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D 1. EXCEL Assignment Number 1 KC Inc. began operations on May 1, 2018. The transactions for the first month in business are shown below:

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D 1. EXCEL Assignment Number 1 KC Inc. began operations on May 1, 2018. The transactions for the first month in business are shown below: Chart of accounts The following transaction occurred in May (1) On May 1 our company issued shares common stock exchange for cash. The cash received totaled : $ Tab Color Assets: Red Use this worksheet to create a general journal to record transactions, adjusting and closing entries 250.000 Cash 101 Par value for common stock Use this worksheet to create a general ledger to post transactions, adjusting and closing entries 2 Orange Accounts receivable Prepaid insurance Office supplies 102 Shares of common stock issued 100,000 Use this worksheet to create an unadjusted trial balance Green (2) On May 2, we purchased equipment for cash. The equipment cost: 103 10 Blue Use this worksheet to create an adjusted trial balance 50,000 The estimated useful life of the property is five years. The estimated residual value of the property is: KC Inc. uses the Double-declining balance method for depreciation of equipment. Use this worksheet to create an income statement and a statement of retained earnings 104 Yellow 11 Equipment Accumulated depreciation, equipment Building Accumulated depreciation, building 105 Purple 12 Use teis worksheet to creat a balance sheet 5,000 106 13 Use this worksheet to create a post-closing trial balance Gray (3) On May 3 we purchased a building. We financing the purchase by signing a fifteen year note: 107 14 160,000 The estimated useful life of the building is twenty five years. The estimated residual value of the property is: 108 15 16 16,000 KC Inc. uses the Double-declining balance method for depreciation of the building. The annual interest rate on the note payable is: Liabilities: 17 Accounts payable Interest payable Unearned revenue Notes payable 201 18 5.0% (4) On May 4, we received cash from a customer (ABD inc.) for work to be completed in May and June: (5) On May 9 we purchased office supplies on account for: (6) On May 15 we provided service for a client (XYZ inc.) on account: (7) On May 20, we paid salaries for our staff which totaled: (8) On May 31, we paid for a twelve month insurance policy in advance: 202 19 25,000 203 20 2,200 204 21 10,000 22 7,500 Stockholders' equity: Common stock Paid in capital in excess of par value Retained earnings 23 2$ 1,500 301 302 The following information is available on May 31 25 303 Revenue earned from the May 4 transaction totaled: Office supplies on hand totaled: 26 15,000 27 1,200 Revenue: 28 Service revenue 401 Round all calculations to two decimal places 29 30 Expenses: Salaries expense Depreciation expense, equipment Depreciation expense, building Interest expense Office supplies expense 31 Instructions: 501 32 502 33 1. Record the transactions for May 1 through May 31 in a general Journal using the account names listed in the chart of accounts (red tab). 2. Post the entries to general ledger (orange tab). 3. Prepare an unadjusted trial balance on May 31, 2018 (green tab). 4. Record all necessary adjusting entries in the general journal (red tab). 5. Post the adjusting entries to the general ledger (orange tab). 6. Prepare an adjusted trial balance on May 31, 2018 (blue tab). 7. Prepare and income statement and statement of retained earnings in good form with a proper heading. 8. Prepare a balance sheet in good form with a proper heading. 9. Record the closing entries on May 31, 2018 in the general journal (red tab). 10. Post the closing entries to the general ledger (orange tab). |11. Prepare a post closing trial balance on May 31, 2018 (gray tab). 503 34 504 35 505 36 37 38 39 40 41 42 43 44 General Ledger (+ Student information Unadjusted trial balance Balance sheet General Jounral Adjusted trial balance IS and BS Post closing trial balance

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