For your client, Tyler, you are going to record and post general and adjusting journal entries for the year ended December $31,2022.$ You will complete this work on the template that you just saved through Canvas. Read the case, below, and perform the following steps:

Record the cash activity ONLY as general journal entries on the $$GJEs$$ tab. You can break these up into more journal entries if you like $$ for example, I recorded the equipment purchases in one journal entry and I recorded most of the cash activity in journal entry #$4.$ You can record them separately for each cash transaction if it$$s easier for you. Just expand the spreadsheet and number the journal entries accordingly. Every journal entry must balance between the debit and credit columns.

Post each journal entry to the appropriate $$T$$ account on the $$Unadjusted T$$ Account tab. Don$$t forget to make sure you calculate the total balance per account. You will have either a debit or a credit balance in each $$T$$ account after you post the transactions. I have not included any formulas to auto calculate the totals.

Complete the unadjusted trial balance located on the $$Unadjusted Trial Balance$$ tab by taking the balance of each of the T accounts and entering them into the $$Unadjusted Trial Balance$$ debit and credit columns. If your column totals do not match, STOP. Go back and make sure you recorded and posted your journal entries correctly.

Record the adjusting entries as adjusting journal entries on the $$AJEs$$ tab.

Adjusting journal entries are discussed in Chapter $3$ and include:

Depreciation expense

Revenue accruals

Expense accruals

Adjusting prepaids $($you have at least three $$ inventory, supplies, and insurance. Your expense that you are recording will adjust the balances on the balance sheet to the required balances noted, above, at December $31)$

Post each journal entry to the appropriate $$T$$ account on the $$Adjusted T$$ Account tab. Don$$t forget to make sure you have recalculated the total balance per account. You will have either a debit or a credit balance in each $$T$$ account after you post the transactions. I have not included any formulas to auto calculate the totals.

Complete the adjusted trial balance located on the $$Adjusted Trial Balance$$ tab by taking the balance of each of the Adjusted T accounts and entering them into the $$Adjusted Trial Balance$$ debit and credit columns. If your column totals do not match, STOP. Go back and make sure you recorded and posted your journal entries correctly.

Prepare the financial statements on the three tabs provided.Tyler Smith had worked in an upholstery shop for $10$ years. Last year, Tyler$$s wages were $$25,000.$ Lately, Tyler had been unhappy with the shop$$s owner. Convinced that he could run an upholstery shop that did better work at a lower cost, Tyler decided to go into business for himself during $2022$ and opened Classic Upholstery Shop, Inc. He organized his business as a corporation and deposited $$50,000$ into a business bank account in exchange for shares of common stock.

On January $1,$ to get the business going, Tyler decided to invest heavily in advertising. He spent $$10,000$ on advertising aimed at consumers and another $$1,000$ on advertising aimed at getting work from interior decorators and interior design stores. Tyler also purchased industrial sewing machines costing $$5,000$ and other tools and equipment costing $$15,000.$ He estimated that the sewing machines can be used for about five years before maintenance costs will be too high and the machines will need to be replaced. The other tools and equipment are not as durable and will have to be replaced in three years. Tyler also purchased a vehicle for $$14,000,$ placing $$2,000$ down and financing the remaining amount. The loan is in the name of his business and is not a personal loan. The loan$$s balance at the end of the year is $9,600$ and interest expense paid was $$500.$ The vehicle$$s useful life is $7$ years.

At the end of the first year of business, Tyler had received $$102,000$ in cash from customers for upholstery work. Tyler was owed another $$9,000$ from customers who are not required to pay cash but are billed every $30$ days.

A review of Tyler$$s checkbook and bank account shows he paid the following expenses in cash $($in addition to those mentioned previously$)$ during the first year of business:

Upholstery fabric $$50,000$

Other supplies inventory $$10,000$

Wages$$part$-$time assistant $$8,450$

Rent $$4,900$

Insurance $($two$-$year policy$)$ $$3,200$

Utilities $$1,200$

Professional expenses $$800$

Tyler$$s utility bill for the last month of the year has not arrived. He estimates that the bill will be approximately $$750.$

Tyler keeps some stock of upholstery fabric in popular colors on hand for customers who do not want to wait for special$-$order fabric to arrive.

At the end of the year, about $$16,000$ of the fabric purchased during the year was in his store stock.

In addition, $$1,800$ in supplies had not been used.

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