Assume there is a small shoe store in your neighborhood with a single owner. The owner started

the business on December $1,2021,$ and sells two types of shoes: a comfortable sneaker that is

something athletes would purchase, and a comfortable dress shoe that looks dressy but has the

comfort of a sneaker. The name of the business is The Shoe Horn. Complete tasks A and B that

follow, using the detailed instructions for each. Following is a list of all transactions that

occurred during December $2021.$

a$.$ Dec. $1$ Jack Simmons, the owner contributed a $$500,000$ check from his personal account,

which he deposited into an account opened in the name of the business, to start the

business.

b$.$ Dec. $1$ He rented space that had previously been used by a shoe store and wrote check no$.$

$100$ for $$9,000$ for the first six month's rent.

c$.$ Dec. $2$ He paid for installation and phone usage $$300($check no$.101)$

d$.$ Dec. $2$ He paid for advertising in the local paper $$150($check no$.102).$ The ads will all run

in December.

e$.$ Dec. $2$ He purchased $$500$ of office supplies $($check no$.103)$

f$.$ Dec. $3$ He paid $$300$ for insurance for three months $($December $2021,$ January and February

$2022$ using check no$,104).$

g$.$ Dec. $4$ He purchased $800$ pairs of sneakers at $$40$ a pair$-$ on account from Nike $($using

purchase order no$.301).$ Assume the shoe store uses the perpetual inventory system.h$.$ Dec. $5$ He purchased $500$ pairs of dress shoes from Footwear Corp. on account for $$20a$

pair $($using purchase order no$.302).$

i$.$ Dec. $10He$ made a sale on account of $20$ pairs of sneakers at $$100$ a pair, to a local

University $-$ Highland University $($sales invoice number $2000)$ for their basketball

team. Payment terms were $\frac{2}{10}$ net $30.$

j$.$ Dec. $11$ He made a sale on account of $2$ pairs of dress shoes at $$50$ a pair $($sales invoice no$.$

to a local charity, U$.$S$.$ Veterans, that intended to raffle them off at one of their

events.

k$.$ Dec. $12$ He made a sale on account to The Jenson Group of $300$ pairs of dress shoes at $$50$ a

pair, to use as part of an employee uniform. Payment terms were $\frac{2}{10}$ net $30.$

Dec. $14He$ made a cash sale for $2$ sneakers at $$120$ each and $1$ pair of shoes for $$60.$

m$.$ Dec. $14$ He paid the amount owed to Footwear Corp $($check no $105)$

n$.$ Dec. $17$ Highland University returned $2$ pairs of sneakers they had previously purchased on

account.

o$.$ Dec. $18$ He received a check from Highland University in full payment of their balance.

p$.$ Dec. $20$ He made a cash sale to Charles Wilson of three pairs of sneakers at $$120$ each and $1$

pair of dress shoes at $$60.$

q$.$ Dec. $20$ He made a partial payment to Nike for $$20,000($check number $106)$

r$.$ Dec. $27$ Received a check from The Jenson Group in the amount of $$9,000.$

s$.$ Dec. $28$ He paid $$2,000$ of his balance to Nike $($check number $107)$

Enter all of the transactions and complete all of the steps in the accounting cycle assuming a

manual system. Follow the steps to be pefformed using a manual system.

$1.$ Prepare a trial balance.

$2.$ Prepare an accounts receivable schedule and an accounts payable schedule.

$3.$ Prepare adjusting journal entries based on the following information given, record the entries in the appropriate journal, and post the entries.

$-$ There were $$100$ worth of office supplies remaining at the end of December.

$-$ Make an adjusting entry relative to insurance.

$-$ There was a bill received in the mail for utilities expense for the month of December in the amount of $$100$ that is due by January $10,2022.$ Jack Simmons intends to pay it in January.

$4.$ Prepare an adjusted trial balance

$5.$ Prepare closing journal entries, record them in the general journal, and post them.

$6.$ Prepare an Income statement, Statement of Owner$$s Equity, and Balance Sheet.