Accounting Cycle - a month worth of entries

Shell Journal Entries

2/1/13 Start a corporation by investing XX in cash

2/1/13 Also invest YY in computers

2/2/13 Purchase AA in inventory

2/3/13 Buy a building for ZZ

2/17/13 Make a cash sale of inventory for BB. Cost of inventory was CC.

2/21/13 Make a credit sale of FF. Cost of inventory was GG.

2/25/13 Pay employees HH

2/27/13 Purchase inventory on credit for JJ.

2/31/13 Record accrued salary expense of KK.

2/31/13 Record depreciation expense of LL

Required:

1.Write journal entries (JEs) for "day to day" transactions.

2.Post JEs to t-accts

3.Write adjusting JEs

4.Post adjusting JEs

5.Write closing JEs

6.Prepare Balance Sheet and Income Statement. Consider how the Statement of Cash Flows would be prepared.