ABC Company Inc. is a new company that began operations on October 5th, 2020.

The following are the only events that have occurred since the companys inception.

REQUIRED:

Prepare the Journal Entries (using the chart of accounts to your right), T accounts, Trial Balance as of 12-31-20,

the Income Statement, the Statement of Owners Equity, and the Balance sheet for the year.

Lastly, please prepare the closing entries and the post closing trial balance.

10-05-20 John Smith, Sole Shareholder of ABC Inc, contributed $100,000 to the company.

10-18-20 ABC Company Inc. paid rent for October 2020 through March of 2021 in the amount of $1200 per month

11-01-20 ABC Company Inc. bought a tractor for $78,000 They made a $15,000 down payment and are financing the rest.

11-08-20 ABC Company Inc. performed $70,000 of Landscaping services and was paid $45,000 immediately and expects to receive the balance at some point in the next 90 days.

11-14-20 ABC Company Inc. received a payment of $80,000 from XYZ Company for work that ABC Company will do over the next few months.

11-16-20 ABC Company Inc. bought office supplies for $500 and paid Cash.

12-02 20 ABC Company Inc. paid salaries in the amount of $2500 for the pay period of November 15th to November 30th

12-07-20 ABC Company Inc. received a payment for the work they performed on 11-08-20 in the amount of $6000

12-14-20 ABC Company Inc. made a $12,000 payment on the tractor that they purchased on 11-1-20 ($1,427 of the payment is for interest)

12-17 20 ABC Company Inc. paid salaries in the amount of $2500 for the pay period of December 1st to December 15th.

12-18-20 ABC Company Inc. bought office supplies for $1200 on account.

12-20-20 ABC Company Inc. paid a utility bill for $600 and made a $250 insurance payment

12-22-20 John Smith, Sole Shareholder of ABC Inc, withdrew $3,000 from ABC Company.

12-23-20 ABC Company did 20% of the work they were paid for on 11-14-20

12-31-20 Prepare the adjusting journal entry to accrue for salaries for the pay period of December 16th to December 31st in the amount of $2500

12-31-20 Prepare the adjusting journal entry that reflects that we have $900 of Office Supplies remaining as of 12-31-20

12-31-20 Prepare the adjusting journal entry to record depreciation on the tractor that was purchased on 11-01-2020 (Use Straight Line Depreciation, 5 year life, and $24,000 salvage value)

12-31-20 Prepare the adjusting journal entry to record the adjustment needed for prepaid rent and rent expense.

12-31-20 Prepare the adjusting journal entry to record $127 of interest earned on the company checking account.

12-31-20 Prepare the adjusting journal entry to record $684 of accrued interest owed on the tractor that was purchased on 11-18-20

THANK YOU