ACCT 3001 Accounting Cycle Review Problem Instructions and Requirements Using the workpapers provided, complete the following: 1) Prepare journal entries to record each December transaction for Green River Computer Consultants. 2) Post the journal entries from requirement 1 to the General Ledger. 3) Prepare an unadjusted trial balance as of December 31, 2022. 4) Journalize and post all necessary adjusting entries. 5) Prepare an adjusted trial balance as of December 31, 2022. 6) Prepare a single-step income statement for the year ended December 31, 2022 7) Prepare a statement of retained earnings for the year ended December 31, 2022. 8) Prepare a classified balance sheet as of December 31, 2022. 9) Journalize and post the necessary closing entries. 10) Prepare a post-closing trial balance as of December 31,2022. NOTE: - All work must be submitted in handwriting on the working papers provided. See Moodle for the Excel document containing working papers. - Assignments are due at the beginning of class on the due date. - Make sure to staple your solution in the proper order. 1. General Journal 2. Ledger 3. Unadjusted Trial Balance 4. Adjusted Trial Balance 5. Post-Closing Trial Balance 6. Income Statement 7. Statement of Retained Earnings 8. Balance Sheet - General Ledger instructions: 1. Make sure to compute account balances after posting transactions (journal entries, adjusting entries, and closing entries). Highlight the account ACCT 3001 Accounting Cycle Review Problem The following transactions occurred during the Month of December. Date Transaction Dec 1 Purchased equipment, paying $4,000 cash and signing a 2-year note payable for $20,000. The equipment has a 4 -year useful life. The note has a 6% interest rate which is payable on the first day of each following month. Dec 2 Issued 20,000 shares of common stock for $50,000 cash. Dec 3 Paid $3,600 cash for a 12 -month insurance policy effective December 1 . Dec 3 Paid the first 2 (December and January 2023) months' rent for an annual lease of office space for $4,000 per month. Dec 6 Paid $3,800 for supplies. Dec 9 Visited client offices and agreed on the terms of a consulting project. Green River will bill the client, Connor Productions, on the 20th of each month for services performed. Dec 10 Collected $1,200 cash on account from Milani Brothers. This client was billed in June when Green River performed the service. Dec 13 Performed services for Fitzgerald Enterprises. This client paid $1,120 in advance last month. All services relating to this payment are now completed. Dec 14 Paid $400 cash for a utility bill. This related to November utilities that were accrued at the end of November. Dec 16 Met with a new client, Thunder Bay Technologies. Received $12,000 cash in advance for future services to be performed. Dec 18 Paid semi-monthly salaries for $11,000. Dec 20 Performed services worth $28,000 on account and billed customers. Dec 20 Received a bill for $2,200 for advertising services received during December. The amount is not due until January 15. Dec 23 Performed the first phase of the project for Thunder Bay Technologies. Recognized $10,000 of revenue from the cash advance received December 16 Dec 27 Received $15,000 cash from customers billed on December 20. On December 31 , the following information is available. Use this information to record the Adjusting Journal Entries. Date these entries 12/31. 1. Adjustment of prepaid insurance. 2. Adjustment of prepaid rent. 3. Supplies used, $1,250. 4. Equipment depreciation, $500 per month. 5. Accrual of interest on note payable. (Use the interest formula PRT ) 6. Salaries for the second half of December, $11,000, to be paid on January 1. 7. December utilities expense, $800 is due January 10 . 8. Income tax for December, $1,200, will be paid in January. ACCT 3001 Accounting Cycle Review Problem Background information: Chart of Accounts: The chart of accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense. Account Balances on December 1, 2022 The Ledger shows the following account balances. These balances are shown in the Ledger accounts as Beginning Balance. The company underwent a major expansion in December. New staff was hired, and more financing was obtained. Green River conducted the following transactions during December 2022. Accounts are adjusted monthly. Green River's year end is December 31