I really need help with this entire set that I attached.

WE DO HAIR, INC. An Accounting Practice Set for Accounting 213 Saginaw Valley State University Fall 2017 We Do Hair, Inc. is a full service hair salon, operated by its majority shareholder and hair specialist, Scarlett Coif. Presented below is the November 30, 2016, unadjusted trial balance of We Do Hair, Inc. The temporary account balances represent the results of entries recorded during the first 11 months of 2016, and the balance in We Do Hair's common stock and retained earnings accounts have not changed since December 31, 2015. Currently, 15,000 shares of stock are outstanding and 50,000 shares have been authorized. All income tax effects are to be ignored for this project. We Do Hair, Inc. Unadjusted Trial Balance November 30, 2016 REF Cash 111 Senior Center Receivables 112 Supplies Inventory 113 Prepaid Rent 114 Hair Equipment 131 Accumulated Depreciation, Equipment 132 Computer and other office equipment 135 Accumulated Depreciation, Computer and 136 other office equipment Accounts Payable 211 Wages Payable 212 Interest Payable 213 Unearned Service Revenue 214 Long-Term Notes Payable 220 Common Stock ($5 par value) 311 Retained Earnings 312 Income Summary 313 Men's haircut revenue 411 Women's haircut revenue 412 Perm revenue 413 Senior citizen cut revenue 414 Wages Expense 511 Rent Expense 512 Supplies Expense 514 Utilities Expense 515 Advertising Expense 516 Maintenance Expense 517 Depreciation Expense, Hair equipment 518 Depreciation Expense, Computer and other 519 office equipment Interest Expense 520 Total DEBIT $36,667 3,400 8,400 CREDIT 54,836 $4,100 30,739 12,830 1,500 1,700 10,000 40,000 21,182 81,160 149,700 64,000 16,783 195,000 18,900 20,250 18,200 9,750 6,280 533 $402,955 $402,955 2 The following transactions occurred during the month of December 2016: 12/1 We Do Hair, Inc. rents its salon space as part of a local mall. We Do Hair prepays its rent 12 months in advance. The annual rental payment is made on December 1 of each year and expires on December 1 of the following year. The rental payment is made on this date for the 12 months ending December 1, 2017. The payment is $19,200. 12/2 Cash revenues received for various services were: men's haircuts $3,200, women's haircuts $4,800, perms $980, and senior citizens $680. 12/4 Senior Citizens Receivable represents visits made by We Do Hair to area Senior Citizen Centers to give haircuts to residents of the senior center. After giving haircuts on a given day, We Do Hair bills the senior center for the number of haircuts given. Today haircuts at Johnson Senior Care were given totaling $2,500 and Johnson was billed accordingly. 12/4 Purchased a two-year insurance policy, protecting We Do Hair from lawsuits for especially bad haircuts. The term of this policy is December 1, 2016 - December 1, 2018. The two-year premium is $9,600. 12/5 Purchased various haircut supplies, on account, $1,700. 12/7 Purchased an automobile for employees to use when driving to give off-site haircuts, such as to area senior citizen homes. Record as Hair Equipment. Cost of the auto is $21,000. $10,000 is paid in cash and the remainder is financed with a three-year, 8% note payable, the principle amount of the note being paid in full on December 1, 2012. Interest is paid annually each December 1, beginning December 1, 2017. 12/10 Received bill for and paid $6,500 for a series of radio advertisements that were aired December 1 - 10. 12/12 Cash revenues for men's haircuts were $8,800 and women's haircuts were $12,600. In addition, cash revenues for perms were $5,900. 12/14 Received payments from senior citizen centers, $3,400, on account. 12/17 Paid wages to employees, who are paid per haircut given. This period's biweekly wage totaled $9,270. 12/19 Paid $670 to janitorial service for cleaning the office. 12/20 Received bill for advertisements shown in local newspapers, totaling $3,900. The bill we be paid in a couple of weeks. 12/21 Purchased supplies, on account, $1,250. 12/23 Paid various accounts payable bills, $7,160. 12/24 Paid various automobile expenses for driving to senior citizen centers, and other travel related expenses, $1,175. 12/28 Performed haircuts at the Community Senior Citizen center, and billed the center, $4,600. 12/31 Cash haircuts and perms for the last half of the month were men's haircuts $4,200, women's haircuts $5,800, perms $600. 12/31 Paid more bills on account, $800. 12/31 Paid interest on the $10,000 long-term note payable, $1,000. 1. 2. 3. 4. 5. REQUIREMENTS Prepare and post journal entries to record the December transactions listed above. Prepare a 6 column work sheet and enter the December 31 unadjusted balances from the accounts. Also enter adjusting entries into the worksheet for the following items, and complete the worksheet. 1 a. Unpaid wages were $10,700 as of December 31. b. The December 31 supply inventory was $3,200. c. The expired portion of the prepaid rent as of 12/31/16 is recorded. d. Depreciation for the year on the hair equipment follows: (1) on the equipment owned throughout the year $2,950, (2) the automobile purchased on December 7 has a 5 year life and no salvage value. Record one month's depreciation on the auto. Total depreciation is the sum of (1) and (2). e. Depreciation for the year on the Computer and Other Equipment was $4,300. f. Unpaid utilities expense for December was $2,364 (credit accounts payable). g. Unearned revenue is for 68 haircuts to be given to a local Boy Scouts group. The group paid in advance for these haircuts in November. As of December 31, 56 of the haircuts have been given. h. Prepare the adjustment to accrue interest on the note payable from December 7 (24 days). i. The expired portion (1 month) of the liability insurance (December 4) is recorded. Journalize and post the adjusting entries. Please note these adjusting entries will be entered into the worksheet (#2 above) and also are recorded in the journal and posted to the ledger. Please do both! Journalize and post the closing entries. Please note these closing entries are not recorded in the worksheet, but they are recorded in the journal and posted to the ledger. After journalizing and posting these entries, revenues and expenses should have balances of $zero, and retained earnings should be updated accordingly. Prepare an income statement, statement of retained earnings, and a classified balance sheet for the year-ended December 31, 2016. 1 You are reminded that the work sheet is not an official book of entry like a journal or general ledger. It is used by the accountant to the dollar values of the accounts as well as adjusting journal entries, to gain an idea of what the accounts will look like on the financial statements. The adjusting journal entries must be posted to the general ledger. The general ledger is the official book of record that maintains account balances for the business. So, you must journalize entries and post them to the general ledger as well as complete the worksheet. 3 DATE GENERAL JOURNAL - WE DO HAIR, INC. ACCOUNT REF DEBIT CREDIT 4 DATE GENERAL JOURNAL - WE DO HAIR, INC. ACCOUNT REF DEBIT CREDIT 5 DATE GENERAL JOURNAL - WE DO HAIR, INC. ACCOUNT REF DEBIT CREDIT 6 DATE GENERAL JOURNAL - WE DO HAIR, INC. ACCOUNT REF DEBIT CREDIT 7 DATE GENERAL JOURNAL - WE DO HAIR, INC. ACCOUNT REF DEBIT CREDIT 8 DATE GENERAL LEDGER - WE DO HAIR, INC. CASH - 111 DESCRIPTION DEBIT CREDI T 11/30 DATE 11/30 BALANCE 36,667 Senior Center Receivables - 112 DESCRIPTION DEBIT CREDIT BALANCE 3,400 9 GENERAL LEDGER DATE SUPPLIES INVENTORY - 113 DESCRIPTION DEBIT CREDI T 11/30 DATE BALANCE 8,400 PREPAID RENT - 114 DESCRIPTION DEBIT CREDI T BALANCE CREDI T BALANCE 11/30 DATE 11/30 HAIR EQUIPMENT - 131 DESCRIPTION DEBIT 54,836 10 GENERAL LEDGER ACCUMULATED DEPRECIATION, HAIR EQUIPMENT - 132 DATE DESCRIPTION DEBIT CREDI BALANCE T 11/30 4,100 DATE 11/30 COMPUTER AND OTHER OFFICE EQUIPMENT - 135 DESCRIPTION DEBIT CREDI T BALANCE 30,739 ACCUMULATED DEPRECIATION, COMPUTER & OTHER OFFICE EQUIP. - 136 DATE DESCRIPTION DEBIT CREDI BALANCE T 11/30 12,830 11 GENERAL LEDGER DATE ACCOUNTS PAYABLE - 211 DESCRIPTION DEBIT CREDI T 11/30 DATE BALANCE 1,500 WAGES PAYABLE - 212 DESCRIPTION DEBIT CREDI T BALANCE CREDI T BALANCE 11/30 DATE INTEREST PAYABLE - 213 DESCRIPTION DEBIT 12 GENERAL LEDGER DATE UNEARNED SERVICE REVENUE - 214 DESCRIPTION DEBIT CREDI T 11/30 DATE 1,700 LONG-TERM NOTES PAYABLE - 220 DESCRIPTION DEBIT CREDI T 11/30 DATE 11/30 BALANCE BALANCE 10,000 COMMON STOCK ($5 PAR VALUE) - 311 DESCRIPTION DEBIT CREDI T BALANCE 40,000 13 GENERAL LEDGER DATE RETAINED EARNINGS - 312 DESCRIPTION DEBIT CREDI T 11/30 DATE 21,182 MEN'S HAIRCUT REVENUE - 411 DESCRIPTION DEBIT CREDI T 11/30 DATE 11/30 BALANCE BALANCE 81,160 WOMEN'S HAIRCUT REVENUE - 412 DESCRIPTION DEBIT CREDI T BALANCE 149,700 14 GENERAL LEDGER DATE PERM REVENUE - 413 DESCRIPTION DEBIT CREDI T 11/30 DATE 64,000 SENIOR CITIZEN CUT REVENUE - 414 DESCRIPTION DEBIT CREDI T 11/30 DATE 11/30 BALANCE BALANCE 16,783 WAGES EXPENSE - 511 DESCRIPTION DEBIT CREDI T BALANCE 195,000 15 GENERAL LEDGER DATE RENT EXPENSE - 512 DESCRIPTION DEBIT CREDI T 11/30 DATE BALANCE 18,900 SUPPLIES EXPENSE - 514 DESCRIPTION DEBIT CREDI T BALANCE 20,250 DATE UTILITIES EXPENSE - 515 DESCRIPTION DEBIT CREDI T 11/30 DATE 11/30 BALANCE 18,200 ADVERTISING EXPENSE - 516 DESCRIPTION DEBIT CREDI T BALANCE 9,750 16 17 GENERAL LEDGER DATE MAINTENANCE EXPENSE - 517 DESCRIPTION DEBIT CREDI T 11/30 DATE BALANCE 6,280 DEPRECIATION EXPENSE, HAIR EQUIPMENT - 518 DESCRIPTION DEBIT CREDI T BALANCE DEPRECIATION EXPENSE, COMPUTER AND OTHER EQUIPMENT - 519 DATE DESCRIPTION DEBIT CREDI BALANCE T DATE INTEREST EXPENSE - 520 DESCRIPTION DEBIT CREDI T BALANCE 533 18 DESCRIPTION WORKSHEET, December 31, 2009 UNADJUSTED ADJUSTMENTS TRIAL BALANCE DEBIT CREDIT DEBIT CREDIT ADJUSTED TRIAL BALANCE DEBIT CREDIT Cash Sen. citizen receivables Supplies Inventory Prepaid Rent Hair Equipment Accumulated Depreciation, Hair Equipment Computer and other Accumulated Depreciation, Computer and other Accounts Payable Wages Payable Interest Payable Unearned service revenue Long-Term Notes Payable Common Stock Retained Earnings Income summary Men's haircut revenue Women's haircut revenue Perm revenue Senior citizen cut revenue Wages Expense Rent Expense Supplies Expense Utilities Expense Advertising Expense Maintenance Expense Depreciation Expense, Hair Equipment Depreciation Expense, Computer and other Interest Expense Totals 19 WE DO HAIR, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016 WE DO HAIR, INC. RETAINED EARNINGS STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016 20 WE DO HAIR, INC. BALANCE SHEET DECEMBER 31, 2016 21