Comprehensive Problem (Algo): Applying all steps in the cycle A dog training business began on December 1 . The following transactions occurred during its first month. December 1 Receives $27,000 cash as an owner investment in exchange for common stock. December 2 Pays $6,840 cash for equipment. December 3 Pays $4,020 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1 . December 4 Pays $1,140 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $1,458 cash. December 8 Pays $235 cash in wages for part-time help. December 9 Provides training services for $2,540 and rents training equipment for $670. The customer is billed $3,210 for these services. December 19 Receives $3,210 cash from the customer billed on Dec. 9 . December 20 Purchases $2,070 of supplies on credit from a supplier. December 23 Receives $1,740 cash in advance of providing a 4 -week training service to a customer. December 29 Pays $1,335 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Distributed a $535 cash dividend to the owner. Information for month-end adjustments follows: December 31 One month of the 12 month, $4,020 insurance policy is expired by December 31 . This teaves $3,685 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,235 of supplies remain of the $2,870 supplies purchased. December 31 The $6,840 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years ( 60 months). The business uses straight-line depreciation to allocate the $6,840 net cost over 60 months. On December 31,1 month of depreciation must be recorded. December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,740 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded. December 31 On December 31, wages of $635 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded. December 31 The business agreed to provide 6 weeks of training services to a customer for a fee of $4,410, or $735 per week. The customer agrees to pay the full $4,410 at the end of 6 weeks when services are complete. By December 31,2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided. Post-closing \begin{tabular}{|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Account } & \multirow{2}{*}{IncludedonPost-closingtrialbalance?} & \multirow{2}{*}{TypeofAccount} & \multicolumn{2}{|c|}{ Post-closing Trial Balance } \\ \hline & & & Debit & Credit \\ \hline \multicolumn{5}{|l|}{ Cash } \\ \hline \multicolumn{5}{|l|}{ Accounts receivable } \\ \hline \multicolumn{5}{|l|}{ Supplies } \\ \hline \multicolumn{5}{|l|}{ Prepaid insurance } \\ \hline Equipment & & & & \\ \hline \multicolumn{5}{|l|}{ Accumulated depreciation - Equipment } \\ \hline \multicolumn{5}{|l|}{ Accounts payable } \\ \hline \multicolumn{5}{|l|}{ Wages payable } \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{|l|} Uvages paydole \\ Unearned revenue \\ \end{tabular}} \\ \hline \multicolumn{5}{|l|}{ Common stock } \\ \hline \multicolumn{5}{|l|}{ Retained earnings } \\ \hline \multicolumn{5}{|l|}{RetainedearningsDividends} \\ \hline \multicolumn{5}{|l|}{DividendsServicesrevenue} \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{|l} Services revenue \\ Rental revenue \\ \end{tabular}} \\ \hline \multicolumn{5}{|l|}{RentalrevenueDepreciationexpense-Equipment} \\ \hline \multicolumn{5}{|l|}{Depreciationexpense-EquipmemWagesexpense} \\ \hline \multicolumn{5}{|l|}{WagesexpenseInsuranceexpense} \\ \hline \multicolumn{5}{|l|}{InsuranceexpeniseRentexpense} \\ \hline \multicolumn{5}{|l|}{RentexpenseSuppliesexpense} \\ \hline & & & & \\ \hline Totals & & & 0 & $ \\ \hline \end{tabular}