Annabug Designs, Inc

Chart of Accounts

Balance Sheet Accounts

Income Statement Accounts

Normal

Debit

Debit

Debit

Debit

Debit

Credit

$4$ Revenue

$41$ Revenue

$5$ Expenses

$51$ Insurance Expense

$52$ Supplies Expense

$56$ Depreciation Expense

Normal

Credit

Debit

Debit

Debit

$2$ Liabilities

$21$ Accounts Payable

$23$ Unearned Revenue

Credit

Cash

Accounts Recelvable

Supplies

Prepaid Ins

Credit

Accum Depr$-$Equip

ense

Debit

$1$ Assets Normal

$11$ Cash Debit

$12$ Accounts Recelvable Debit

$13$ Supplies Debit

$14$ Prepaid Insurance Debit

$15$ Equipment Debit

$16$ Accum Depr$-$Equip Credit

Liabilities

$23$ Unearned Revenue

$3$ Stockholders' Equity

$31$ Common Stock

$32$ Retained Earnings

Credit

$33$ Dividends

Credit

Debit

Annabug Designs, Inc designs personalized Ladybug motif bumperstickers. Baseed upon the following fact pattern complete the entire accounting cycle for the month of December, $20$XX

$1$ Record the following entries for the month of December in the General Journal $($GJ$)$ pages $J1$ and $J2$

Dec

$1$ Invested $$28,800$ cash in exhange for Common Stock

$1$ Paid cash $$28,800$ for $12$ month insurance policy that money could buy

$2$ Purchased office equipment for $$86,400$ on account

$10$ Billed client $$2400$ for design work

$20$ Purchased supplies worth $$2400$ on account

$22$ Received $$2400$ cash from customer for future work

$29$ Paid cash to creditors $$2400$

$29$ Received $$2400$ cash from customer paying down account.

$30$ Board of Directors declared and paid cash Dividend $$2400$

EXCLUDE THE DESCRIPTION

ALWAYS LEAVE A SPACE BETWEEN SEPARATE TRANSACTIONS

$2$ Post to General Ledger $($GL$)$

$3$ Produce the Unadjusted Trial Balance

$4$ Record Adjusting Entries on Journal Page $3$

Dec $,31$ Supplies on hand at month end $$0$

$31$ Office Equipment Depreciates staright line over $3$ years

$31$ Record insurance expense for month end

$31$ Earned $$2400$ of Unearned Revenue

$31$ Billed client for $20$ hours design work at $$240$ per hour

$5$ Post Adjusting Entries to the General Ledger $($GL$)$

$6$ Produce the Adjusted Trial Balance

$7$ Produce an Income Statement, Retained Earnings Statement and Balance Sheet.

$8$ Record on Journal Page $4$ the closing of all temporary accounts directly into Retained Earnings

$9$ Post to General Ledger $($GL$)$

$10$ Produce the Post Closing Trial Balance