Page 3 December 16- Mabel billed clients a total of $1,779 for services provided during the first half of the month. December 19-Mabel paid half of the open accounts payable balance. December 20- Mabel created a step-by-step manual to sell to clients. She produces the manual in the office to save on costs. She sells the manuals for $190 each. She sold a total of 5 manuals during December, and the state sales tax is 4%. Sales tax is to be remitted to the proper agencies next month. (Manuals are produced as requested, so there is no inventory to keep track of. Also, as the materials used are minimal and come out of existing office supplies, there is no need to record cost of goods sold.) December 27 - Mabel received and paid the internet and phone bill for December in the amount of $305. December 28-Mabel received and paid the utility bill for December in the amount of $337. December 29 - Mabel pays herself a dividend of $2,000. December 29 -Mabel received $800 for services provided to clients. December 31- Accruals that need entries for the month of December: . . . The assistant is owed $1,300 for hours worked during the second half of December. Mabel had completed one half of the services she received prepayment for on December 4. Unbilled services for the month of December total $900. One month of prepaid rent expired. One month of prepaid insurance expired. Supplies on hand at the end of the month total $29. Depreciation of $120 on the iPad and the furniture needs to be recorded for the month of December. The copier/printer is determined to have a useful life of 4 years, and has no residual value. Mabel decided to use the double-declining balance method for this equipment. Depreciation needs to be recorded for the one month that it was in service. (Hint: calculate the double-declining balance depreciation for the first year, then determine how much should be recorded for one month.) The petty cash balance on December 31 is $57. Expenses include snacks and drinks for office (use supplies expense account), $153; postage & shipping, $55; miscellaneous expenses, $35. PART 3: Prepare an income statement, statement of stockholders' equity and balance sheet for the fiscal year end, December 31, 2022. Prepare the year end closing entries. Prepare a post-closing trial balance. Turn in the financial statements, journal entries, and post-closing trial balance by the due date, either submitted in the Dropbox in Dal, emailed to the instructor, or turned into the instructor during class. 2 B DATE D E DEBIT ACCOUNT CREDIT ACCOUNT 12/31 12/31 5 6 27 28 29 Sheet4 Sheet1 F G DEBIT AMOUNT CREDIT AMOUNT H Account Name Accounts payable Accounts receivable B Accumulated depreciation 9 Bad debt expense Mabel's Consulting Services, Inc. Post-Closing Trial Balance As of December 31, 2022 10 Cash 11 Depreciation expense 12 Dividends 13 Insurance expense 14 Internet and telephone expense 15 Misc. expense 16 Office equipment and furniture 17 Office supplies 18 Petty cash 19 Postage and shipping expense 20 Totals 21 22 Difference between debits and credits 23 (should equal 0) 24 25 26 27 28 Debit Balances Credit Balances 1 2 3 4 5 Revenues: 6 7 8 9 Expenses: 10 11 12 12 13 13 14 15 16 17 18 19 A B C D E Mabel's Consulting Services, Inc. Income Statement For the Year Ended December 31, 2022 IS SSE BS Sheet1