Leon Jackson is an entrepreneur who plans to start a Web site design and maintenance business called

Webworks. The First National Bank just approved a loan so he is now ready to purchase needed

equipment, hire administrative help, and begin designing sites. During June, his first month of business, the following events occur.

a. Webworks signs a note at the bank and is given $10,000 cash.

b. Jackson deposits $2,000 of his own money into the company checking account as his capital

contribution.

c. Webworks purchases a new computer and other additional equipment for $3,000 in cash.

d. Webworks purchases supplies worth $200 on account that should last Webworks two months.

e. Webworks hires Nancy Po to assist with administrative tasks. She will charge $100 per Web site

for her assistance.

f. Webworks begins working on its first two Web sites, one for Juan Sanchez (a friend of Jackson's

dad) and the other for Pauline Smith, a local businessperson.

g. Webworks completes the site for Mr. Sanchez and sends him a bill for $600.

h. Webworks completes the site for Ms. Smith and sends her a bill for $450.

i. Webworks collects $600 in cash from Mr. Sanchez

j. Webworks pays Nancy Po $100 for her work on Sanchez's Web site.

k. Webworks receives $500 in advance to work on a Web site for a local restaurant. Work on the site will not begin until July.

l. Webworks pays taxes of $200 in cash.

Required:

A. Show journal entries for the previous events if needed.

B. Post the journal entries to T-accounts.

C. Create an unadjusted trial balance for Webworks for June.

D. Show adjusting entries for the following events and post them to the proper Taccounts,

adding any additional T-accounts as necessary.

m. Webworks owes Nancy Po another $100 for her work on Smith's Web site.

n. The business is being operated in the house owned by Jackson's parents. They let him know that

Webworks owes $80 toward the electricity bill for June. Webworks will pay them in July.

o. Webworks only used half of the supplies purchased in (d) above.

E. make an adjusted trial balance for Webworks for June.

10. Jan Haley owns and operates Haley's Dry Cleaners. The ledger for this company is presented in the next figure with balances as of December 1, Year Two. The following occurred during that month.

a. On December 1, Haley prepaid rent on her store for December and January for $2,000 in cash.

b. On December 1, Haley purchased insurance with cash in the amount of $2,400. The coverage will

last for six months.

c. Haley paid $900 of her accounts payable balance.

d. Haley paid off all of her salaries payable balance.

e. Haley purchased supplies on account in the amount of $2,400.

f. Haley paid a salary to her assistant of $1,000 in cash for work done in the first two weeks of

December.

g. Haley dry-cleaned clothes for customers on account in the amount of $8,000.

h. Haley collected $6,300 of her accounts receivable balance.

i. Haley paid tax of $750 in cash.

Required:

A. Show the journal entry for each of these transactions.

B. Finish all necessary T-accounts with opening balances for the month of December.

C. Make a trial balance dated December 31, Year Two.

D. Make the following adjusting entries for the month of December and post them to the

T-accounts:

j. Rent expense:

k. Insurance expense:

l. Haley owes her assistant $1,000 for work done during the last two weeks of December.

m. An inventory of supplies shows $400 in supplies remaining on December 31.

E. Create an adjusted trial balance dated December 31, Year Two.

F. Show an income statement, statement of retained earnings, and balance sheet.

See Attachement