G H K M N O P R S A B D E F Task 2: Sophia has done a great job completing steps 1 through 4 in the accounting HHEC cycle; however, she is still unsure of how to complete steps 5 through 7. As a result, she provides you with HHEC Corp's trial balance and a list of internal transactions that HAPPY HOME occurred during the year and asks you to prepare the required adjusting entries, an Environmental Cleaning adjusted trial balance, and HHEC Corp.'s financial statements. 1 2 3 HHEC Corporation 4 Trial Balance 5 December 31, Year 2 6 7 Cash 355,000 8 Accounts Receivable 72,000 9 Supplies 85,500 10 Prepaid Insurance 46,000 11 Building 150,000 12 Trucks 350,000 13 Land 275,000 14 Office Equipment 78,000 15 Accounts Payable 18,000 16 Wages Payable 2,500 17 Common Stock, par value 550,000 18 Preferred Stock, par value 625,000 19 Additional paid-in capital, common stock 125,000 20 Cleaning Revenue 386,250 21 Dividends 50,000 22 Rent expense 205,000 23 Utilities Expense 19,000 24 Wages expense 21,250 25 1,706.750 1,706,750 26 27 28 29 1. Insurance expires at the rate of $2,000 per month. 30 2. 75,000 of supplies are on hand at December 31st 31 3. Annual depreciation on the Building is 15,000 32 4. Annual Depreciation on the trucks is $35,000 33 5. Annual depreciation on the office equipmnent $7,800 34 6. At December 31, HJHEC owed its employees 12,000 35 7. Revenues earned for cleaning services performed but unrecorded and collected by December 31 totaled $22,000 36 8. On December 31st customers paid $18,000 for the company's 1 year cleaning package beginning on January 1st 37 Unit 1-Challenge 2-Task 2 A B D E F G H J K L M N O R S 40 ANSWERS 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 0 0 gn gggggggggag8g88589ada8 q 88589212Bs 56 57 TOTAL 58 59 60 61 HHEC Corporation Adjusted Trial Balance December 31, Year 2 62 63 64 Trial Balance Dr. Cr Adjustments Dr. Cr Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr Balance Sheet Dr Cr. 65 66 67 68 69 70 71 72 73 74 75 76 77 78 Unit 1-Challenge 2-Task 2