Background

On December $1,2022,$ you were hired as the assistant accountant for Dan's Diamonds Ltd$.,$ a small company located in Winnipeg Manitoba. The owner of the company, Dan Drew, opened the company one year ago and hired Linda, an in house accountant$/$manager to look after the bookkeeping and help with the finances. Dan hired you to help Linda because of your training and wanted you to take over the bookkeeping while Linda starts more of the store management for him.

It is now December $28$ and Dan came to you today at lunch time and told you that Linda is sick and unable to come to work. He needs you to help get the financial records ready to send to the auditor.

He gave you the opening trial balance and a list of the transactions for December that related to the sales and operations. He also gave you information for accruals and other items that need to be posted before the books are completed for the year.

After finishing your lunch you head back to your office to complete the tasks ahead of you.

Required:

Dans Diamonds Ltd$.$

Unadjusted trial balance

December $1,20$X$2$

Cash

Accounts receivable

Inventory

Prepaid rent

Prepaid insurance

Equipment

Accumulated amortization

Accounts payable

Bank loan

Unearned revenue

Common shares

Retained earnings

Sales

Insurance expense

Office supplies

Payroll expense

Legal expenses

Shipping expense

Telephone expense

Rent expense

Depreciation

Income tax expense

$15,600$

$36,000$

$24,000$

$8,000$

$10,000$

$45,000$

$9,000$

$5,600$

$25,000$

$7,400$

$1,000$

$35,000$

$240,000$

$323,000$

$323,000$

Record the transactions for the month of December using proper journal entries

Using the journal entries, record T accounts for all accounts Record the adjusting entries for the year at December $31$

Complete the T accounts with the adjusting entries

Create the final trial balance

Create the balance sheet, income statement, statement of changes in equity, and the cash flow statement using proper form