ACCOUNTING CYCLE DEMONSTRATION. (1) Journalize (2) Post (3) Unadjusted Trial Balance (4) Adjusting Entries (5) Adjusted Trial Balance (6) Financial Statements (Income Statement, Retained Earnings Statement, and Balance Sheet). Closing Entries, Post-Closing Trial Balance, Reversing Entries. Dec. 1. 2019 Avery invested cash, S500,000, equipment $120,000, and transferred the outstanding note on the equipment to Avery Munnings, LLC, 520,000. Dec 1 2019 Borrowed 550,000 from Bank of America and gave a note, promising to pay in 2 years. Dec 1 2019 Paid 3-year insurance premium, $3,600, effective from Dec 1, 2019. Dec 1 2019 Entered into an agreement with a client to perform $60,000 consulting service that will begin on Dec. 20, 2019. Dec 5 Bought Supplies, $3,000 for cash. Dec 6 Bought more supplies for $4,000 on account Dec. 8 Received $15,000 from a client for services to be performed in future Normally: Cash $15,000 Uneared Service Revenue $15,000 Dec. 22 Completed part of the contract agreement entered on Dec. 1, $20,000 on account Dec. 23 Performed services yielding S6,000 to fulfill part of the services related to Dec 8. Dec 24 Paid Utilities, S2,500. Required: Prepare general journal entries, post your entries to the ledger, and prepare an unadjusted trial balance. General Journal Ace Title Dec 1, 2019 Cash Accounts Payable Capital SS. 100 5500,000 $120,000 Equipment Account Capital Dec 1, 2019 Cash Notes Payable Expense Cash Dec. 2019 NO TRANSACTION, NO ENTRY $ Supplier 6 Supplies Accounts Payable SIS Service 530 Receive Service Revenue Service Uncanned kimenet SES. Service Rescue Account Receivable Service Revenue Service Uncated Service Rece 25 Cash ADJUSTING ENTRIES Salais Payable Supplies Expense A Receivable Service Rev Depreciation Expeme Accum Depreciation Prepaid named Saeco Service Revene CLOSING ENTRIES To be need GENERAL LEDGER Cash 50,000 3.000 15,000.00 565,000 9,100 Bal 5955.900 Equipment 120,000 Accounts Payable CE $30,000 4.000 534,000 De Accounts Payable CE 520.000 Capital CE 5600,000 Notes Payable th $90,000 Insurance Expense Supplies th 53.000 4,000 Balance7,000 Service Revenue 515.000 20,000 Uneamed Service Revenue De 59 Accounts Receivable 520.000 De Utilities Expense De List Trial Balance Items as follows: 1. Assets in order of liquidity the order by which cach account can be converted into cash) 2. Liabilities the order by which cach account can be paid. 3. Capital 4. Retained Eamings 5. Dividend 6. Revenues 7. Expenses 8. Gains 9. Losses Avery Munnings, LLC Unadjusted Trial Balance As at December 31, 2019 Accountitle Cash Accounts Receivable $30,000 Supplies Accounts Payable Notes Payable Uncamed Reme Service Reve Insurance Expense Utilities spene 2.500 5709,000 5709,000 The following additional information came to our attention after the Unadjusted trial balance had been prepared. Make necessary journal entries, post the entries to the existing account, and if an account you need is not existing, create it. Then prepare an adjusted trial balance. Below are the additional data for the adjusting entries: a) Accrued salaries $1,500 b) Supplies on hand at the end of the month, S4,500 c) Accrued service revenue, S10,000 d) Depreciation on Equipment is $750. e) One-month insurance premium expired. f) Additional information showed that unearned service revenue had a balance of $7,000 Make necessary adjusting entries using the above additional information. Post all the adjusting entries into the existing accounts in the general ledger. If an account does not exist, create it. Prepare an adjusted Trial Balance Prepare Income Statement, Retained Earnings Statement, and a Balance Sheet Prepare Closing entries Prepare Post-closing trial balance Prepare Reversing Entries you. Post the Adjusting entries, prepare an adjusted trial balance, and the financial statements. Then prepare a post-closing trial balance, and prepare reversing entries at the beginning of the subsequent accounting period. ACCOUNTING CYCLE DEMONSTRATION. (1) Journalize (2) Post (3) Unadjusted Trial Balance (4) Adjusting Entries (5) Adjusted Trial Balance (6) Financial Statements (Income Statement, Retained Earnings Statement, and Balance Sheet). Closing Entries, Post-Closing Trial Balance, Reversing Entries. Dec. 1. 2019 Avery invested cash, S500,000, equipment $120,000, and transferred the outstanding note on the equipment to Avery Munnings, LLC, 520,000. Dec 1 2019 Borrowed 550,000 from Bank of America and gave a note, promising to pay in 2 years. Dec 1 2019 Paid 3-year insurance premium, $3,600, effective from Dec 1, 2019. Dec 1 2019 Entered into an agreement with a client to perform $60,000 consulting service that will begin on Dec. 20, 2019. Dec 5 Bought Supplies, $3,000 for cash. Dec 6 Bought more supplies for $4,000 on account Dec. 8 Received $15,000 from a client for services to be performed in future Normally: Cash $15,000 Uneared Service Revenue $15,000 Dec. 22 Completed part of the contract agreement entered on Dec. 1, $20,000 on account Dec. 23 Performed services yielding S6,000 to fulfill part of the services related to Dec 8. Dec 24 Paid Utilities, S2,500. Required: Prepare general journal entries, post your entries to the ledger, and prepare an unadjusted trial balance. General Journal Ace Title Dec 1, 2019 Cash Accounts Payable Capital SS. 100 5500,000 $120,000 Equipment Account Capital Dec 1, 2019 Cash Notes Payable Expense Cash Dec. 2019 NO TRANSACTION, NO ENTRY $ Supplier 6 Supplies Accounts Payable SIS Service 530 Receive Service Revenue Service Uncanned kimenet SES. Service Rescue Account Receivable Service Revenue Service Uncated Service Rece 25 Cash ADJUSTING ENTRIES Salais Payable Supplies Expense A Receivable Service Rev Depreciation Expeme Accum Depreciation Prepaid named Saeco Service Revene CLOSING ENTRIES To be need GENERAL LEDGER Cash 50,000 3.000 15,000.00 565,000 9,100 Bal 5955.900 Equipment 120,000 Accounts Payable CE $30,000 4.000 534,000 De Accounts Payable CE 520.000 Capital CE 5600,000 Notes Payable th $90,000 Insurance Expense Supplies th 53.000 4,000 Balance7,000 Service Revenue 515.000 20,000 Uneamed Service Revenue De 59 Accounts Receivable 520.000 De Utilities Expense De List Trial Balance Items as follows: 1. Assets in order of liquidity the order by which cach account can be converted into cash) 2. Liabilities the order by which cach account can be paid. 3. Capital 4. Retained Eamings 5. Dividend 6. Revenues 7. Expenses 8. Gains 9. Losses Avery Munnings, LLC Unadjusted Trial Balance As at December 31, 2019 Accountitle Cash Accounts Receivable $30,000 Supplies Accounts Payable Notes Payable Uncamed Reme Service Reve Insurance Expense Utilities spene 2.500 5709,000 5709,000 The following additional information came to our attention after the Unadjusted trial balance had been prepared. Make necessary journal entries, post the entries to the existing account, and if an account you need is not existing, create it. Then prepare an adjusted trial balance. Below are the additional data for the adjusting entries: a) Accrued salaries $1,500 b) Supplies on hand at the end of the month, S4,500 c) Accrued service revenue, S10,000 d) Depreciation on Equipment is $750. e) One-month insurance premium expired. f) Additional information showed that unearned service revenue had a balance of $7,000 Make necessary adjusting entries using the above additional information. Post all the adjusting entries into the existing accounts in the general ledger. If an account does not exist, create it. Prepare an adjusted Trial Balance Prepare Income Statement, Retained Earnings Statement, and a Balance Sheet Prepare Closing entries Prepare Post-closing trial balance Prepare Reversing Entries you. Post the Adjusting entries, prepare an adjusted trial balance, and the financial statements. Then prepare a post-closing trial balance, and prepare reversing entries at the beginning of the subsequent accounting period