BEFORE YOU START THE CASE STUDY, complete the following 3 STEPS: 1. CREATE T ACCOUNTS for each account in the Chart of Accounts for case study 3. 2. Enter the following OPENING BALANCES in the T Accounts you created AND the Ledger Accounts: Cash $50,000 Debit Credit o Common Stock - $25,000 Retained Earnings - $25,000 Credit Balance Sheet Accounts Sassafras Sis, Inc Chart of Accounts Income Statement Accounts 1 Assets 4 Revenue 11 Cash Debit 41 Revenues Credit 12 Accounts Receivable Debit 13 Supplies Debit 5 Expenses 14 Prepaid Insurance Debit 51 Expenses Debit 15 Office Equipment Debit 16 Accum. Depreciation-Office Eq. Credit 2 Liabilities 21 Accounts Payable Credit 22 Accruals (le taxes payable) Credit 23 Unearned Revenue Credit 3 Stockholders' Equity 31 Common Stock 32 Retained Earnings 33 Dividends Credit Credit Debit Sassafras Sis, Inc is a pool design firm based in Ozona, Florida. Based on the following fact pattern complete the entire accounting cycle case study for May. 20XX. 1 Record the following entries for the month of May in the General Journal (GJ) pages 11 and 12 May 1 Invested $25,000 cash in exhange for Common Stock 1 Paid cash $1,200 for 12 month insurance policy 3 Paid cash for various expenses $3,000 5 Purchased supplies $2,000 on account. 10 Paid cash for office equipment 53,600 17 Paid $1,000 cash to creditor 20 Revenue from designing several pools $12,000. Received $7,000 cash, remainder on account 22 Received 5900 cash from customer for future work 24 Received $1,000 cash from customer paying down account 25 Social media "likes" exceed 5000. Marketing anticipates a sales bump of $1 per ke 30 Board of Directors declared and paid cash Dividend $1,000 EXCLUDE THE DESCRIPTION ALWAYS LEAVE A SPACE BETWEEN SEPARATE TRANSACTIONS 2 Post to General Ledger (G) 3 Produce the Unadjusted Trial Balance 4 Record Adjusting Entries on Journal Page 3 May 31 Supplies on hand at month end $250 31 Office Equipment Depreciates staright line over 3 years 31 Record Insurance expense for month end 31 Earned $300 of Unearned Revenue 31. Five hours design work on long term contract, $100 per hour 31 Record tax expense. Tax rate 40% 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 Entry Type Periodic Inventory expense Estimated Expense Deferred Expense (You Prepaid an expense) Deferred Revenue (Customer Prepaid you) Accrued Revenue Accrued Expense Record on Journal Page 4 the dosing of all temporary accounts directly into Retained Earnings 10 Post to General Ledger (GL) 11 Produce the Post Closing Trial Balance