets Detail Type Cash on Hand Accounts Receivable Prepaid Expenses Prepaid Expenses Account Name Cash Accounts Receivable Prepaid Rent Unexpired Malpractice Insurance Office Supplies 2 Plumbing Equipment Other Current Assets Fixed Assets Other Current Assets Fixed Asset Other Tools Equipment Accumulated Depreciation Fixed Assets Accounts Payable Long-term Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Equity Equity Equity Equity Accounts Payable Notes Pavable Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Owner's Equity Retained Earnings Common Stock Owner's Equity Accumulated Depreciation Accounts Payable Notes Payable Uneared Plumbing Fees Interest Payable Income Tax Payable Dividends Payable Payroll Payable Common Stock Retained Earnings Dividends Income Summary Income Expenses Expenses Expenses Expenses Service Fee Income Oher Business Expenses Other Business Expenses Insurance Interest Paid Office Supplies & Software Expense Rent or Lease of Buildings Payroll Expenses Plumbing Fees Earned Depreciation Expense Income Tax Expense Already exists Already exists Already exists Expenses Expenses Rent or Lease Expense Payroll Expenses Expenses Utilities Expense Already exists as just Utilities Step 3 - Journal Entries 1. Now you are ready to input your journal entries. Click on the Magnify glass (to activate the search function) at the upper right-hand top of the screen and choose to jump to Journal Entry. 2. To get you started, here is the first transaction. a. Make sure you change the date to 12/1/2019. b. To get you started, Debit Cash for 40,000 and credit Capital Stock for 40.000 c. Choose Save, New. d. Each journal entry should be separate. e. Do all the General Journal Entries. f. After you complete the general entries, you will then do the adjusting entries. There is no separate journal in this program for adjusting or closing entries. Journal Entries The Corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December the following transactions occurred. (These are your joumal entries.) Dec. 1 Issued 20,000 shares of capital stock to Paula Petersen and other investors in exchange for a total of $40,000 cash. Dec. 1 Paid $9,600 to Mages Realty for 12 months rent paid in advance. (Use the Asset account: Prepaid Rent for the entire amount). Dec.2 Purchased plumbing repair equipment and tools from Host Corp. for $15,000 (use the account Plumbing Equipment). Paid $5,000 in cash with the balance due on a Note Payable (principal and interest due in 6 months). Dec. 4 Purchased office supplies on Account from Clousers for $1,000. Payment is due in 15 days. These supplies are expected to last for several months. Dec. 5 Purchased a 6 month business Insurance Policy for $1.200 from the Sexler, Agency (use the Asset account Unexpired Insurance for the entire amount). Dec. 10 Received $4.000 cash from the Wink Apartment Complex in Exeter Township as advance payment for services to be provided. (Use the Liability account: Uneamed Plumbing Fees.) Dec. 16 Paid employee salaries for the first two weeks of December, $2,000. Dec. 16 Eamed $7,500 in fees for plumbing repairs completed in the first two weeks of December. $3,000 was received in cash and the remainder was billed to PPI's customers on Account (due in 10 days.) Dec. 19 Paid the amount due to Clousers on account from the Dec. 4th purchase. Dec. 26 Received amount due on account from the December 16+ billing. Dec. 27 PPI was named, along with Mages Agency, as a co-defendant in a $15,000 lawsuit filed on behalf of Joseph Walker. Walker slipped on ice outside of the shop and broke his leg. The extent of the Corporation's legal and financial responsibility, if any, can not be determined at this time. (Note: this event does not need a journal entry at this time, but may require disclosure in the notes accompanying the financial statements, Dec. 30 Received a phone bill for the month of December from Sprint in the amount of $300. The amount is due on January 15, 2020. Dec. 30 Declared a cash dividend of 5.05 65 cents) per share, payable on January 15, 2020. (You declare first and pay later so credit Dividends Payable) Dec. 31 Earned $9,000 in fees for plumbing repairs provided for the second two weeks of December. $4,000 was received in cash and the remainder was billed to PPI's customers on Account (due in 12 days.) Data for Adjusting entries (These are done in the general journal.) Remember you are only adjusting for one month. a. The advance payment for rent on December 1 covered a period of 12 months b. The Insurance policy is for 6 months c. The annual interest rate on the Note Payable to Host, Corp. is 6% d. The Plumbing Equipment is being depreciated by the straight-line method for a period of 5 years. e. Office Supplies on hand on December 31 are estimated at $600 1. During December, PPI earned $1,000 of the plumbing fees paid in advance by Winks Apartment Complex December 10 g. Salaries eamed by employees since last payroll are $2,200. The Salaries will be paid on 1/3/15 h. The Accountant estimates that the amount of Income Tax Payable will be $2,500. These taxes will be paid in 2020. *Remember Cash is never involved in adjusting entries. a. Profit and Loss exported to Excel before your closing entries b. Balance Sheet - exported to Excel c. Statement of Retained Earnings (you need to create it separately in Excel) d. Journal entries (export into Excel) e. Profit and Loss after closing entries. You should show a balance of 0. f. Disclosures, ratios and explanation (can be added to the Excel spreadsheet) Step 2 - Chart of Account Information Paula's Plumbing, Inc. On December 1, 2019 Paula Petersen formed a corporation called Paula's Plumbing, Inc. to provide plumbing services for businesses and homeowners. The newly formed corporation uses the following accounts: Take note that some of these accounts may already exist such as accounts receivable and accounts payable. Account Type Bank Accounts Receivable Other Current Assets Other Current Assets Detail Type Cash on Hand Accounts Receivable Prepaid Expenses Prepaid Expenses Account Name Cash Accounts Receivable Prepaid Rent Unexpired Malpractice Insurance Office Supplies 2 Plumbing Equipment Other Current Assets Fixed Assets Other Current Assets Fixed Asset Other Tools Equipment Accumulated Depreciation Fixed Assets Accounts Payable Long-term Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Equity Equity Equity Equity Accounts Payable Notes Pavable Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Owner's Equity Retained Earnings Common Stock Owner's Equity Accumulated Depreciation Accounts Payable Notes Payable Uneared Plumbing Fees Interest Payable Income Tax Payable Dividends Payable Payroll Payable Common Stock Retained Earnings Dividends Income Summary Income Expenses Expenses Expenses Expenses Service Fee Income Oher Business Expenses Other Business Expenses Insurance Interest Paid Office Supplies & Software Expense Rent or Lease of Buildings Payroll Expenses Plumbing Fees Earned Depreciation Expense Income Tax Expense Already exists Already exists Already exists Expenses Expenses Rent or Lease Expense Payroll Expenses Expenses Utilities Expense Already exists as just Utilities Step 3 - Journal Entries 1. Now you are ready to input your journal entries. Click on the Magnify glass (to activate the search function) at the upper right-hand top of the screen and choose to jump to Journal Entry. 2. To get you started, here is the first transaction. a. Make sure you change the date to 12/1/2019. b. To get you started, Debit Cash for 40,000 and credit Capital Stock for 40.000 c. Choose Save, New. d. Each journal entry should be separate. e. Do all the General Journal Entries. f. After you complete the general entries, you will then do the adjusting entries. There is no separate journal in this program for adjusting or closing entries. Journal Entries The Corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December the following transactions occurred. (These are your joumal entries.) Dec. 1 Issued 20,000 shares of capital stock to Paula Petersen and other investors in exchange for a total of $40,000 cash. Dec. 1 Paid $9,600 to Mages Realty for 12 months rent paid in advance. (Use the Asset account: Prepaid Rent for the entire amount). Dec.2 Purchased plumbing repair equipment and tools from Host Corp. for $15,000 (use the account Plumbing Equipment). Paid $5,000 in cash with the balance due on a Note Payable (principal and interest due in 6 months). Dec. 4 Purchased office supplies on Account from Clousers for $1,000. Payment is due in 15 days. These supplies are expected to last for several months. Dec. 5 Purchased a 6 month business Insurance Policy for $1.200 from the Sexler, Agency (use the Asset account Unexpired Insurance for the entire amount). Dec. 10 Received $4.000 cash from the Wink Apartment Complex in Exeter Township as advance payment for services to be provided. (Use the Liability account: Uneamed Plumbing Fees.) Dec. 16 Paid employee salaries for the first two weeks of December, $2,000. Dec. 16 Eamed $7,500 in fees for plumbing repairs completed in the first two weeks of December. $3,000 was received in cash and the remainder was billed to PPI's customers on Account (due in 10 days.) Dec. 19 Paid the amount due to Clousers on account from the Dec. 4th purchase. Dec. 26 Received amount due on account from the December 16+ billing. Dec. 27 PPI was named, along with Mages Agency, as a co-defendant in a $15,000 lawsuit filed on behalf of Joseph Walker. Walker slipped on ice outside of the shop and broke his leg. The extent of the Corporation's legal and financial responsibility, if any, can not be determined at this time. (Note: this event does not need a journal entry at this time, but may require disclosure in the notes accompanying the financial statements, Dec. 30 Received a phone bill for the month of December from Sprint in the amount of $300. The amount is due on January 15, 2020. Dec. 30 Declared a cash dividend of 5.05 65 cents) per share, payable on January 15, 2020. (You declare first and pay later so credit Dividends Payable) Dec. 31 Earned $9,000 in fees for plumbing repairs provided for the second two weeks of December. $4,000 was received in cash and the remainder was billed to PPI's customers on Account (due in 12 days.) Data for Adjusting entries (These are done in the general journal.) Remember you are only adjusting for one month. a. The advance payment for rent on December 1 covered a period of 12 months b. The Insurance policy is for 6 months c. The annual interest rate on the Note Payable to Host, Corp. is 6% d. The Plumbing Equipment is being depreciated by the straight-line method for a period of 5 years. e. Office Supplies on hand on December 31 are estimated at $600 1. During December, PPI earned $1,000 of the plumbing fees paid in advance by Winks Apartment Complex December 10 g. Salaries eamed by employees since last payroll are $2,200. The Salaries will be paid on 1/3/15 h. The Accountant estimates that the amount of Income Tax Payable will be $2,500. These taxes will be paid in 2020. *Remember Cash is never involved in adjusting entries