Accounting Cycle Project

Using the chart of accounts below, and the included T-account sheets, trial balance, and worksheets, complete the following

Account Name	Account Number
Cash	100
Supplies	110
Prepaid Insurance	120
Prepaid Rent	130
Accounts Payable	200
Wages Payable	210
Interest Payable	220
Notes Payable	230
Common Stock	300
Retained Earnings	310
Service Revenue	400
Wages Expense	500
Operating Expenses	510
Interest Expense	520
Insurance Expense	530
Rent Expense	540
Supplies Expense	550
Dividends	600
Income Summary	700

1.) Record journals for the following transactions:

You opened your business on January 1, 2022. You decide that you want to close your books monthly. The following transactions occurred:

a.) January 1 - Started business by issuing $20,000 of stock to its owners in exchange for cash

b.) January 1 - Took out a $10,000 loan. The interest is 6%. The entire principal and interest are due October 1

c.) January 1 Paid Rent for the entire year. Rent is $500 per month

d.) January 1 Purchased $500 of supplies on account

e.) January 9 - Paid 5 employees for one weeks pay. Employees work Monday through Friday, 8 hours a day, five days a week (no overtime). Each employee makes $15 per hour.

f.) January 12 - Paid $200 of the amount owed for supplies in c.) above

g.) January 13 - Earned $57,000 in service revenue on account

h.) January 15 - Paid $1,800 for a one-year insurance policy beginning that day

i.) January 16 - Paid employees for one weeks pay.

j.) January 20 - Collected $35,500 of its accounts receivable

k.) January 23 - Paid employees for one weeks pay.

l.) January 30 - Paid $2,000 cash for operating expenses

m.) January 30 - Paid employees for one weeks pay.

n.) January 31 - Declared and paid $250 dividends

2.) Complete the unadjusted trial balance

3.) Record the following adjusting entries

o.) Recorded an adjusting entry for accrued interest(See entry b.)

p.) Recorded an adjusting entry for the amount of insurance used during the year. (see entry h.)

q.) Recorded an adjusting entry to reflect that only $100 of supplies were left on January 31 (See entry d.)

r.) Recorded adjusting entry for payroll; January 31stwas on Tuesday

s.) Adjusting entry for rent expense (see entry c.)

4.) Complete the adjusted trial balance