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Instructions Perform the following steps of the accounting cycle for the month of December, Year 1 . Journalize the December transactions. Do not record adjusting

Instructions
Perform the following steps of the accounting cycle for the month of December, Year 1.
Journalize the December transactions. Do not record adjusting entries at this point.
Post the December transactions to the appropriate ledger accounts.
Prepare the unadjusted trial balance columns of a 10-column worksheet for the year ended December 31.
Prepare the necessary adjusting entries on December 31.
Post the December adjusting entries to the appropriate ledger accounts.
Complete the 10-column worksheet for the year ended December 31.
page 249Prepare an income statement and statement of retained earnings for the year ended December 31, and a balance sheet as of December 31, Year 1.
Prepare required disclosures to accompany the financial statements dated December 31, Year 1. Your disclosures should include separate write-ups addressing each of the following areas: (1) depreciation policy, (2) maturity dates of major liabilities, and (3) potential liability due to pending litigation.
Prepare closing entries and post them to ledger accounts.
Prepare an after-closing trial balance as of December 31, Year 1.
During December, the companys cash balance fell from $240,000 to $78,000. Does this imply that the business is headed for insolvency in the near future? Explain your reasoning.
Would it be ethical for Patty Driver to maintain the accounting records for this company, or must they be maintained by someone who is independent of the organization?

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