After the success of its first two months, Mary Graham has decided to continue operating Echo Systems. $($The transactions that occurred in these months are described in Chapter $2.)$ Before proceeding in December, Graham adds these new accounts to the chart of accounts for the ledger:

Account

Accumulated Depreciation, Office Equipment.. $q,$

Accumulated Depreciation, Computer Equipment $q,$

Wages Payable $q,$

Unearned Computer Services Revenue $q,$

Depreciation Expense, Office Equipment. $q,$

Depreciation Expense, Computer Equipment. $q,$

Insurance Expense $q,$

Rent Expense $q,$

No$.$

$164$

$168$

$210$

$236$

$612$

$613$

$637$

$640$

Computer Supplies Expense. $q,$

$652$

Required

Prepare journal entries to record each of the following transactions for Echo Systems. Post the entries to the accounts in the ledger.

Dec. $3$ Paid $$2,100$ to the Lakeshore Mall for the company's share of mall advertising costs.

$3$ Paid $$1,200$ to repair the company's computer.

$4$ Received $$7,500$ from Alamo Engineering Co$.$ for the receivable from the prior month.

$10$ Paid Carly Smith for six days' work at the rate of $$200$ per day.

$14$ Notified by Alamo Engineering Co$.$ that Echo's bid of $$12,000$ on a proposed project was accepted. Alamo paid an advance of $$3,000.$

$17$ Purchased $$2,310$ of computer supplies on credit from Abbott Office Products.

$18$ Sent a reminder to Fostek Co$.$ to pay the fee for services originally recorded on November $8.$

$20$ Completed a project for Elite Corporation and received $$11,250$ cash.

$24-28$ Took the week off for the holidays.

$31$ Received $$5,700$ from Fostek Co$.$ on its receivable.

$31$ Reimbursed Mary Graham's business automobile expenses of $600$ kilometres at $$1\mathrm{.}00$ per kilometre.

$31$ Graham withdrew $$3,600$ cash from the business.

$2.$ Prepare adjusting entries to record the following additional information collected on December $31,2020.$ Post the entries to the accounts in the ledger.

a$.$ The December $31$ inventory of computer supplies was $$1,440.$

b$.$ Three months have passed since the annual insurance premium was paid.

c$.$ As of the end of the year, Carly Smith has not been paid for four days of work at the rate of $$200$ per day.

d$.$ The computer is expected to have a four$-$year life with no residual value.

e$.$ The office equipment is expected to have a three$-$year life with no residual value.

f$.$ Prepaid rent for three of the four months has expired.

$3.$ Prepare an adjusted trial balance as of December $31,2020.$

$4.$ Prepare an income statement and statement of changes in equity for the three months ended December $31,2020.$

$5.$ Prepare a balance sheet as of December $31,2020.$A

B

C

D

$\backslash$table$[[$CNO$,$Account Title,Debit,Credit$],[101$ C$,$Cash,$$70,340\mathrm{.}00,],[106$ A$,$Account Resivable,$$18,900\mathrm{.}00,],[126$ C$,$Computer Supplies,$$,4,560\mathrm{.}00,],[128$ F$,$Prepaid Insurance,$$,4,320\mathrm{.}00,],[131$ F$,$Prepaid Rent,$$9,000\mathrm{.}00,],[163,$Office Equipments,$$18,000\mathrm{.}00,],[167,$Computer Equipments,$$36,000\mathrm{.}00,],[2011,$Account Payable,,$],[301,$MaryGraham Capital,,$$144,000\mathrm{.}00$