Alex and Hagi decided to open a home cleaning service company, H@L .,. The following information is a partial list of transactions from H@L Inc.

January 1- Alex and Hagi each donated $ 25.000 in exchange for common stock to start the business. March 3- H@L Inc., paid $ 3.000 cash for a two-year insurance policy that was effective immediately. March 15-The Company purchased $8.000 of supplies on account.

April 5- The Company purchased some cleaning equipment for $10.000 cash. The equipment should last for five years with no residual value. H@L company will take a full year of depreciation in 2020.

May 1-H@L Inc., purchased a years worth of advertising in a local newspaper for $ 1.200 cash. September 1- The Company obtained a nine-month loan for $ 15.000 at 5% from Do Not Trust Bank, with interest and principal payable on June 2021.

December 31- The Company paid $ 5.000 of accounts payable owed from transaction 3.

December 31- The Company earned service revenues of $ 26.225, of which $23.225 were on account.

Note

The company had $2.000 of the supplies still on hand at the end of the year.

Requirements:

1- Give the journal entries for the transactions: include any adjusting entries.

2- Post the journal entries to T accounts, prepare an adjusted trial balance at December 31, 2020.

3- Prepare the income statement, and the balance sheet at December 31, 2020. Then, prepare the closing entries.

GOOD LUCK

DR CR H@L Co, (Unadjusted) Trial Balance December 31, 2020 Amount Net Amount Account Name Debit Credit Debit Credit TOTAL ADJUSTMENTS DR CR HOL Co. (Adjusted Trial Balance December 31, 2020 Amount Debit Credit Net Amount Debit Credit Account Name TOTAL HOL Corporation Income Statement For the Year Ended December 31, 2020 A-Gross Sales B- Sales Deductions (2) G Net Sales D-Cost of Goods Service) Sold) Gross Profit or los E- Operating Expense (-) Operating Profit or los -Income and Profit From Other Operations G-Expenses and Loss From Other Operations (0) - Finance Expenses Income or loss for the Period Net Profit or loss for the Period H@L. Corporation Balance Sheet At December 31, 2020 Assets I-Current Assets II. Noncurrent Assets Total Assets Liabilities and Shareholders' Equity Short Term Liabilities IV-Long Term Liabilities V-Shareholders' Equity Total Liabilities and Shareholders' Equity