Double Entry/Journal Entry/Accounting Cycle Problem Transactions for Browns for Year 1:

Jan 1 $50,000 cash was acquired in exchange for common stock.

Mar 1 $8,400 cash was paid for two years of Office Rent

Apr 14 $800 worth of supplies were purchased on account.

Jun 30 $12,000 cash was received in advance for services to be provided over the next 12 months.

Aug 1 We billed a customer $5,000 for work that we completed in July

Aug 8 $1,600 was received for work that we completed.

Sept 1 $20,000 cash was used to pay employees salaries

Sept 9 $4,250 cash was received for services that we billed for previously.

Oct 5 We billed multiple customers a total of $19,000 for services we provided.

Nov 2 Stockholders were paid $500 cash dividend.

Dec 31 Adjusted Entries that needs to be recorded as of December 31st are as follows:

1) We need to recognize the services provided that were contracted on June 30th.

2) Accrued Salaries we need to record a total of $1,100.

3) In March, we prepaid our rent, we need to recognize the rent expense for the year.

4) We physically counted supplies and come to find out, we only have $50 worth of supplies on hand, so we need to record what was used up during the year.

REQUIRED

a) Record the above transactions in the general journal.

b) Not required: may be helpful post the transactions to T-accounts and calculate the account balances.

c) Prepare a Trial Balance

d) Prepare the Income Statement, Statement of Changes in Stockholders Equity, Balance Sheet, and Statement of Cash Flows.

e) Prepare the closing entries as of December 31st. f) Prepare a Post-Closing Trial Balance after the closing entries are posted.