Instructions

1. The chart of accounts and the post-closing trial balance as of September 31, 2022 are given. For each account in the pos-closing trial balance, enter the balance in the appropriate Balance column of the General Ledger. Date the balances September 30, 2022, and place a check mark ( ) in the Posting Reference column. Journalize each of the October transactions in the journal provided using Target Companys chart of accounts. (Do not insert the account numbers in the journal at this time).

1. Post the journal to the ledger. (Remember to enter Post References)

1. Prepare an unadjusted trial balance.

1. At the end of October, the following adjustment data was assembled. Use the data to complete instructions ( 5 ) and ( 6 ):

• Supplies on hand were $1,400
• Rent expired during the month $1,700
• Unearned fees at the end of he month was $2,500
• Insurance expired during the month was $400
• Accrued salaries payable were $320
• Depreciation on equipment during the month was $425

1. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet/worksheet and complete the worksheet as you continue with the project.

1. Journalize and post adjusting entries.

1. Prepare an adjusted trial balance.

1. Create the closing journal entries and post them to the ledgers. Indicate closed accounts in the ledger by inserting a line in both of the Balance columns opposite each closing entry.

1. Prepare an Income Statement, Statement of Owners Equity, and Balance Sheet. (Remember to use correct headings)

1. Prepare the post-closing trial balance for October 31, 2023.

Target Company: Chart of Accounts

11 Cash

12 Accounts Receivable

14 Supplies

15 Prepaid Rent

16 Prepaid Insurance

18 Office Equipment

19 Accumulated Depreciation

21 Accounts Payable

22 Salaries Payable

23 Unearned Fees

31 T. Arget, Capital

32 T. Arget, Drawing

41 Fees Earned

51 Salary Expense

52 Rent Expense

53 Supplies Expense

54 Depreciation Expense

55 Insurance Expense

59 Miscellaneous Expense

Target Company

Post Closing Trial Balance

September 30, 2023

DEBIT CREDIT

Cash 24,600

Accounts Receivable 5,200

Supplies 1,750

Prepaid Rent 3,400

Prepaid Insurance 1,600

Office Equipment 12,500

Accumulated Depreciation 425

Accounts Payable 500

Salaries Payable 400

Unearned Fees 500

T. Arget, Capital 47,225

49,050 49,050

Target Company had the following transactions occur in October 2023:

Oct 1 Received $9,800 cash for fees earned for jobs completed.

2 Paid September electricity bill, $675.

5 Purchased supplies on account, $3,250.

7 Paid $1,600 technician salary, including the amount owed at the end of September.

8 Billed customers for services provided on account $8,200.

9 Paid $3,500 on account.

12 Received cash from customers as an advance payment for tech support services to be provided in the future, $8,000.

14 Received cash from customers on account, $12,000.

19 Billed customers for services provided on account, $7,800

21 Paid technician salary, $1,600.

31 T. Arget withdrew $5,000 for personal use.