fill in the trial balance ledger for:

On January 2, 2018 you started a business corporation named Ace Corporation. Business is slow, so you only have a few transactions during the year, and it appears you will make very little profit. Given the attached chart of Accounts and other worksheets you are required to enter the journal entries to record the transactions and post them to the ledger as they occur. At the end of the calendar year you will need to prepare a trial balance. You will also enter the adjusting journal entries, post the adjusting journal entries to the ledger and complete the adjusted trial balance. Next prepare the income statement for year ending December 31, 2018. Prepare the statement of stockholders' equity for year ending December 31, 2018. Enter the closing Journal entries and Post them to the ledger.

Requirement 1

Prepare the journal entries for the following transactions and post each journal entry to the ledger.

1. On January 2, 2018 Ace Corporation receives $300,000 cash from the stockholders and in turn issued common stock to them.

2. On January 2, 2018 Ace prepaid $39,000 cash to rent office space for 3 years.

3. On January 2, 2018 to furnish the office Ace purchased office furniture and equipment for $17,000 cash.

4. On February 1, 2018 Ace purchased inventory for $20,000 cash to sale to its customers.

5. On April 15, 2018 Ace recorded cash sales of $13,800.

6. On July 1, 2018 Ace obtains a 1-year loan from a local bank for $50,000. The bank is charging Ace interest at an annual percentage rate of 8%. Interest is payable January 1, 2019 and July 1, 2019.

7. On August 15, 2018 Ace recorded sales on account of $16,000.

8. On September 30, 2018 Ace received $8,000 cash for part of the sales on account recorded on August 15, 2018.

9. On November 15, 2018 Ace purchased $15,000 of inventory on account.

10. On December 1, 2018 Ace recorded cash sales of $17,500.

11. On December 10, 2018 Ace paid $14,000 cash for the $15,000 purchase of inventory on account on November 15, 2018.

12. On December 15, 2018 Ace paid $2,800 for a utility bill

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Ace Corporation Preparation of Adjusted Trial Balance December 31, 2018 Trial Balance Adjustments Debit Credit Debit Credit Account Title Adjusted Trial Balance Debit Credit Cash Accounts Receivable Inventory Prepaid Office Rent Office Furniture and Equipment Accumulated Depreciation Accounts Payable Loan Interest Payable Loan Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Utilities Expense Depreciation Expense Loan Interest Expense Totals Date January 2, 2018 Cash Journal Entries Description Credit Debit $300,000 Common Stock Tissued Stock for Cash $300,000 January 2, 2018 PRETOAINE SI TODO RANKE T 000 casn Prepaid Rent for Office Space 1834. January 2, 2018 LG H ure OPST001 Kash Purchased Office Furniture for Cash February 1, 2018 Inventor 520000 cash 50,000 Purchased Inventory for Cash $38.00 April 15, 2018 Can 13. SOO 5 Cash Sales 6 NO. 00 July 1, 2018 Cah Ne baad Obtained Bank Loan 60,000 7 August 15, 2018 C unts Recievable Sales Sales on Account T AI00 158.000 8 September 30, 2018 Cash - Accounts Recievable Received Cash for Sales on Account 158.000 5 15.00 9 November 15, 2018 inventory Acroonts batable Purchased Inventory on Account 10 December 1, 2018 Cash Sales Cash Sales 517.500 T 517.500 11 December 10, 2018 Accounts Payable 5 14000 Cash Paid for Inventory Purchased on Account ASILIANO 12 December 15, 2018 tilid Expense cash Paid Utility Bill 2.1500 1 Debit C Reference BODO Date December 31, 2018 Rent ATC Adjusting Journal Entries Description JET PC Record Office Rent Expense for 2018 4 .00 14.000 V B December 31, 2018tereson a BC Bank Record Loan Interest Expense C1 December 1, 2018 CORFOF goods SORIAL TELEKULAC Record Cost of Goods Sold for 2018 S 300D 53 1 December 312018 D A TE MENC Em Record Depreciation Expense for 2018 Closing Journal Entries Debit Credit Reference U Date December 31, 2018 Description Close Sales Revenue to Retained Earnings VWXYZ December 31, 2018 WT X YTT Close Expenses to Retained Earnings Assets Liabilities + Stockholders' Equity Accounts Receivable Ref Debit Credit 1 b.000 Accounts Payable Ref Debit Credit rolul Cash Ref Debit Credit 1 $300,000 153 1.000 17,000 $20,000 SS 3.800 6 150000 Common Stock Ref Debit Credit $300,000 1800D 155.00 18.000 10 500 Retained Earnings Ref Debit Credit 513.800 16. OOD 02 $14,000 $2,500 $17.500 Bal 5296.50 Bal $8,000 Bal $1 oog Bal $41500 Prepaid Office Rent Ref Debit Credit 1539.000 Inventory Ref Debit Credit 4 20.000 9 15.000 Bal Loan Interest Payable Ref Debit Credit Bal See Next Page for Revenue and Expense Accounts that are part of Stockholder's Equity Bal $35,000 Bal 39,00 Loan Payable Ref Debit Credit Accumulated Depreciation Ref Debit Credit Office Furnitue & Equip Ref Debit Credit 7.000 Ball Income and Expense Accounts that are Part of Owners Equity Sales Revenue Cost of Goods Sold Ref Debit Credit Ref Debit Credit Bal Bal 3D Rent Expense Ref Debit Credit Ak13000 Bal Bal $13,000 Utilities Expense Ref Debit Credit IN 2,800 Bal Bal52.800 Depreciation Expense Ref Debit Credit D3400 Bal Bal5400 Loan Interest Expense Ref Debit Credit BD-70001 Bal Bal 514,000 Ace Corporation Preparation of Adjusted Trial Balance December 31, 2018 Trial Balance Adjustments Debit Credit Debit Credit Account Title Adjusted Trial Balance Debit Credit Cash Accounts Receivable Inventory Prepaid Office Rent Office Furniture and Equipment Accumulated Depreciation Accounts Payable Loan Interest Payable Loan Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Utilities Expense Depreciation Expense Loan Interest Expense Totals Date January 2, 2018 Cash Journal Entries Description Credit Debit $300,000 Common Stock Tissued Stock for Cash $300,000 January 2, 2018 PRETOAINE SI TODO RANKE T 000 casn Prepaid Rent for Office Space 1834. January 2, 2018 LG H ure OPST001 Kash Purchased Office Furniture for Cash February 1, 2018 Inventor 520000 cash 50,000 Purchased Inventory for Cash $38.00 April 15, 2018 Can 13. SOO 5 Cash Sales 6 NO. 00 July 1, 2018 Cah Ne baad Obtained Bank Loan 60,000 7 August 15, 2018 C unts Recievable Sales Sales on Account T AI00 158.000 8 September 30, 2018 Cash - Accounts Recievable Received Cash for Sales on Account 158.000 5 15.00 9 November 15, 2018 inventory Acroonts batable Purchased Inventory on Account 10 December 1, 2018 Cash Sales Cash Sales 517.500 T 517.500 11 December 10, 2018 Accounts Payable 5 14000 Cash Paid for Inventory Purchased on Account ASILIANO 12 December 15, 2018 tilid Expense cash Paid Utility Bill 2.1500 1 Debit C Reference BODO Date December 31, 2018 Rent ATC Adjusting Journal Entries Description JET PC Record Office Rent Expense for 2018 4 .00 14.000 V B December 31, 2018tereson a BC Bank Record Loan Interest Expense C1 December 1, 2018 CORFOF goods SORIAL TELEKULAC Record Cost of Goods Sold for 2018 S 300D 53 1 December 312018 D A TE MENC Em Record Depreciation Expense for 2018 Closing Journal Entries Debit Credit Reference U Date December 31, 2018 Description Close Sales Revenue to Retained Earnings VWXYZ December 31, 2018 WT X YTT Close Expenses to Retained Earnings Assets Liabilities + Stockholders' Equity Accounts Receivable Ref Debit Credit 1 b.000 Accounts Payable Ref Debit Credit rolul Cash Ref Debit Credit 1 $300,000 153 1.000 17,000 $20,000 SS 3.800 6 150000 Common Stock Ref Debit Credit $300,000 1800D 155.00 18.000 10 500 Retained Earnings Ref Debit Credit 513.800 16. OOD 02 $14,000 $2,500 $17.500 Bal 5296.50 Bal $8,000 Bal $1 oog Bal $41500 Prepaid Office Rent Ref Debit Credit 1539.000 Inventory Ref Debit Credit 4 20.000 9 15.000 Bal Loan Interest Payable Ref Debit Credit Bal See Next Page for Revenue and Expense Accounts that are part of Stockholder's Equity Bal $35,000 Bal 39,00 Loan Payable Ref Debit Credit Accumulated Depreciation Ref Debit Credit Office Furnitue & Equip Ref Debit Credit 7.000 Ball Income and Expense Accounts that are Part of Owners Equity Sales Revenue Cost of Goods Sold Ref Debit Credit Ref Debit Credit Bal Bal 3D Rent Expense Ref Debit Credit Ak13000 Bal Bal $13,000 Utilities Expense Ref Debit Credit IN 2,800 Bal Bal52.800 Depreciation Expense Ref Debit Credit D3400 Bal Bal5400 Loan Interest Expense Ref Debit Credit BD-70001 Bal Bal 514,000