1. Complete the bank reconciliation and record any necessary journal entries in the general journal.
2. Complete the worksheet.
3. Prepare month end adjusting journal entries and record in the general journal.
4. Post the journal entries to the T-Accounts.
5. Prepare an adjusted General Ledger Trial Balance.

business transactions

December 1, 2018	Deposit Ticket 1	Nick Roberts invested capital in his new business venture by depositing money into an interest bearing business checking account.	$10,000.00
December 1, 2018	Deposit Ticket 1	Nick borrowed from the local bank. It is a 5-year note, 10% interest.	$20,000.00
December 2, 2018	Check Number 100	Nick paid cash for a trailer listed on Craig's list to haul his lawn equipment.	$8,000.00
December 2, 2018		Nick signed a contract with a cellular company and purchased a smart phone on account to track appointments and make business phone calls (anything less than $300 is considered an expense).	$200.00
December 3, 2018		Nick purchased a lawn tractor at Sears on account.	$4,000.00
December 3, 2018	Check Number 101	Nick paid cash for a hand lawn mower at Menards (anything tangible over $300 is capitalized as a fixed asset).	$750.00
December 4, 2018	Check Number 102	Nick paid for a one-year insurance policy that was effective December 1.	$1,200.00
December 5, 2018		Nick signed a contract with a local graphic center to detail the name of the business on his truck for advertising and received an invoice to be paid.	$700.00
December 5, 2018	Check Number 103	Nick paid cash for supplies (gas cans, rakes, & garbage cans) which he will be using in November for the business. (hint - he is using them right away so they are an expense)	$90.00
December 8, 2018	Check Number 104	Nick filled all of the gas cans and purchased oil for the lawn equipment. (Gas & Oil are recorded as an asset and adjusted at the end of the month for usage).	$400.00
December 9, 2018		Nick advertised his business in the local newspaper. The newspaper invoices their customers monthly.	$100.00
December 10, 2018	Invoice 001	Nick performed lawn service for The Local Community College campus and its dormitories. The college was invoiced.	$1,000.00
December 11, 2018	Deposit Ticket 2	Nick performed lawn service for The CPA Firm and received cash.	$200.00
December 14, 2018	Deposit Ticket 2	The Insurance Agency gave Nick an advance payment to maintain their lawn. Nick quoted them $300 per service visit.	$900.00
December 15, 2018	Deposit Ticket 2	Nick received partial payment for Invoice 001.	$300.00
December 17, 2018	Invoice 002	Nick performed lawn service for MNO Manufacturing. The company was invoiced.	$400.00
December 19, 2018	Check Number 105	Nick filled all of the gas cans and purchased oil for the lawn equipment.	$230.00
December 19, 2018	Check Number 106	Nick paid the local graphic center for the work they did on his truck.	$700.00
December 22, 2018	Deposit Ticket 3	Nick received payment for Invoice 002.	$400.00
December 24, 2018	Invoice 003	Nick performed lawn service for The Local Community College campus and its dormitories. The college was invoiced.	$950.00
December 28, 2018	Check Number 107	Nick filled all of the gas cans and purchased oil for the lawn equipment.	$375.00
December 28, 2018	Check Number 108	Nick submitted an expense report for business mileage incurred on his personal truck.	$210.00
December 29, 2018	Invoice 004	Nick performed lawn service for a new client, FSC Corporation and sent them an invoice.	$800.00
December 29, 2018	Check Number 109	Nick paid the cell phone bill for the month of December.	$175.00
December 30, 2018	Check Number 110	Nick withdrew cash for personal use.	$1,000.00

Bank Statement

Date	Number	Description	Withdrawals	Deposits	Balance
12/1/2018		Deposit		30,000.00	30,000.00
12/5/2018	101	Check	750.00		29,250.00
12/5/2018	100	Check	8,000.00		21,250.00
12/6/2018	102	Check	1,200.00		20,050.00
12/11/2018	103	Check	90.00		19,960.00
12/12/2018	104	Check	400.00		19,560.00
12/15/2018		Deposit		1,400.00	20,960.00
12/21/2018	105	Check	230.00		20,730.00
12/29/2018		Deposit		400.00	21,130.00
12/30/2018		Bank Service Charge	40.00		21,090.00
12/30/2018	108	Check	210.00		20,880.00

Month-end adjustments

Adjustment NumberAdjustment Description

1 Record the expiration of one month's insurance.

2 Depreciation on Equipment for the month is $400.00.

3 After taking an inventory, it is determined there is $200 of gas and oil on hand at the end of the month.

4 Nick cut the lawn for the Insurance Agency once during the month (refer to the December 14 business transaction).

5 The interest owed for the month is $125.

6 Complete the bank reconciliation and record any necessary journal entries.

Any discrepancies on check amounts are a bank error.