Goal 1: Comprehensive Problem; The Accounting Cycle using journals and T-accounts

The trial balance of S&S Tree Service as of January 1, 2016 had the following normal balances:

Cash $ 20,000

Accounts Receivable 2,800

Supplies 425

Prepaid Insurance 3,000

Equipment

Accumulated Depreciation

Accounts Payable 900

Salaries Payable 500

Interest Payable

Unearned Revenue 225

Note payable

Common Stock 22,000

Retained Earnings 2,600

Dividends

Service Revenue

Fuel Expense

Depreciation Expense

Insurance Expense

Interest Expense

Rent Expense

Salary Expense

Supplies Expense

S&S Tree Service completed the following transactions during 2016.

1. Paid the salaries owed from the prior period.

2. The company purchased equipment for $25,000 making a down payment of $1,000 and taking a

loan on the remainder at a 4% annual interest rate.

3. Issued stock $3,000.

4. Paid $900 cash for supplies.

5. Prepaid insurance of $900 for a three month period.

6. Performed tree trimming services for a customer and received $2,800 cash.

7. Completed a large commercial job and billed the customer $36,500.

8. Paid the amount due on account.

9. Purchased supplies on account $2,500.

10. Collected $675 in advance for lawn service to be performed later.

11. Collected $15,800 cash from customer on account.

12. Purchased fuel for the truck, paying $1,200 on account.

13. Paid employees, $700.

14. Paid office rent for the period, $3,600.

15. Paid $500 in dividends to the stockholders.

Adjustments:

16. There was $500 supplies on hand at year end.

17. Prepaid insurance used during the year was $300 per month.

18. Unearned services earned during the year $400.

19. Accrue interest on the note payable for one full year.

20. Accrue salaries for year end, $300.

21. Depreciation for the year was $5,000.

Required:

a. Record the above transactions (#1-15) and the adjustments (#16-21) in the general journal.

(You are to create a general journal page in Excel and number each transaction you record;

ie 1,2,3 etc.)

b. Post the entries to T-Accounts.

i. Use a new TAB in EXCEL to create the T-Accounts. (Hint: the CASH will have the most postings)

ii. Line up the T-Accounts in organized columns, under each of the following categories;

(Assets, Liabilities, Equity, Revenues, Expenses)

iii. After posting, subtotal each T-Account to show the balance in the account.

c. Prepare a Trial balance. Please use a separate tab in Excel for this step.

d. Prepare the financial statements for 2016 and include complete and proper headings on each.

(Income Statement, Statement of Changes in Stockholders Equity, Balance Sheet.

Please help, I really need help on this problem. Thanks very much.