COMPREHENSIVE PROBLEM

Business Transactions

December

$1$ Jim starts his business by depositing $$40,000$ cash into his bank account.

$4$ Jim buys equipment of $$20,000$ with $$5,000$ cash and he owes $$15,000$ on account

$8$ Jim buys office supplies of $$1,000$ with cash

$9$ Jim buys an insurance policy of $$1,200$ with cash

$12$ Jim pays rent of $$700$ with cash

$14$Jim performs services and is paid $$6,000$ cash

$17$Jim pays wage expense of $$1,000$ in cash

$19$ Jim buys equipment with cash of $$2,000$

$20$ Jim performs services of $$7,000$ receiving $$2,000$ in cash is owed $$5,000$ on account by the customer.

$22$ Jim makes a $$3,000$ cash payment on account for the equipment he purchased Apr $4$th

$24$Jim pays the telephone bill of $$300$ with cash

$25$Jim buys office supplies of $$800$ on account.

$26$ Jim withdrew $$1,000$ of cash for personal use.

$29$Jim receives partial payment on account from his customer of $$3,000.$

$30$Jim makes a $$4,000$ cash payment on account for the equipment he purchased Apr $4^{th}.$

A$)$ Enter these transaction properly into a general journal

B$)$ Post these transactions properly into the general ledger

C$)$ At $\frac{12}{31},$ Jim obtains the following info needed for adjusting entries. Supplies on hand are $$400.$ Prepaid insurance still remaining to be used the next year is $$1,000.$

Depreciation expense incurred for the year is $$900.$ Jim's employees have earned and are owed $$200$ by $\frac{12}{31}.$ Enter the $4$ adjusting entries into the general journal and post these into the general ledger.

D$)$ Make the $4$ closing entries needed into the general journal and post these to the general ledger.

E$)$ Complete a trial balance after closing entries. Only assets, liabilities, and capital accounts will have a balance.