Accounting Cycle Project Intermediate Accounting I Spring Semester 2023

On December 1, Ed Washington began an auto repair shop, Washingtons Quality Automotive, Inc. The following transactions occurred during the month of December: 12/01 Washington contributed $64,000 cash to the business for 8,000 shares of $1 par value common stock. 1,000,000 shares of stock are authorized to be sold. 12/01 Purchased $9,000 of equipment, paying cash. 12/01 Paid $800 for a four-month insurance policy starting on December 1 12/09 Paid $17,000 cash to purchase land, to be used in operations 12/10 Purchased office supplies on account, $1,500 12/19 Borrowed $28,000 from the bank for business use. Washington signed a note payable to the bank in the name of the corporation. The note is due in 5 years. 12/22 Paid $1,100 cash for advertising expenses 12/26 Paid $300 on account (transaction on 12/10) 12/28 The business received a bill for utilities, to be paid in January, $180 12/31 Revenues earned during December included $20,500 cash and $2,400 on account. 12/31 Paid employees salaries $3,200 and building rent $500. (Note: record this as a compound entry) 12/31The business received $1,160 for auto screening services, to be performed next month 12/31 Paid cash dividends of $5,000 to stockholders

The business used the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Equipment; Accumulated Depreciation-Equipment; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Common Stock; Retained Earnings; Dividends; Income Summary; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; Depreciation Expense- Equipment

Following is adjusting data: Office Supplies used during December $700 Depreciation for December $150 One month of insurance has expired Accrued Interest Expense - $120

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Following are requirements for this assignment: 1. Prepare the journal entries for transactions and post to T accounts 2. Prepare an unadjusted trial balance 3. Prepare necessary adjusting journal entries and post to T accounts 4. Prepare an adjusted trial balance 5. For Washington Quality Automotive at December 31, Year 1, and for the month then ended, prepare Multiple-step income statement Statement of Retained Earnings Classified balance sheet in report form 6. Prepare closing entries and post to T accounts 7. Prepare a post-closing trial balance

Can someone help me please? I need help desperately.