I need help completing steps 1-8.

ACCT 215

Accounting Cycle Problem

Fall 2019

The John Marshall Company, Inc., which provides consulting services to major utility companies,

was formed on January 2 of this year. Transactions completed during the first year of operations

were as follows:

January 2 - Issued 600,000 shares of stock for $10,000,000.

January 10 - Acquired equipment in exchange for $2,000,000 cash and a $6,000,000 note payable.

The note is due in ten years.

February 1 - Paid $24,000 for a business insurance policy covering the two-year period beginning on

February 1.

February 22 - Purchased $900,000 of supplies on account

March 1 - Paid wages of $185,600

March 23 - Billed $2,730,000 for services rendered on account

April 1 - Paid $100,000 of the amount due on the supplies purchased February 22.

April 17 - Collected $210,000 of the accounts receivable

May 1 - Paid wages of $200,400.

May 8 - Received bill for $98,200 for utilities.

May 24 - Paid $42,500 for sales commissions.

June 1 - Made the first payment on the note issued January 10. The payment consisted of $60,000

interest and $200,000 applied against the principal of the note.

June 16 - Billed customers for $560,000 of services rendered.

June 30 - Collected $300,000 on accounts receivable.

July 10 - Purchased $155,000 of supplies on account.

August 25 - Paid $160,000 for administrative expenses.

September 23 - Paid $30,000 for warehouse repairs.

October 1 - Paid general wages of $90,000.

November 20 - Purchased supplies for $60,000 cash.

December 15 - Collected $125,600 in advance for services to be provided in December and January.

December 30 - Declared and paid a $50,000 dividend to shareholders.

The chart of accounts that Marshall Company, Inc. uses is as follows:

Assets:

101

Cash

102

Accounts receivable

103

Supplies

104

Prepaid insurance

110

Equipment

112

Accumulated depreciation

Liabilities:

201

Accounts payable

202

Unearned service revenue

203

Wages payable

210

Interest payable

220

Notes payable

Stockholders' Equity:

301

Common stock

310

Retained earnings

320

Dividends

Revenues:

401

Service revenue

Expenses:

501

Wage expense

502

Utility expense

503

Selling expense

504

Administrative expense

505

Repairs expense

506

Insurance expense

507

Supplies expense

510

Depreciation expense

520

Interest expense

Other:

601

Income summary

REQUIRED

: Utilizing the information provided above, complete the following steps in an Excel

workbook (Template provided):

1.

Journalize the transactions for the year.

2.

Post the journal entries to a T account.

3.

Prepare an unadjusted trial balance as of December 31.

4.

Journalize and post adjusting entries to the T accounts based on the following additional

information:

a.

Eleven months of the insurance policy expired by the end of the year.

b.

Depreciation for equipment is $400,000.

c.

The company provided $70,00 of services related to the advance collection of

December 15.

d.

There are $500,000 of supplies on hand at the end of the year.

e.

An additional $170,000 of interest has accrued on the note by the end of the year.

f.

Wilson accrued wages of $200,000 at the end of the ear.

5.

Prepare an adjusted trial balance as of December 31.

6.

Prepare a single-step income statement and statement of retained earnings for the year ended

December 31 and a classified balance sheet as of December 31.

7.

Journalize and post the closing entries

8.

Prepare a post-closing trial balance as of December 31