Dec 1 On December 1, Ed Egert forms a consulting business, and Gourmet Menus. Gourmet Menus receives $36,000 cash from Ed Egert as an Owner contribution. Dec. 2 Gourmet Menus pays $2,aee cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. Dec 3 Gourmet Menus pays $32,888 cash for equipment. Dec 4 Gourmet Menus purchases $7,6ee of supplies on credit from a supplier, CalTech Supply. Dec 5 Gourmet Menus provides consulting Services and Imediately collects $4,500 cash. Dec 6 Gourmet Menus pays $1,388 cash for December rent. Dec 7 Gourmet Menus pays $1,000 cash for employee salary. Dec. 8 Gourmet Menus provides consulting Services of $1,9ee and rents its test facilities for $6ee. The customer is billed $2,500 for these services. Dec 9 Gourmet Menus receives $2,500 cash from the client billed on December 8. Dec. 10 Gourmet Menus pays CalTech Supply $1,200 cash as partial payment for its December 4 $7,6ee purchase of supplies. Dec. 11 Ed Egert withdraws $see cash from Gourmet Menus for personal use. Dec. 12 Gourmet Menus receives $3,300 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. Dec. 13 Gourmet Menus pays $2,700 cash insurance presiun) for a 24-month insurance policy. Coverage begins on December 1. The company's policy is to record all prepaid expenses in a balance sheet account. Dec. 14 Gourmet Menus pays $420 Cash for supplies. Dec. 15 Gourmet Menus pays $605 cash for December utilities expense. Dec. 16 Gourmet Menus pays $850 cash in employee salary for work performed in the latter part of December Requirement General Journal General Ledger Trial Balance Income Statement SL Owners Equity Balance Sheet General Journal Tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits. General Ledger Tab. One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Income Statement Tab - The revenue and expense balances from the trial balance appear on the income statement, along with their balance as of the date selected. Review the income statement and indicate how the income statement is linked to the other financial statements. Statement of Owner's Equity Tab - Owner investments and withdrawals, as reported on the trial balance, appear on the statement of owner's equity. Review the statement of owner's equity and indicate how the statement of owner's equity is linked to the other financial statements. Balance Sheet Tab - Each asset and liability account balance, as reported on the trial balance, appears on the balance sheet, along with the ending capital balance. Review the balance sheet and then indicate how the balance sheet is linked to the other financial statements. General Joumal >
