I need to make an unadjusted and adjusted trial balance for part 3. Can someone show how i do that?
12/12/2020: Invoiced the customer Greer Inc. $1,045 for a design drawn and delivered that day, receiving payment immediately. 12/14/2020: Took a prospective client to lunch. $68. 12/15/2020: Davis Designs pays your accounting invoice. 12/15/2020: Received payment from Hanover Engineering. 12/21/2020: Paid for the copier that was bought on 11/15/2020. 12/30/2020: Received and recorded the bundled utility bill for December, $416. 12/31/2020: Davis Designs pays Maya Davis a salary of $5,000 for the month of December. The federal income withholding tax withheld from Maya's paycheck was $860. FICA-OASDI is 12.4%, of which half is withheld from Maya's pay, and the other half is paid by the Employer. Also, FICA-Medicare is 2.9%, and the same rule applies: half comes from Maya's paycheck and half paid by Davis Designs. FUTA is .6% (decimal form..006). Ignore SUTA. The payment to the IRS for the payroll taxes will be made 1/20/2021. PART 3: UNADJUSTED TRIAL BALANCE, ADJUSTING ENTRIES, ADJUSTED TRIAL BALANCE Prepare the Unadjusted Trial Balance. Make the Adjusting Entries and update ledger accounts. Prepare the Adjusted Trial Balance. 1. Davis Designs will use the "Percentage of Credit Sales" estimation method for estimating the uncollectible customer accounts. The percentage Davis thinks is appropriate is 2%. 2. Depreciation: the company will depreciate assets straight-line for 6 years, with NO residual (ie, salvage or trade-in) value. Remember to take into consideration the timing of when the assets were received and adjust for part-year, and part-month. Round to the nearest whole dollar. I 3. Took a count of office supplies, the office supplies on hand at 12/31 were $160. 4. Look at the Unadjusted trial balance. What other accounts need to be adjusted? PART 4: FINANCIAL STATEMENTS, CLOSING ENTRIES, POST-CLOSING TRIAL BALANCE From the Adjusted Trial Balance in Part 3 of this project, prepare the Financial Statements (Multi-step Income Statement, Statement of Retained Earnings, Classified Balance Sheet, Statement of Cash Flows, indirect method). Next, prepare the closing journal entries. Finally, update the Ledgers and prepare the Post-Closing Trial Balance. Everything that you need for this final part of the project is in chapter 3, and see also chapter 12 for the Statement of Cash Flows. 12/12/2020: Invoiced the customer Greer Inc. $1,045 for a design drawn and delivered that day, receiving payment immediately. 12/14/2020: Took a prospective client to lunch. $68. 12/15/2020: Davis Designs pays your accounting invoice. 12/15/2020: Received payment from Hanover Engineering. 12/21/2020: Paid for the copier that was bought on 11/15/2020. 12/30/2020: Received and recorded the bundled utility bill for December, $416. 12/31/2020: Davis Designs pays Maya Davis a salary of $5,000 for the month of December. The federal income withholding tax withheld from Maya's paycheck was $860. FICA-OASDI is 12.4%, of which half is withheld from Maya's pay, and the other half is paid by the Employer. Also, FICA-Medicare is 2.9%, and the same rule applies: half comes from Maya's paycheck and half paid by Davis Designs. FUTA is .6% (decimal form..006). Ignore SUTA. The payment to the IRS for the payroll taxes will be made 1/20/2021. PART 3: UNADJUSTED TRIAL BALANCE, ADJUSTING ENTRIES, ADJUSTED TRIAL BALANCE Prepare the Unadjusted Trial Balance. Make the Adjusting Entries and update ledger accounts. Prepare the Adjusted Trial Balance. 1. Davis Designs will use the "Percentage of Credit Sales" estimation method for estimating the uncollectible customer accounts. The percentage Davis thinks is appropriate is 2%. 2. Depreciation: the company will depreciate assets straight-line for 6 years, with NO residual (ie, salvage or trade-in) value. Remember to take into consideration the timing of when the assets were received and adjust for part-year, and part-month. Round to the nearest whole dollar. I 3. Took a count of office supplies, the office supplies on hand at 12/31 were $160. 4. Look at the Unadjusted trial balance. What other accounts need to be adjusted? PART 4: FINANCIAL STATEMENTS, CLOSING ENTRIES, POST-CLOSING TRIAL BALANCE From the Adjusted Trial Balance in Part 3 of this project, prepare the Financial Statements (Multi-step Income Statement, Statement of Retained Earnings, Classified Balance Sheet, Statement of Cash Flows, indirect method). Next, prepare the closing journal entries. Finally, update the Ledgers and prepare the Post-Closing Trial Balance. Everything that you need for this final part of the project is in chapter 3, and see also chapter 12 for the Statement of Cash Flows
