New Slang Pest Control has the following balances in selected accounts on December 1, 2013. Cash $ 59,560 Accounts Receivable 3,000 0 Accumulated Depreciation - Equipment Equipment 0 Accounts Payable 0 0 Interest Payable Notes Payable 15,000 Prepaid Insurance 2,220 Salaries and Wages Payable 0 Supplies 0 Unearned Service Revenue 30,000 10,000 Common Stock Retained Earnings 9,780 All of the accounts have normal balances. The accountants are completing the accounting cycle when they prepare the financial statements for fiscal year 2013. During December 2013, there are the following transactions incurred: 1. On December 2, New Slang Pest Control purchased a new pest control machine on account. The purchase price of the machine is $6,650. 2. On December 4, New Slang Pest Control received $3,000 from a customer for the service which was billed in September. On December 10, New Slang Pest Control purchased $2,940 supplies in cash. 4. On December 30, New Slang Pest declares cash dividends of $500. 3. The information below has been gathered at December 31, 2013 for adjusting entries: 5. Depreciation on the equipment for 2013 is $1,300. 6. New Slang Pest Control borrowed $15,000 by signing a 10%, one-year note on July 1, 2013. (Hint: No interest expense has been recorded between July and December, so six-month interest expense should be recorded for the year of 2013.) 7. New Slang Pest Control paid $2,220 for 12 months of insurance coverage on October 1, 2013. (Hint: No insurance expense has been recorded between October and December, so three-month insurance expense should be recorded for the year of 2013.) 8. New Slang Pest Control pays its employees total salaries of $11,000 every Monday for the preceding 5-day week (Monday-Friday). On Monday, December 27, 2013, employees were paid for the week ending December 24, 2013. All employees worked the five days ending December 31, 2013. 9. New Slang Pest Control performed disinfecting services for client A in December 2013. The client will be billed $3,200. 10. On December 1, 2013, New Slang Pest Control collected $30,000 from client B for disinfecting processes to be performed from December 1, 2013, through May 31, 2013. (Hint: The service has been performed for one month by December 31, 2013.) 11. A count of supplies on December 31, 2013, indicates that supplies of $650 are on hand. Please complete the following: (1) post the beginning balance of December 2013 (December 1, 2013) to T-accounts and the Trial Balance on answer sheet for each account separately. (2) journalize transactions 1-4 in December 2013, (3) post the four journals to T-accounts prepared under (1), calculate the normal balance for each account before adjustments, (4) prepare a trial balance in the Trial Balance ("Before Adjustement"), (5) journalize adjusting entries and post them to the previously prepared T-accounts, (6) prepare an adjusted trial balance in the Trial Balance ("After Adjustement"), (7) journalize closing entries through "Income Summary" and post them to the previously prepared T-accounts, and (8) prepare a post-closing trial balance in the Trial Balance ("After Closing Entries")
