Dalton McDonald owns and operates D Mac Trucking Ltd but has no accounting personal to prepare his financial information and has approached your group for assistance. The companys financial year end is December 31 each year. They have provided the following information and transactions for 2022:

Jan 1.

Jan 2.

Feb 1. Mar 30. April 4.

May 5. June 6. June 10. Aug 12. Sept 12. Sept 30. Oct 17. Oct 30. Oct 30.

Balances from 2021 Cash $400,000; Accounts Receivable $250,000; Supplies $205,000; Furniture and Equipment $600,000; Other Creditors $218,000; and Capital $1,237,000. The following assets were received from Dalton McDonald in exchange for capital in the company: cash - $200,000, accounts receivable - $61,000, supplies - $90,000, and furniture- $400,000.

Paid fifteen (15) months rent on a lease rental contract, $450,000. Paid the premiums on the property and peril insurance policies for thirteen (13) months, $100,000. Received cash from clients as an advance payment for services to be provided in the coming months, $350,000. Purchased additional equipment on account from Magic Trucking, $120,000. Received cash from clients on account, $150,000. Paid cash for rental of equipment, $75,000. Paid Magic Trucking a portion of the debt incurred on May 5, $90,000. Recorded services provided on account for the period July 1 Sept 12, $400,000. Paid part-time workers salary, $195,000. Recorded cash from cash clients for fees earned during the first half of year, $390,000. Paid cash for supplies, $40,000. Recorded services provided on account for the period June to July, $190,000.

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Nov 24. Nov 25. Nov 27. Dec 29. Dec 30. Dec 30. Dec 30.

Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $310,000. Received cash from clients on account, $250,000. Paid part-time workers for salary $195,000. Paid telephone bill for the year 2022 $140,000.

Paid electricity bill for the year 2022 $310,000. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $210,000. Recorded services provided on account for October to December 2022, $150,000.

Requirement:

1. Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction:

Account # 11 12 14

15 16 18 21 22

Account Name Cash Accounts Receivables Supplies

Prepaid Rent Prepaid Insurance Furniture and Equipment Other Creditors Salaries Payable

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23 Unearned Fees 31 Capital Stock 41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Insurance Expense

55 Utilities Expense

56 Equipment Rental Expense

57 Income Summary

Postthejournalentriestotheirrespectiveledgeraccounts.

Prepare a trial balance based on the balances derived after completing requirement #2.

The company presented the following adjustments and required you to preparing the adjusting entries in the general journal (Narration required for each journal entry):

Insurance expired during 2022, $95,000.

Supplies on hand on December 31, 2022, $35,000.

Unpaid salary on December 31, 2022, $195,000

Rent not expired on December 31, 2022, $90,000

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v. Unearned fees on December 31, 2022, $50,000.

Post the adjusting entries to their respective ledger accounts already started in requirement # 2.

Prepare the adjusted trial balance.

Prepare all three 2022 financial statements for presentation to Mr. McDonald

Journalize the closing entries and balance off the ledger accounts including the income summary account.

Prepare the post-closing trial balance.