Below are the journal entries recorded by Parker Consulting for October and November 2020. NOTE: These are for your information only: you do not need to do anything with these entries. at GENERAL JOURNAL PAGE CREDIT DATE ACCOUNT POST REF DEBIT 2020 Oct 1 Cash Office Equipment Computer Equipment S. Parker Capital 101 163 167 301 45,000 20,000 8,000 73,000 al ti 2,220 1 Prepaid Insurance Cash 128 101 2.220 3,300 2 Prepaid Rent Cash 131 101 3,300 2,545 9 Computer Supplies Accounts Payable 126 201 UU 2,545 4,800 16 Accounts Receivable Computer Services Revenue 106 403 4,800 875 31 Wages Expense Cash 623 101 875 320 Nov 2 Mileage Expense Cash 676 101 320 2,545 5 Accounts Payable Cash 201 101 2.545 8 4,800 Cash Accounts Receivable 101 106 4,800 4,633 14 Cash Computer Services Revenue 101 403 4.633 106 5,208 23 Accounts Receivable Computer Services Revenue 5,208 2,000 30 S. Parker. Withdrawals Cash 302 101 2,000 Page 4 of 15 Project Data: Sam Parker owns and operates a consulting firm called Parker Consulting. The business began operating in October 2020. Transactions for October and November 2020 have been recorded and posted, Parker Consulting had the following transactions in December 2020. Dec 2 Provided $3.950 consulting services to Gomez Company on account. 3 Paid $1,025 cash to Hillside Mall for Parker Consulting's share of mall advertising costs 4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products. 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co. that Parker Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Parker Consulting 20 Completed a project for Lyn Corporation and received $6,425 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Parker $193 for business automobile mileage. 31 S. Parker withdrew $2,100 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance d. As of December 31, the only employee of Parker Consulting had not been paid for four days of work at $125 per day. e. The computer system, acquired for $8.000 on October 1, is expected to have a five-year life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a four- year life with no salvage value. Page 3 of 15 Submitting Your Project: Submit the hand-prepared project by scanning all written pages (it is not necessary to scan instructions and project data) to a PDF file. Upload this file to the Assignments Drop Box folder in NS Online Assignments. Due Date: March 20, 2021, 11:59 p.m. Grade Impact & Academic Integrity: This homework project will be worth 5% of your overall course grade. No project grades will be dropped--failure to submit a homework project will result in a grade of -- for this assessment. Submitting work copied from another source is a violation of the Academic Dishonesty Policy and will result in a grade of -- for the project. Requirements: 1. Journalize the December transactions for Parker Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry - see the journal entries for October - November as a formatting example 2. Continue with the ending November balances that are already in the ledger. Post the December transactions to the appropriate accounts in the modified ledger and update balances. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $100,616. Consult your instructor if your trial balance does not balance before proceeding with the project. 4. Journalize the adjusting entries to reflect items a through fabove. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2020. Check figure: $102,766. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project. 7. Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 2020. b. Prepare a statement of owner's equity for the three months ended December 31, 2020. c. Prepare a balance sheet as of December 31, 2020. 8. Journalize and post the necessary closing entries for Parker Consulting. 9. Prepare a post-closing trial balance as of December 31, 2020. Page 2 of 15 Below are the journal entries recorded by Parker Consulting for October and November 2020. NOTE: These are for your information only: you do not need to do anything with these entries. at GENERAL JOURNAL PAGE CREDIT DATE ACCOUNT POST REF DEBIT 2020 Oct 1 Cash Office Equipment Computer Equipment S. Parker Capital 101 163 167 301 45,000 20,000 8,000 73,000 al ti 2,220 1 Prepaid Insurance Cash 128 101 2.220 3,300 2 Prepaid Rent Cash 131 101 3,300 2,545 9 Computer Supplies Accounts Payable 126 201 UU 2,545 4,800 16 Accounts Receivable Computer Services Revenue 106 403 4,800 875 31 Wages Expense Cash 623 101 875 320 Nov 2 Mileage Expense Cash 676 101 320 2,545 5 Accounts Payable Cash 201 101 2.545 8 4,800 Cash Accounts Receivable 101 106 4,800 4,633 14 Cash Computer Services Revenue 101 403 4.633 106 5,208 23 Accounts Receivable Computer Services Revenue 5,208 2,000 30 S. Parker. Withdrawals Cash 302 101 2,000 Page 4 of 15 Project Data: Sam Parker owns and operates a consulting firm called Parker Consulting. The business began operating in October 2020. Transactions for October and November 2020 have been recorded and posted, Parker Consulting had the following transactions in December 2020. Dec 2 Provided $3.950 consulting services to Gomez Company on account. 3 Paid $1,025 cash to Hillside Mall for Parker Consulting's share of mall advertising costs 4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products. 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co. that Parker Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Parker Consulting 20 Completed a project for Lyn Corporation and received $6,425 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Parker $193 for business automobile mileage. 31 S. Parker withdrew $2,100 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance d. As of December 31, the only employee of Parker Consulting had not been paid for four days of work at $125 per day. e. The computer system, acquired for $8.000 on October 1, is expected to have a five-year life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a four- year life with no salvage value. Page 3 of 15 Submitting Your Project: Submit the hand-prepared project by scanning all written pages (it is not necessary to scan instructions and project data) to a PDF file. Upload this file to the Assignments Drop Box folder in NS Online Assignments. Due Date: March 20, 2021, 11:59 p.m. Grade Impact & Academic Integrity: This homework project will be worth 5% of your overall course grade. No project grades will be dropped--failure to submit a homework project will result in a grade of -- for this assessment. Submitting work copied from another source is a violation of the Academic Dishonesty Policy and will result in a grade of -- for the project. Requirements: 1. Journalize the December transactions for Parker Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry - see the journal entries for October - November as a formatting example 2. Continue with the ending November balances that are already in the ledger. Post the December transactions to the appropriate accounts in the modified ledger and update balances. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $100,616. Consult your instructor if your trial balance does not balance before proceeding with the project. 4. Journalize the adjusting entries to reflect items a through fabove. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2020. Check figure: $102,766. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project. 7. Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 2020. b. Prepare a statement of owner's equity for the three months ended December 31, 2020. c. Prepare a balance sheet as of December 31, 2020. 8. Journalize and post the necessary closing entries for Parker Consulting. 9. Prepare a post-closing trial balance as of December 31, 2020. Page 2 of 15