Following requirements:

-Prepare financial statements including the balance sheet, income statement, and statement of owner's equity.

-Apply the rules of debit and credit to record business transactions in T-accounts and the general ledger.

-Prepare to explain each step in the accounting cycle including: posting journal entries to the general ledger and closing the book of accounts.

Rubric:

Part 1: Journalize and Post April Entries

Part 2: Prepare an Unadjusted Trial Balance

Part 3: Journalize and Post Adjusting Entries

Part 4: Prepare an Adjusted Trial Balance

Part 5: Prepare Financial Statements

Part 6: Journalize and Post Closing Entries

Part 7: Prepare a Post Closing Trial Balance

Part 8: Journalize Reversing Entries

Comprehensive Question - Susie's Commercial Cleaning

Susie Smith opened Susie's Commerical Cleaning on April 1, 2021.In Apr, the following transactions were completed.

April 1: Invested $14,000 cash in the business

April 1: Purchased a used truck for $26,400, paying $6,400 cash and signing a note payable for the balance

April 1: Collected $3,000 from XYZ for their cleaning needs for Apr, May, and June.

April 3: Purchased cleaning supplies on account for $850

April 5: Paid $1,800 on a one-year insurance policy, effective Apr 1

April 12: Billed customers $3,800 for cleaning services

April 18: Paid $400 of the amount owed on cleaning supplies

April 20: Paid $1,600 for employee's salaries

April 21: Collected $1,400 from customers billed on Apr 12

April 25: Billed customers for $3,000 for cleaning services

April 30: Paid gas and oil for the month on the truck $350

April 30: Withdrew $1,600 to pay personal property taxes

Additional Information:

Annual payments of $3,000 are required on the note.

Required:

1. Journalize and post the Apr transactions. Susie's Commerical Cleaning records all prepaid expensesand unearned revenues as assets and liabilities
2. Prepare an unadjusted trial balance on April 30, 2021.
3. Journalize and post the following adjustments

a. Earned and unbilled fees on Apr 30, 2021, were $1,500.

b. The truck has an estimated useful life of four years and no residual value.

c. The insurance policy is effective Apr 1, 2021, and expires on March 31, 2022

d. An inventory count shows $375 of cleaning supplies on hand at Apr 30, 2021.

e. At Apr 30. 2021, $1,000 of the fees collected in advance have been earned.

f. Accrued but unpaid employee salaries were $400.

g. The note payable has a 6% annual interest rate.

4.Prepare adjusted trial balance at Apr 30, 2021.

5.Prepare in good form an Income Statement, Statement of Owner's Equity, and a Classified Balance Sheet

6.Journalize and post the closing entries.

7.Prepare post-closing trial balance at Apr 30, 2021.

8.Susie's Commercial Cleaning has chosen to prepare reversing entries. Prepare necessary reversing entries in May 2021.

They do not need to be posted.