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, $500,000, equipment $120,000, and transferred the outstanding note on the equipment to Avery Munnings, LLC., S20,000. Dec 1 2019 Borrowed $50,000 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 Unearned 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, $2,500. Required: Prepare general journal entries, post your entries to the ledger, and prepare an unadjusted trial balance. General Journal Date Account Title Dec 1, 2019 Cash Equipment Accounts Payable S500.000 120,000 Alternatively Cash Capital $120,000 Equipment Accounts Payable Capital Dec 1, 2019 Cash Notes Payable Insurance Expense 550,000 Dec. 1 2019 NO TRANSACTION, NO ENTRY 5 Supplies 53.000 Cach 53.000 6 $4.000 Supplies Accounts Payable $4.000 instead Cash SI5.000 Dec NO TRANSACTION, NO ENTRY 5 Supplies Cash 53,000 S4.000 Supplies Accounts Payable Cesten $15,000 Service Revenue 22 Accounts Receivable $20,000 Service Revenue Service Revenue Uncamed Service Revenue Utilities Cash ADJUSTING ENTRIES Salaries Expense 1.500 Salaries Payable Supplies Expense Supplies Accounts Receivable 10,000 Service Revenue 10.000 Depreciation Expense 750 Accum. Depreciation Equipment Prepaid Insurance 3.500 Insurance Expense Uneared Service Revenue Service Revenue CLOSING ENTRIES To be inserted GENERAL LEDGER Cash Dr. $500,000 3.600 50,000 1.000 15,000 2.500 GENERAL LEDGER Cash Dr. $500,000 3.600 50,000 3.000 15,000 2.500 565,0009.100 Bal. 5555,900 Equipment C. DE 120,000 Accounts Payable Dr C $20,000 4.000 534.000 Bal Capital Dr. $600,000 Notes Payable CE 550.000 Insurance Expense C. $3,500 Supplies Cr $3,000 4 Balance 57.000 Service Revenue 9,000 Cr SI5.000 20.000 Unearned Service Revenue 59.000 Accounts Receivable Dr $20.000 9,000 SI5.000 20.000 Unearned Service Revenue 59.000 Accounts Receivable $20,000 Dr. C Utilities Expense Dr. Cr. $2.500 List Trial Balance Items as follows: 1. Assets (in order of liquidity-the order by which each account can be converted into cash) 2. Liabilities-the order by which each account can be paid. 3. Capital 4. Retained Earnings 5. Dividend 6. Revenues 7. Expenses 8. Gains 9. Losses Avery Munnings, LLC Unadjusted Trial Balance As at December 31, 2019 Account title Cash Dr. CE 5555.900 Accounts Receivable $20,000 Supplies $7,000 Equipment 120,000 Accounts Payable $24,000 Notes Payable $50,000 Uncanned Revenue 9,000 600,000 Capital Service Revenue Insurance Expense Utilities Expense $26 3,600 2.500 $709,000 S709,000 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, $4,500. c) Accrued service revenue, $10,000. d) Depreciation on Equipment is $750. DOCX - 28 KB Cash $555,900 Accounts Receivable $20,000 Supplies $7,000 Equipment 120,000 Accounts Payable Notes Payable S24.000 $50,000 Uneared Revenue 9,000 Capital 600,000 Service Revenue Insurance Expense Utilities Expense S26,000 3,600 2.500 $709,000 $709,000 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, $4,500. c) Accrued service revenue, $10,000. 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, $500,000, equipment $120,000, and transferred the outstanding note on the equipment to Avery Munnings, LLC., S20,000. Dec 1 2019 Borrowed $50,000 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 Unearned 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, $2,500. Required: Prepare general journal entries, post your entries to the ledger, and prepare an unadjusted trial balance. General Journal Date Account Title Dec 1, 2019 Cash Equipment Accounts Payable S500.000 120,000 Alternatively Cash Capital $120,000 Equipment Accounts Payable Capital Dec 1, 2019 Cash Notes Payable Insurance Expense 550,000 Dec. 1 2019 NO TRANSACTION, NO ENTRY 5 Supplies 53.000 Cach 53.000 6 $4.000 Supplies Accounts Payable $4.000 instead Cash SI5.000 Dec NO TRANSACTION, NO ENTRY 5 Supplies Cash 53,000 S4.000 Supplies Accounts Payable Cesten $15,000 Service Revenue 22 Accounts Receivable $20,000 Service Revenue Service Revenue Uncamed Service Revenue Utilities Cash ADJUSTING ENTRIES Salaries Expense 1.500 Salaries Payable Supplies Expense Supplies Accounts Receivable 10,000 Service Revenue 10.000 Depreciation Expense 750 Accum. Depreciation Equipment Prepaid Insurance 3.500 Insurance Expense Uneared Service Revenue Service Revenue CLOSING ENTRIES To be inserted GENERAL LEDGER Cash Dr. $500,000 3.600 50,000 1.000 15,000 2.500 GENERAL LEDGER Cash Dr. $500,000 3.600 50,000 3.000 15,000 2.500 565,0009.100 Bal. 5555,900 Equipment C. DE 120,000 Accounts Payable Dr C $20,000 4.000 534.000 Bal Capital Dr. $600,000 Notes Payable CE 550.000 Insurance Expense C. $3,500 Supplies Cr $3,000 4 Balance 57.000 Service Revenue 9,000 Cr SI5.000 20.000 Unearned Service Revenue 59.000 Accounts Receivable Dr $20.000 9,000 SI5.000 20.000 Unearned Service Revenue 59.000 Accounts Receivable $20,000 Dr. C Utilities Expense Dr. Cr. $2.500 List Trial Balance Items as follows: 1. Assets (in order of liquidity-the order by which each account can be converted into cash) 2. Liabilities-the order by which each account can be paid. 3. Capital 4. Retained Earnings 5. Dividend 6. Revenues 7. Expenses 8. Gains 9. Losses Avery Munnings, LLC Unadjusted Trial Balance As at December 31, 2019 Account title Cash Dr. CE 5555.900 Accounts Receivable $20,000 Supplies $7,000 Equipment 120,000 Accounts Payable $24,000 Notes Payable $50,000 Uncanned Revenue 9,000 600,000 Capital Service Revenue Insurance Expense Utilities Expense $26 3,600 2.500 $709,000 S709,000 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, $4,500. c) Accrued service revenue, $10,000. d) Depreciation on Equipment is $750. DOCX - 28 KB Cash $555,900 Accounts Receivable $20,000 Supplies $7,000 Equipment 120,000 Accounts Payable Notes Payable S24.000 $50,000 Uneared Revenue 9,000 Capital 600,000 Service Revenue Insurance Expense Utilities Expense S26,000 3,600 2.500 $709,000 $709,000 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, $4,500. c) Accrued service revenue, $10,000. 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