Part 2

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the companys first three months:

1. The December 31 inventory count of computer supplies shows $580 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. Three of the four months' prepaid rent has expired.

Required:

1. Open your Excel file from Part 1 and save as YourName_ACCT305_PS2

2. Use the attached balances to update your unadjusted trial balance as of December 31, 2019.

Note: If necessary update your general ledger to ensure balances agree with these check figures. Do this by using Dec 31, 2019 as the date, Correct Balance as the item, and enter the correct balance in the balance column. (You will need to adjust formula in balance column moving forward.)

3. (2 points) Use the additional information provided to prepare adjusting entries. These entries should be recorded in your general journal and then posted to the general ledger.

4. (3 points) Record your adjusting entries to the Excel worksheet and prepare an adjusted trial balance as of December 31, 2019. Create a formula in the adjusted balance column for each account. (This formula should be such that if amounts in unadjusted column and/or the adjusting entry column changed, the adjusted balance would change.)

5. (3 points) Prepare the following financial statements:

1. Income statement for the three months ended December 31, 2019.
2. Statement of retained earnings for the three months ended December 31, 2019.
3. Balance sheet as of December 31, 2019.

Note: Statements may be prepared in a new worksheet in your Excel file or manually and uploaded as a PDF to Blackboard.

6. (1 points) Prepare/record closing entries in your general journal and then post to the general ledger.

7. (3 points) Complete your Excel spreadsheet through the closing process.

1. Create formulas in the adjusted trial balance columns to complete these cells. (These numbers should agree with your general ledger after posting adjusting journal entries.)
2. Record closing entries prepared earlier in the closing entries columns.
3. Create formulas to complete the post-closing trial balance. (These numbers should agree with your general ledger balances.)

8. (3 points) To ensure numbers have been carried over properly use the SUM formula to total your columns. Debit/credit columns must balance! Find and credit errors so they balance.

9. Upload your Excel spreadsheet to Blackboard.