Charli retired after $20$ years of working in the logistics industry. Charli decides it would be fun to become a dog groomer

and open her own shop called $$Chali$\text{'}$s Grooming.$$ She will run the business out of her home for the first couple of

months while she identifies a new location for her store.

Since her prior career included years of logistics$,$ she is also going to operate a consulting practice where she will help

others create a grooming practice. She will charge a flat fee or a per hour charge. Her consulting practice will be

recognized as service revenue and will provide additional revenue while she develops her grooming practice.

She obtains a groomer's license after the required training and is ready to open her shop on August $1.$ The following are

the transactions from the first month of business:

Aug. $1$ Charli issues shares of common stock in exchange for $$70,000$ cash.

Aug. $3$ Charli purchases grooming equipment for $$45,000$; $$37,500$ was paid immediately with cash, and the

remaining $$7,500$ was billed to Charli with payment due in $30$ days. She decided to buy used

equipment because she was not sure if she truly wanted to run a grooming business. She assumed

that she will replace the used equipment with new equipment within a couple of years.

Aug. $6$ Charli purchases supplies for $$300$ cash.

Aug. $10$ Charli provides $$4,000$ in services to a customer who asks to be billed for the services.

Aug. $13$ Charli pays a $$75$ utility bill with cash.

Aug. $14$ Charli receives $$3,200$ cash in advance from a customer for services not yet rendered.

Aug. $16$ Charli distributed $$150$ cash in dividends to stockholders.

Aug. $17$ Charli receives $$5,200$ cash from a customer for services rendered.

Aug. $19$ Charli paid $$2,000$ toward the outstanding liability from the August $3$ transaction.

Aug. $22$ Charli paid $$4,600$ cash in salaries expense to employees.

Aug. $28$ The customer from the August $10$ transaction pays $$1,500$ cash toward what is owed.

Requirement #$1$ Record the journal entries required for all of the transactions that occurred in August. Make sure they

are neat, legible and organized. Make sure to reference each entry by date. Any and all calculations

that need to be done to get numbers$/$amounts $($if needed$)$ must be shown in a description below the

journal entry.

Requirement #$2$ Post journal entry information to the ledger as represented by T$-$accounts. Any account that has more

than one transaction needs to have a final balance calculated. This happens by taking the difference

between the debits and credits in an account. Make sure to reference each amount back to the

correct J$/$E $($use the date as reference$).$

Requirement #$3$ Prepare an unadjusted trial balance IN GOOD FORM.

On August $31,$ Charli has the following transactions requiring adjustment.

Aug. $31$ Charli took an inventory of supplies and discovered that $$250$ of supplies remain unused at the end of

the month.

Aug. $31$ The equipment purchased on August $3$ depreciated $$2,500$ during the month of August.

Aug. $31$

Charli performed $$1,100$ of services during August for the customer from the August $14$ transaction.

Aug. $31$ Reviewing the company bank statement, Charli discovers $$350$ of interest earned during the month of

August that was previously uncollected and unrecorded. As a new customer for the bank, the interest

was paid by a bank that offered an above$-$market$-$average interest rate.

Aug. $31$ Unpaid and previously unrecorded income taxes for the month are $$3,400.$ The tax payment was to

cover his federal quarterly estimated income taxes. He lives in a state that does not have an individual

income tax

Requirement #$4$ Record the adjusting journal entries required for all of the above transactions. Make sure they are

neat, legible and organized. Make sure to reference each entry $($use AJE #$1,$ AJE #$2,$ etc$).$ Any and all

calculations that need to be done to get numbers$/$amounts $($if needed$)$ must be shown in a description

below the journal entry.

Requirement #$5$ Post adjusting journal entry information to the ledger as represented by T$-$accounts. Continue with

the prior T$-$accounts and create any new ones as needed. Make sure to reference each amount back

to the correct J$/$E $($use the same scheme as mentioned in Requirement #$4).$

Requirement #$6$ Prepare an adjusted trial balance IN GOOD FORM. Continue with the unadjusted trial balance and

simply add $2$ new columns for the adjusted amounts and any new account rows if needed.

Requirement #$7$ Prepare the income statement, statement of retained earnings, and a classified balance sheet with all

accounts in the proper classification. Make sure they are all in good form and readable. Remember,

you are creating the statements for $3$rd party users, not youself. All statements must be IN GOOD

FORM.

Requirement #$8$ Prepare the closing journal entries. Make sure they are neat, legible and organized.

Requirement #$9$ Post closing journal entry information to the ledger as represented by T$-$accounts. Continue with the

prior T$-$accounts and create any new ones as needed. Make sure