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Comprehensive Accounting Cycle Problem On December 1st Curt Williamson began Automotive. The following information about December's transactions, accounts, and adjustment data is available. an auto

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Comprehensive Accounting Cycle Problem On December 1st Curt Williamson began Automotive. The following information about December's transactions, accounts, and adjustment data is available. an auto repair shop, Williamsons Quality Transactions Williamson contributed $50,000 cash to the business in exchange for capital. Purchased $10,800 of equipment paying cash. Paid $4,500 for a 9-month insurance policy starting on December 1. Paid $18,000 cash to purchase land to be used in operations. Dec. 1 Dec. 1 Dec. 1 Dec. 9 Dec. 10 Purchased office supplies on account, S3,000. Dec. 19 Borrowed $28,000 from the bank for business use. Williamson signed a note payable to the bank in the name of the business. Dec. 22 Paid $800 for advertising expenses. Paid $1,000 on account. Dec. 26 The business received a bill for utilities to be paid in January, $280. Dec. 28 Dec. 31 Revenues earned during the month included $17,500 cash and $2.700 on Dec. 31 Paid employees' salaries $3,600 and building rent $700. Record as a compound entry The business received $1,440 for auto screening services to be performed next Dec. 31 month. Dec. 31 Williamson withdrew cash of $3,000 Accounts Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation-Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable: Capital; Withdrawals; Service Revenue; Salaries Expense; Rent Expense: Utilities Expense; Advertising Expense; Supplies Expense; Insurance Expense; Interest Expense; and Depreciation Expense-Equipment. I Adjustment Data Office Supplies used during the month, $600. a. b. Depreciation for the month, $180. c. One month insurance has expired. d. Accrued Interest Expense, $75. Requirements 1. Indicate the effect of each transaction and the balances after each transaction, using the following heading. (5 marks) Asses: Cash, Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Land Liabilities: Accounts Payable: Utilities Payable; Unearned Revenue: Notes Payable Owner's Equity Capital: Withdrawals; Service Revenue: Salaries Expense: Rent Expense; Utilities Expense: Advertising Expense. 2. Prepare the journal entries and post to the T-accounts. (2.5 marks) 3. Prepare an unadjusted trial balance. (2.5 marks) 4. Prepare the adjusting entries and post to the T-accounts. (2.5 marks) 5. Prepare an adjusted trial balance. (2.5 marks) 6. Prepare the income statement, the statement of owner's equity, and a classified balance sheet

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