After working for a large public accounting firm for $8$ years, Juan, Frieda and Wangshu decided to forge out on their own and formed JFW Associates, starting their business on September $1,2023.$ 

Here are the transactions for JFW Associates in September, its first month of operations.

$1$ Sep. $2$ Friends and family contributed $$60,000$ to the business by buying the private stock of JFW Associates Services.

$2$ Sep. $4$ Purchased an annual insurance policy for $$3,600.$ JFW paid $$1,000$ immediately, with the balance due in $30$ days.

$3$ Sep. $5$

Purchased a used automobile that will be used to visit clients for $$15,500$ on account.

$4$ Sep. $7$ Purchased supplies for $$520$ cash.

$5$ Sep. $10$ Issued check for $$1,700$ to pay rent for September.

$6$ Sep. $14$ Performed consulting services for $$17,750.$  Client paid $$10,000$ upon completion of project on September $14$ and was billed for the balance of services.

$7$ Sep. $15$ Received $$5,000$ from a customer as an advance on consulting services to be provided Sept $15–$ Nov $30(2\mathrm{.}5$ months of service$).$

$8$ Sep. $19$ Client paid remainder of balance from September $14$ transaction.

$9$ Sep. $20$ Reviewed the financial statements of an acquisition target for a client and provided a summary report of analysis. Billed the client for $10$ hours of work at $$500/$hr$.$

$10$ Sep. $20$ Hired a specialist to assist with consulting project to review acquisition target. Paid wages to specialist for $5$ hours of valuation analysis at rate of $$300/$hour$.$

$11$ Sep. $27$ Received an electricity bill for September for $$360,$ payable in $30$ days.

$12$ Sep. $30$ Obtained a small business loan from bank for $$5,000$ at a rate of $10\%$ to be used as

working capital. Loan $($principal and interest$)$ is to be repaid in $6$ months.

$13$ Sep. $30$ The JFW principals withdrew $$2,000$ as a dividend $($single entry for $$2000).$

Adjustments

A$-1.$ Expired insurance.

A$-2.$ Depreciation of automobile, $$250.$

A$-3.$ Supplies remaining at the end of the month, $$340.$

A$-4$  Earned revenue for delivery of consulting services from Sept $15-30$ under Sept $15,2\mathrm{.}5$ month consulting contract. $($revenue is earned straight$-$line$).$

For any expiration $–$ assume a full month $($do not use partial month$)–$ ie Insurance. Do Not record accrued interest on the small business loan as $1$ day is not material $($loan obtained the last day of the month$).$

Instructions

$1.$ Journalize all September transactions in the general journal. Use only account names appearing in the general ledger. $($include date with each transaction as in example for transaction #$1$ Common Stock and Cash$).$ You may skip journal entry descriptions.

$2.$ Post each journal entry recorded in in instruction #$1$ above to the general ledger. The first transaction on September $1$st has been journalized in the general journal and posted to the general ledger as an example.

$3.$ Prepare an unadjusted trial balance at September $30,2023.($HINT: Total $$111,210)$

$4.$ Journalize and post adjusting journal entries $($label in general ledger as A$-1,$ etc$)$ based on the adjustments data provided.

$5.$ Prepare an adjusted trial balance at September $30,2023.($HINT: Total $$111,460)$

$6.$ Prepare a set of financial statements for JFW Associates for the month of September. $($HINT: Total Assets $$104,920)$

$7.$ Journalize and POST closing entries $($label in general ledger as C$-1,$ etc$)$ for September.

$8.$ Prepare a post$-$closing trial balance at September $30,2023.($HINT: Total $$105,170)$