Comprehensive Accounting Project

Four friends decide to open a tax consultancy company on July $1$ st $2023.$

They form a company and name it "Chicago Tax Consultants".

Here are the transactions the company incurs during the month of July:

$\frac{7}{1}$ Owners invest cash $$15,000$ each in the Company against common stock.

$7/1$ Company signs a $2-$year lease to rent a space on Michigan Avenue.

Monthly rent of the space is $$2000,$ payable on the first day of each month starting from $\frac{7}{1}$ and company pays it in cash.

$\frac{7}{1}$ Company purchases Furniture on account for $$10,000,$ payable in $45$ days. It is estimated that the furniture will be used for $5$ years, with no salvage value.

$\frac{7}{1}$ Company purchases a laptop for $$1200$ on account to be used exclusively for the company.

Payment for the computer is due in $45$ days. Estimated life of the laptop is $3$ years with no salvage value.

$\frac{7}{5}$ Company hires two employees. Total salary cost for the two employees is $$1500$ a month, payable at the end of the month.

$\frac{7}{10}$ Company earns revenue of $$5000$ and the client pays in cash.

Close the books on July $31$ st $2023$ by following below requirements $-$

Requirments $-$

$1$ Prepare joumal entries for all transactions

$2$ Post these joumal entries in T accounts

$3$ Close the $T$ scoounts and prepare trial balance

$4$ Prepare the adiusting joumal entries for depreciation on the tho assets in the General dournall shicet

$5$ Post the adjusting joumal entries to $T$ accounts

$6$ Close these T accounts and prepare adjusted trial balance

$7$ Prepare income Statement and Balance Sheet

Prepare closing joumal entries in "General Joumal sheet

$9$ Peat them to $7$ ancounts

$10$ Prepare poskolosing thal balance