Harry Preston, Certified Public Accountant, Professional Corporation (P.C.), completed the following transactions during the first part of December 2022: Dec. 2 Received $7,000 cash from Preston and issued common stock to him. Paid monthly office rent, $500. Paid cash for a Dell computer, $3,000, with the computer expected to remain in service for 5 years. 4 Purchased office furniture on account, $3,600, with the furniture projected to last for 5 years. 5 Purchased supplies on account, $300. 9 Performed tax service for a client and received cash for the full amount of $800. 12 Paid utility expense, $200. 18 Performed consulting service for a client on account, $1,700. 21 Received $900 in advance for tax work to be performed evenly over the next 30 days. 21 Hired a secretary to be paid $1,500 on the 20th day of each month. 26 Paid for the supplies purchased on December 5. 27 Collected $600 from the consulting client on December 18. 30 Declared and paid dividends of $1,600. Required: 1. Journalize the transactions through December 30 . 2. Post the transactions to the T-accounts, keying all items by date. Calculate the balance in each account on December 30 . 3. Prepare a Trial Balance at December 30. Makes sure it balances before proceeding! art 2 (Recording Adjusting Entries \& Preparing an Adjusted Trial Balance) 4. At December 31, Preston gathers the following information for the adjusting entries: a. Accrued service revenue, $400. b. Earned a portion of the service revenue collected in advance on December 21 . c. Supplies on hand, $100. d. Depreciation expense - equipment, $50; furniture, $60. e. Accrued expense for secretary's salary. Use a 30-day month to simplify the computation. Journalize these entries in the Adjusting Entries tab and then post these adjusting entries to the original ledger accounts. Denote each adjusting amount as Adj. and then recalculate new account balances (denote with Bal.) for any accounts that have changed as a result of the adjusting entries. 5. Complete the worksheet tab in order to create the Adjusted Trial Balance (Again, make sure it balances before proceeding). art 3 (Prepare the Financial Statements \& the Closing Entries) 6. Prepare the income statement and statement of retained earnings of Harry Preston for the month ended December 31 and also prepare a balance sheet as of that date. 7. Journalize the closing entries at December 31 and then post them to the original ledger. Denote each closing amount as Clo. Harry Preston, CPA - Journal Harry Preston - Trial Balance (December 31, 2022) \begin{tabular}{|l|r|r|} \hline Account & Debit Balance (\$) & Credit Balance (\$) \\ \hline Cash & 3,700 & \\ \hline Accounts Receivable & 1,100 & \\ \hline Supplies & 300 & \\ \hline Equipment & 3,000 & 3,600 \\ \hline Furniture & 3,600 & 900 \\ \hline Accounts Payable & & 7,000 \\ \hline Unearned Service Revenue & & \\ \hline Common Stock & 1,600 & 2,500 \\ \hline Dividends & & \\ \hline Service Revenue & 500 & 14,000 \\ \hline Rent Expense & 200 & \\ \hline Utilities Expense & 14,000 & \\ \hline TOTAL & & \\ \hline \hline \end{tabular} Harry Preston, CPA - Journal Harry Preston - Worksheet to Create the Adjusted Trial Balance UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE Harry Preston, CPA Income Statement For Month Ended 12/31 $ Revenue Less Expenses: Rent Expense Salaries Expense Utilities Expense Supplies Expense Depreciation Expense - Furniture Depreciation Expense - Equipment Net Income \begin{tabular}{|r|r|} \hline 500 \\ \hline 50 \\ \hline 200 & \\ \hline 200 & \\ \hline 50 & \\ \hline 60 & \\ \hline 1060 & 1,440 \\ \hline \end{tabular} Harry Preston Statement of Retained Earnings for Month Ended 12/31 $ Opening Balance of Retained Earnings Add: Net Income Less:Dividends Closing Balance of Retained Earnings 01,4401,4401,600160 Harry Preston Balance Sheet As of 12/31 Harry Preston, CPA - Journal