Adjustments worksheet Income statement and Statement of owners' equity (IS and SOE) Balance sheet Statement of cash flows Post closing trial balance AR and AP subledger recs (recs = reconciliations) Scratch paper Complete the accounting cycle using the journals shown below and on the next page. The general ledger, general journal, accounts receivable subsidiary ledger, and accounts payable subsidiary ledger are created for you in the template file.

General journal entry Dividend declared by the Board of Directors during the year 2,100 Shop Supplies Purchases Journal Lumber Total Date Vendor Inventory 9,130 On Hand Scott's Most Excellent Lumber Massive Building Supply Store Scott's Most Excellent Lumber Massive Building Supply Store Scott's Most Excellent Lumber Massive Building Supply Store Scott's Most Excellent Lumber January 1, 20X1 January 1, 20X1 May 1, 20X1 July 1, 20X1 August 1, 20X1 September 1, 20X1 December 1, 20X1 9,130 3,520 13,695 4,400 18,260 3,520 13,695 4,400 18,260 880 880 4,565 54,450 4,565 45,650 8,800 Sales Journal Customer Date Amount February 1, 20X1 49,500 21,100 39,000 Joe's Bar Frank's Cars Betty's Computers JOAnn's Hair Shop Steve's Transmission Bob's Car Repair Sue's Paint Shop March 1, 20X1 April 1, 20X1 July 1, 20X1 August 1, 20X1 October 1, 20X1 48,300 44,100 46,200 December 1, 20X1 47,300 295,500 Additional Cash receipts journal Common Accounts Paid-in Capital 113,300 Date Description Collections Receivable Stock January 1, 20X1 Stock market 133,500 20,200 Joe's Bar March 1, 20X1 19,800 8,440 19,800 April 1, 20X1 April 1, 20X1 May 1, 20X1 May 1, 20X1 May 1, 20X1 June 1, 20X1 8,440 Frank's Cars Joe's Bar 12,375 12,375 Betty's Computers 15,600 15,600 Joe's Bar 17,325 17,325 5,275 Frank's Cars 5,275 Betty's Computers Frank's Cars 9,750 7,385 13,650 19,320 9,750 June 1, 20X1 July 1, 20X1 August 1, 20X1 September 1, 20X1 September 1, 20X1 7,385 13.650 19,320 17,640 Betty's Computers JoAnn's Hair Shop Steve's Transmission JoAnn's Hair Shop Steve's Transmission JOAnn's Hair Shop 17,640 12,075 12,075 October 1, 20X1 11,025 11,025 October 1, 20X1 November 1, 20X1 November 1, 20X1 December 1, 20X1 16,905 15,435 18,480 11.550 16,905 15.435 Steve's Transmission Bob's Car Repair Bob's Car Repair 18.480 11,550 232.030 365,530 20,200 113,300 Office Cash disbursements ccounts Pavable Prepaid Expense Amount 4,400 Utilities Other Check 101 Date January 1, 20X1 February 1, 2OX1 Vendon Gasoline Marketing Rent ,400 Rick's Rentals 1.470 Garys Gas 1,470 Supply 1,323 Scott's Most Excellent Lumber Massive Building Supply Store Gary's Gas 9.130 3.520 .691 104 9,130 3.520 February 1, 20X1 105 February 1, 20X1 106 February .691 ,20X1 400 20X ar March Rai's Marketing 7 200 108 7,200 109 110 March 1, 20X1 March 1, 20X1 4,020 1.251 Big Insurance Company Gary's Gas Rick's Rentals 34.020 1,251 4, 400 1.348 8.960 8.960 ,400 1,779 April 1, 20X1 April 1, 20X1 113 114 Brea Power and Light Rick's Rentals Garys ls ,400 1.779 M , 20X1 4.400 1,008 3.024 13.695 1.008 117 June 1 118 June 119 Garv's Gas Pink Pages (advertising) Scott's Most Excellent Lumber ck's Rentals RS 20X1 20X1 3,024 13.695 June 20X1 4,400 20X1 14.500 121 June 122 July 1, 20X1 July 1, 20X1 123 14.500 1,130 7.360 1,130 Gary's Gas Brea Power and Light 7,360 4,400 125 TM 126 August 1,20X1 127 August1,20X1 August 1,20 horoboldore 050 1.050 Garvs Gas Rick's Rentals 872 400 872 400 4,400 MS SIVE Building Supply Store OX1 1,544 September 1, 20X1 Rick's Rentals Scott's Most Excellent Lumber Massive Building Supply Store 130 September 1, 20X1 October 1, 20X1 4,400 18.260 4,400 131 18,260 880 132 880 4,400 October 1, 2ox1 October 1, 20X1 134 135 136 November 1, 20X1 137 November 1, 20X1 Brea Power and Light Gary's Gas Homer's Office Supply Rick's Rentals 8.000 1.283 8,000 1,283 1,827 827 400 ,400 1,735 130 November 1 20x1 140 November 1, 20X1 Sharebolders Brea Home and Garden Rick's Rentals Gary's Gas 050 109 4,400 1,367 1,050 1109 December 1, 20X1 December 1, 20X1 4,400 1,367 42 11.333 16.478 34,020 9,885 4.320 208.586 52.800 3.150 16,600 14,500 2.100 Taxes payable Dividends payable The payment to the Big Insurance company is a business insurance policy covering 8 months ended June 30, 20X2 Adjustments 1.070 Ending balance of shop Ending balanoe of office supolies on hand Ending balance of lumber on hand rate plies on hand 830 2 A few notes 3 6.390 36.00% 0.30 1) We are not using a cost of goods sold account. Instead, lumber costs appe ar in lumber expense. 4 $ 6) share dedlared on December 31, 20X1 Adjust prepaid insurance and insurance expense 2) Other than earnings per share, do not use pennies. 3) Use the indirect method in the body of the SCF, and show the direct method as a separate disclosure. General journal entry Dividend declared by the Board of Directors during the year 2,100 Shop Supplies Purchases Journal Lumber Total Date Vendor Inventory 9,130 On Hand Scott's Most Excellent Lumber Massive Building Supply Store Scott's Most Excellent Lumber Massive Building Supply Store Scott's Most Excellent Lumber Massive Building Supply Store Scott's Most Excellent Lumber January 1, 20X1 January 1, 20X1 May 1, 20X1 July 1, 20X1 August 1, 20X1 September 1, 20X1 December 1, 20X1 9,130 3,520 13,695 4,400 18,260 3,520 13,695 4,400 18,260 880 880 4,565 54,450 4,565 45,650 8,800 Sales Journal Customer Date Amount February 1, 20X1 49,500 21,100 39,000 Joe's Bar Frank's Cars Betty's Computers JOAnn's Hair Shop Steve's Transmission Bob's Car Repair Sue's Paint Shop March 1, 20X1 April 1, 20X1 July 1, 20X1 August 1, 20X1 October 1, 20X1 48,300 44,100 46,200 December 1, 20X1 47,300 295,500 Additional Cash receipts journal Common Accounts Paid-in Capital 113,300 Date Description Collections Receivable Stock January 1, 20X1 Stock market 133,500 20,200 Joe's Bar March 1, 20X1 19,800 8,440 19,800 April 1, 20X1 April 1, 20X1 May 1, 20X1 May 1, 20X1 May 1, 20X1 June 1, 20X1 8,440 Frank's Cars Joe's Bar 12,375 12,375 Betty's Computers 15,600 15,600 Joe's Bar 17,325 17,325 5,275 Frank's Cars 5,275 Betty's Computers Frank's Cars 9,750 7,385 13,650 19,320 9,750 June 1, 20X1 July 1, 20X1 August 1, 20X1 September 1, 20X1 September 1, 20X1 7,385 13.650 19,320 17,640 Betty's Computers JoAnn's Hair Shop Steve's Transmission JoAnn's Hair Shop Steve's Transmission JOAnn's Hair Shop 17,640 12,075 12,075 October 1, 20X1 11,025 11,025 October 1, 20X1 November 1, 20X1 November 1, 20X1 December 1, 20X1 16,905 15,435 18,480 11.550 16,905 15.435 Steve's Transmission Bob's Car Repair Bob's Car Repair 18.480 11,550 232.030 365,530 20,200 113,300 Office Cash disbursements ccounts Pavable Prepaid Expense Amount 4,400 Utilities Other Check 101 Date January 1, 20X1 February 1, 2OX1 Vendon Gasoline Marketing Rent ,400 Rick's Rentals 1.470 Garys Gas 1,470 Supply 1,323 Scott's Most Excellent Lumber Massive Building Supply Store Gary's Gas 9.130 3.520 .691 104 9,130 3.520 February 1, 20X1 105 February 1, 20X1 106 February .691 ,20X1 400 20X ar March Rai's Marketing 7 200 108 7,200 109 110 March 1, 20X1 March 1, 20X1 4,020 1.251 Big Insurance Company Gary's Gas Rick's Rentals 34.020 1,251 4, 400 1.348 8.960 8.960 ,400 1,779 April 1, 20X1 April 1, 20X1 113 114 Brea Power and Light Rick's Rentals Garys ls ,400 1.779 M , 20X1 4.400 1,008 3.024 13.695 1.008 117 June 1 118 June 119 Garv's Gas Pink Pages (advertising) Scott's Most Excellent Lumber ck's Rentals RS 20X1 20X1 3,024 13.695 June 20X1 4,400 20X1 14.500 121 June 122 July 1, 20X1 July 1, 20X1 123 14.500 1,130 7.360 1,130 Gary's Gas Brea Power and Light 7,360 4,400 125 TM 126 August 1,20X1 127 August1,20X1 August 1,20 horoboldore 050 1.050 Garvs Gas Rick's Rentals 872 400 872 400 4,400 MS SIVE Building Supply Store OX1 1,544 September 1, 20X1 Rick's Rentals Scott's Most Excellent Lumber Massive Building Supply Store 130 September 1, 20X1 October 1, 20X1 4,400 18.260 4,400 131 18,260 880 132 880 4,400 October 1, 2ox1 October 1, 20X1 134 135 136 November 1, 20X1 137 November 1, 20X1 Brea Power and Light Gary's Gas Homer's Office Supply Rick's Rentals 8.000 1.283 8,000 1,283 1,827 827 400 ,400 1,735 130 November 1 20x1 140 November 1, 20X1 Sharebolders Brea Home and Garden Rick's Rentals Gary's Gas 050 109 4,400 1,367 1,050 1109 December 1, 20X1 December 1, 20X1 4,400 1,367 42 11.333 16.478 34,020 9,885 4.320 208.586 52.800 3.150 16,600 14,500 2.100 Taxes payable Dividends payable The payment to the Big Insurance company is a business insurance policy covering 8 months ended June 30, 20X2 Adjustments 1.070 Ending balance of shop Ending balanoe of office supolies on hand Ending balance of lumber on hand rate plies on hand 830 2 A few notes 3 6.390 36.00% 0.30 1) We are not using a cost of goods sold account. Instead, lumber costs appe ar in lumber expense. 4 $ 6) share dedlared on December 31, 20X1 Adjust prepaid insurance and insurance expense 2) Other than earnings per share, do not use pennies. 3) Use the indirect method in the body of the SCF, and show the direct method as a separate disclosure