Instructions: 1. Prepare journal entries to record external transactions. 2. Post journal entries to general ledger T accounts. 3. Prepare journal entries to record adjusting entries. 4. Post the adjusting entries to the general ledger T accounts (include a balance on each account) 5. Prepare an adjusted trial balance. 6. Prepare, using good form, an income statement, a statement of stockholders' equity, and a classified balance sheet. 7. Prepare closing journal entries. 8. Post the closing entries to the general ledger T accounts (include a balance on each account). 9. Prepare a post-closing trial balance. Company Information: McDoogan provides printing services to customers. They began operations on January 1, 2019. In January 2020, they realized the current VP had not created the records in an accounting system, and due to a time issue, the financial information must be recorded by hand to produce GAAP based financials for the year ending 2019. As such, they have hired you as the Accountant to get the manual system completed before implementing software for 2020. The research begins: First, you find the company uses straight-line depreciation for all long-term depreciable assets. They also must use the Allowance method to account for uncollectible accounts to be in line with GAAP. The company has decided to use the calendar year, so December 31 is the company's year-end. The company hired two employees on November 1, 2019, you will use the following for the November 27 and December 27 entries. The employees will receive a salary of $2,000 each (4,000 in total). Payroll is processed on the 27th of the month creating the employee and the employer taxes and then net pay is paid on the last day of each month. Upon further investigation, you find the following information related to the company's transactions during 2019. Process the information and produce GAAP based financials for McDoogao, Inc for the year ending December 31, 2019. McDoogan, Inc. engaged in the following transactions in 2019. Jan 1 The owner invested $70,000 into the company in exchange for 5,000 shares of no-par common stock. Jan 1 Purchased a computer system for $32,000. Jan 14 Purchased $1.200 of supplies on account. Feb 25 Invoiced clients for services provided on account. $36.000. Mar 31 Paid rent for two years. $19,200. April 1 The company borrowed $50,000 from Bank of America. May 14 Collected $8,500 on account, June 1 Purchase a delivery van to delivery copies to customers, the van had a purchase price of $53,000 taxes on the van were $5,000 and document charges of $1,500 were paid. Paid $800 on account for supplies purchased on January 14. Received cash for services provided, $10,200. Sept 1 Paid utilities of $4,000. Oct 1 Received $30,000 in advance for services to be provided in the future. Nov 15 Pald for an ad in the local newspaper, $1,500. Nov 27 Processed employee payroll and employer taxes, gross earnings were $4,000. Nov 30 Paid the employee salaries, taxes are not due until January Dec 15 The company declared and paid $6,000 in dividends. Dec 30 Invoiced clients for services performed totaling $9,000. Dec 27 Processed employee payroll and employer taxes, gross earnings were $4,000. Dec 30 Paid the employee salaries, taxes are not due until January. July 31 Aug 10 McDoogap Inc. Chart of Accounts Account Names Cash Common Stock Accounts Receivable Retained Earnings Allowance for Uncollectible Accounts Dividends Supplies Service Revenue Prepaid Rent Advertising Expense Equipment-Computer Utilities Expense Accumulated Depreciation - Computer Salaries Expense Delivery Van Depreciation Expense Accumulated Depreciation - Delivery Van Rent Expense Interest Expense Accounts Payable Supplies Expense Interest Payable Bad Debt Expense Deferred Revenue Salaries Payable Notes Payablo McDoogan, Inc. Journal General - External Transactions Date Account Name Debit Credit Page 3 of 12 McDoogan Inc. Journal General Date Account Name Debit Credit