ou have been called in to help Sarah Singer who has operated a part-time graphic design business from her home. Her accountant has decided to quit working for her and Singer has decided she needs a more organized approach to keeping his accounting records. (Singer has kept his accounting records in a big file cabinet). Singer has decided to move to a rented office space and is planning to operate the business on a full-time basis. The business will be known as Sarah's Designs, Inc. Singer also has the following transactions that took place during the month of Sept 2019:

• Sept 1. The following assets were received from Sarah Singer in exchange for common stock: Cash, $ 25,800; accounts receivable, $ 4,500; supplies, $2,500 and Office Equipment, $ 16,500. There were no liabilities received.
• Sept 1. Paid three months' rent in advance on a lease rental contract, $3,600.
• Sept 2. Paid the premiums on property and casualty insurance policies, $ 1,800. ( The policy is for six months)
• Sept 4. Received cash from the Gaines Company as an advance payment for services to be provided and it will be recorded as unearned fees for $ 4,200.
• Sept 5. Purchased a new computer on account from Brown's Computer Nook for $ 3,600. The useful life has been determined to be 5 years.
• Sept 6. Received cash from clients on account for $ 2,600.
• Sept 9. Paid cash to the Mason Tribune for a newspaper advertisement, $ 240.
• Sept 12. Recorded services provided on account to various clients for the period of September 1 thru 12, for $ 5,700.
• Sept 13. Paid Brown's Computer Nook for part of the liability incurred on Sept 5, $ 690.
• Sept 14. Paid part-time receptionist for two weeks' salary, $ 1,100.
• Sept 17. Paid cash for supplies, $ 1,000.
• Sept 20. Purchased additional office equipment on account from Cabrillo Office Supply store for $ 2,650.
• Sept 20. Recorded services provided on account to various clients for the period of Sept 13-20, $ 4,360.
• Sept 24. Received cash from clients for fees earned during the period of Sept 17 thru 24, $ 6,100.
• Sept 26. Received cash from clients on account from Sept 12 services, $ 2,200.
• Sept 27. Paid part-time receptionist for two weeks salary, $ 1,100.
• Sept 29. Paid telephone bill for September, $ 370.
• Sept 29. Paid electricity bill for September, $ 515.
• Sept 30. Recorded cash from clients for fees earned for the period of Sept 25-30, $ 3,450.
• Sept 30. Recorded services provided on account for the remainder of Sept, $ 2,100.
• Sept 30. Paid dividends of $ 2,500.

Possible adjustment data for Sarah's Designs, Inc. as of Sept 30, 2019:

1. Insurance expired during Sept is $300.
2. Supplies on hand on Sept 30 is $ 2,130.
3. Monthly depreciation of office equipment is $ 320.
4. Monthly depreciation of computer is $ 60
5. Rent expired during Sept is $1,200.
6. Accrued receptionist salary on Sept 30 is $ 200.
7. Unearned fees on Sept 30 is $ 3,600.

Deliverables for this project:

• Your job is to review the transactions and help Sarah Singer develop a chart of accounts that Sarah's Designs, Inc. will utilize in the future.
• Your next task to record these transactions using Excel. You will need to create a general journal and a general ledger for Sarah's Designs, Inc.

WHAT'S REQUIRED:

1. Prepare the adjusting entries

2. Post the adjusting entries to the general ledger

3. Prepare the adjusted trial balance

4. Prepare the financial statements for the month of September