create the following financial statements for J&L accounting, Inc.:

*Balance Sheet,Income Statement,Statement of retained earnings,Post-closing trial balance

Instructions

The following financial statements are provided from the prior accounting period for J & L Accounting, Inc.:

• a) Post-closing trial balance
• b) Balance sheet
• c) Income statement
• d) Statement of retained earnings

J & L Accounting, Inc. Post-Closing Trial Balance December 31, 2014
	BALANCE
ACCOUNT TITLE	DEBIT	CREDIT
Cash, Business Checking	$20,500.00
Accounts Receivable
Prepaid Rent
Vehicles	48,000.00
Accumulated Depreciation, Vehicles		$12,000.00
Equipment	3,600.00
Accumulated Depreciation, Equipment		600.00
Accounts Payable
Common Stock		38,000.00
Retained Earnings		21,500.00
Dividends
Service Revenue
Advertising Expense
Rent Expense
Office Supplies Expense
Telephone Expense
Depreciation Expense
TOTALS	$72,100.00	$72,100.00

J & L Accounting, Inc. Balance Sheet As of December 31, 2014
ASSETS
Cash, Business Checking		$20,500.00
Accounts Receivable		0.00
Prepaid Rent		0.00
Vehicles	$48,000.00
Less: Accumulated Depreciation, Vehicles	12,000.00	36,000.00
Equipment	3,600.00
Less: Accumulated Depreciation, Equipment	600.00	3,000.00
TOTAL ASSETS		$59,500.00
LIABILITIES
Accounts Payable		$0.00
TOTAL LIABILITIES		$0.00
STOCKHOLDERS EQUITY
Common Stock		$38,000.00
Retained Earnings		21,500.00
TOTAL STOCKHOLDERS EQUITY		$59,500.00
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY	$59,500.00

J & L Accounting, Inc. Income Statement For the Month Ending December 31, 2014
REVENUES
Service Revenue		$10,275.00
EXPENSES
Advertising Expense	$2,300.00
Rent Expense	1,000.00
Office Supplies Expense	300.00
Telephone Expense	750.00
Utilities Expense	3,200.00
Depreciation Expense	1,100.00
TOTAL EXPENSES		8,650.00
NET INCOME		$1,625.00

J & L Accounting, Inc. Statement of Retained Earnings For the Month Ending December 31, 2014
Retained Earnings, December 1, 2014	$19,875.00
Add: Net Income	1,625.00
Subtotal	21,500.00
Less: Dividends	0.00
Retained Earnings, December 31, 2014	$21,500.00

1. set up the general ledger accounts for the general ledger and insert the beginning balances for the accounts from the post-closing trial balance. The balances from the post-closing trial balance become the beginning balances of the accounts for the next account period.

DATE	ITEM	POST REF.	DEBIT	CREDIT	BALANCE
DEBIT	CREDIT

1. Journalize the following transactions in the general journal using the following blank form
   1. On January 1, 2015, a payment in cash for $12,000 is made for prepaying rent for the entire year 2015.
   2. On January 4, 2015, accounting services are performed and payment is received in cash for the amount of $1,900.
   3. On January 9, 2015, a payment in cash for advertising is made in the amount of $850.
   4. On January 10, 2015, office supplies are purchased in the amount of $75 with cash.
   5. On January 14, 2015, accounting services are performed and payment is received in cash for the amount of $2,725.
   6. On January 20, 2015, the telephone bill for the amount of $660 is received and paid with cash.
   7. On January 20, 2015, the utilities bill for $2,925 is received. The bill wont be paid until it is due on February 15, 2015.
   8. On January 27, 2015, accounting services are performed on account in the amount of $3,750.
   9. On January 28, 2015, a payment in cash for $1,500 is made for a bill from an advertising agency.
2. Post the general journal entries from the journal to the corresponding general ledger accounts, paying particular attention to the posting being made (debit or credit). Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account.
3. Calculate the balances in the general ledger accounts. To calculate the balances in the ledger accounts, youll need to do the following:

• 1)Add the debits.
• 2)Add the credits.
• 3)Subtract the larger amount from the other, or, alternatively, keep the running balance of the amount in the account and whether its a debit or credit on the ledger.

1. Create an unadjusted trial balance from the balances in the general ledger accounts.
2. Journalize the following adjusting journal entries in the general journal,
   1. Calculate and make the adjustment for the amount of pre-paid rent that has been used.
   2. Make an adjusting journal entry in the amount of $1,000 for depreciation of the vehicles.
   3. Make an adjusting journal entry in the amount of $100 for depreciation of the equipment.
3. Post the adjusting journal entries to the respective general ledger accounts,
4. Calculate the new balances in the general ledger accounts. Create an adjusted trial balance from the balances in the general ledger accounts using the same blank form
5. Create the income statement for J & L Accounting, Inc. using the information from the adjusted trial balance.
6. Create the closing journal entries in the general journal to close the revenue, expense, and dividend accounts to the retained earnings account,
7. Post the closing journal entries to the respective general ledger accounts.
8. Calculate the balances in the general ledger accounts.
9. Create a post-closing trial balance from the balances in the general ledger accounts
10. Create the balance sheet for J & L Accounting, Inc. using the information from the post-closing trial balance..
11. Create the statement of retained earnings for J & L Accounting, Inc. using the ending balance from the statement of retained earnings from the prior period and the net income from the income statement for the January accounting period.