microeconomics unit $1$

$1$

A dog training business began on December $1.$ The following transactions occurred during its first month.

December $1$ Receives $$31,000$ cash as an owner Investment,

December $2$ Pays $$7,320$ cash for equipment.

December $3$ Pays $$4,260$ cash $($insurance premium$)$ for a $12-$month insurance policy. Coverage began on December $1.$

December $4$ Pays $$1,220$ cash for December rent expense.

December $7$ Provides all$-$day training services for a large group and immediately collects $$1,650$ cash.

December $8$ pays $$255$ cash in wages for part$-$time help.

December $9$ Provides training services for $$2,620$ and rents training equipment for $$710.$ The customer is billed $$3,330$ for these services.

December $19$ Receives $$3,330$ cash from the customer billed on Dec. $9.$

December $20$ Purchases $$2,110$ of supplies on credit from a supplier.

December $23$ Receives $$1,820$ cash in advance of providing a $4-$week training service to a customer.

December $29$ Pays $$1,355$ cash as a partial payment toward the accounts payable of Dec. $20.$

December $30$ Withdrawal of $$555$ cash by the owner for personal use.

Information for month$-$end adjustments follows:

December $31$ One month of the $12-$month, $$4,260$ insurance policy is expired by December $31.$ This leaves $$3,905$ not yet expired.

December $31$ A physical count of supplies on December $31$ shows that only $$1,255$ of supplies remain of the $$2,110$ supplies purchased.

December $31$ The $$7,320$ of equipment purchased at the beginning of December has a useful life of $5$ years and will be worth nothing at the end of $5$ years $(60$ months$).$ The business uses straight$-$line depreciation to allocate the $$7,320$ net cost over $60$ months. On December $31,1$ month of depreciation must be recorded.

December $31$ The business agreed on December $23$ to provide a $4-$week training service to a customer for a fixed fee of $$1,820$ paid in advance. By December $31,$ the business has provided $1$ of the $4$ weeks of services and earned one$-$fourth of the fee. No revenue is yet recorded.

December $31$ On December $31,$ wages of $$655$ are owed to a part$-$time employee for work done over the past $3$ weeks. Those wages are not yet paid or recorded.

December $31$ The business agreed to provide $6$ weeks of training services to a customer for a fee of $$4,530,$ or $$755$ per week. The customer agrees to pay the full $$4,530$ at the end of $6$ weeks when services are complete. By December $31,2$ weeks of services have been provided, but the business has not yet billed the customer or recorded the $2$ weeks of services provided.

Requirement

General

General

Trial Balance

Income

St Owners

Balance Sheet

Post Closing

Each journal entry is posted automatically to the general ledger. Use the drop$-$down button to view the unadjusted,