1. Journal all Transactions in Part One
2. Using the Chart of Accounts, open ledger accounts and post journals to the ledger account.
3. Prepare a Trial Balance
4. Due the Adjusting Entries
5. Prepare the Adjusted Trial Balance
6. Prepare the following statements:
7. Income Statement
8. Retained Earnings Statements
9. Balance Sheet

Part One

The following transaction occurred for orange inc. for the month of December 31, 1820.

James orange invested $50,000 cash along in the company in exchange for common stock.

The company prepaid $500 for 12 months rent.

The company purchased $100 in office supplies. Payment due withing 10 days

Orange inc. completed services for a client and immediately received $2,000.

The company completed $1,500 project for a client. The client was billed, and must be paid within 30 days.

The company paid the $100 cash to settle the A/P created in letter C.

The company received $750 in cash as partial payment for the work completed in item D.

The company paid a $50 cash dividend.

The company paid its coal heating bill for $10 in cash.

Adjustments:

Two Thirds of the $600 dollars paid in advance to orange inc. has now been earned.

The company had $25 dollars in office supplies at the end of the year.

The company had $100 of Accumulated Depreciation Building at the end of the year.

Chart of Accounts

101 Cash

102 A/R

103 Supplies

104 Pre-paid Rent

105 Accumulated Depreciation - Building

201 A/P

202 Unearned Revenue

301 C/S

302 Dividends

400 Revenue

600 Heating Expense

601 Depreciation Expense - Building

602 Rent Expense

603 Supplies Expense