Background: Green Thumb Corporation was founded in 2014 by Erica Green. The company provides plant maintenance services to businesses such as medical offices, professional services firms and corporations. In the last couple of years the business has really taken off as decor trends shifted to real rather than artificial plants, and individuals wanted the health benefits of plants in enclosed buildings. Green Thumb has part time employees, mostly college students, who go into the buildings to water, fertilize and replace plants as necessary. To date Erica has been doing all the accounting for the company, but since she really prefers working with plants to computers, she hired you as an accounting intern in December 2019 to assist with the month's accounting, close the books and produce the year-end accrual basis financial statements that conform to GAAP.

Required:

Erica has just provided you with the trial balance at 11/30/19. Assume this trial balance has been correctly prepared. Use the balances in the 11/30/19 Trial Balance tab as your beginning balances for all T-Accounts. Green Thumb's year end is December 31st.

(A) Using the Excel General Journal spreadsheet in this file, record the December transactions listed below AND the necessary year end adjusting journal entries. Label the transactions in numeric sequence corresponding to the numbers below. Each of the transactions below requires a journal entry. Note that there is a debit and credit control total at the top of the general journal so that you can check after each entry to see if you are in balance.

1. Issued an additional 50,000 shares of common stock on December 2. The stock was sold to Erica's parents for $100,000, which equals the par value of the stock.

2. Received cash payment of $14,000 for outstanding accounts receivable on December 3.

3. Purchased a new truck for $26,000 cash on December 3.

4. Provided services for cash of $12,000 on December 3.

5. Provided services on credit for $16,000 on December 10.

6. Received bill and paid utilities of $900 on December 11.

7. Paid employee salaries of $8,700 on December 11.

8. Declared and paid dividends to stockholders of $500 on December 11.

9. Incurred legal fees of $2,000 on December 13, but did not pay for these services.

10. Collected $14,000 from customers on December 15.

11. Collected $3000 on December 15th for plant maintenance services to be provided 12/15/19 to 1/15/20.

12. Sold land with cost of $100,000 for $106,000 cash on December 15.

13. Paid $18,000 for a three-year insurance policy on December 15 with coverage beginning on 12/15/19

14. Paid $1,000 on December 20 related to legal legal fees incurred on December 13.

15. Paid $900 for miscelaneous supplies on December 20. Supplies are expensed upon purchase.

Erica also provided you the following information that she thought may be helpful in preparing the year-end financial statements.

16. As of December 31, Green Thumb has not recorded any insurance expense for the new policy purchased in #13 above.

17. Green Thumb depreciates its equipment at a rate of $7,000 per year. No depreciation expense has been recorded yet for 2019.

18. For the service revenue collected on December 15th (#11 above), record the appropriate amount of revenue for 2019.

19. Erica let you know that she provided $2,900 of services to a customer in December that had not yet been billed.

20. Green Thumb has incurred salaries of $3,000 at the end of the year. The next payroll date is 1/2/20. (Ignore payroll taxes and withholdings)

Note: Do not prepare the closing journal entries at this point! Closing journal entries should be prepared as part of step C below.

(B) "Post" journal entries 1-20 from the General Journal to the Excel spreadsheet of T-accounts in this file. All necessary T-accounts have been provided. This should be completed through the use of Excel formulas rather than retyping the numbers in your T-accounts. Please also place the number of each transaction next to each journal entry (see transaction 1 in the Excel T-Account sheet for an example) and be sure to create formulas so that each T accounts automatically calculates its ending balance (see the Cash t-account for an example). TIP: Set up your spreadsheet to have debit and credit control totals so that you can check after each entry to see if you are in balance.

(C) In Excel, prepare a balance sheet as of 12/31/19 and a SINGLE-STEP income statement for the year ended 12/31/19. This should be completed through the use of Excel referencing formulas rather than retyping the ending balances from your T-accounts in the financial statements. (Note that at this point your balance sheet will be out of balance because Retained Earnings hasn't yet been updated!) After you have prepared your balance sheet and income statement, prepare closing entries in the General Journal but do not post them to the T accounts so that the pre-closing ending balances continue to flow to the Income Statement using the Excel referencing formulas. Then the final Net Income amount from your Income Statement should be referenced using Excel formulas to the Statement of Retained Earnings. Once reconciled, your ending Retained Earnings balance should be referenced using Excel formulas back to your 12/31/19 Balance Sheet. You do NOT need to prepare a Statement of Shareholders Equity or Statement of Cash Flows. Income taxes should be ignored.

	Unadjusted Trial Balance
General Ledger Account Name	11/30/19
	Debit		Credit
Cash	37,000
Accounts Receivable	24,500
Prepaid Insurance	0
Equipment	88,000
Accum Depreciation
Land	100,000
Accounts Payable			4,500
Unearned Service Revenue			0
Salaries Payable			0
Long Term Notes Payable			16,000
Common Stock			60,000
Retained Earnings			97,200
Dividends
Service Revenue			165,000
Gain on Sale of Land
Depreciation Expense
Insurance Expense	4,500
Legal Fees Expense
Supplies Expense	1,400
Salaries Expense	82,000
Utilities Expense	5,300
Total	342,700		342,700	0.00	Control totals
Note: All the accounts in this trial balance
will be used. No additional accounts are needed.