Part One: General Instructions for completion of the accounting cycle through an adjusted trial balance.

Skip a line between journal entries Each T-account needs to have a title Postings to T-accounts need a date next to the dollar amount Accounts listed in Trial Balance and T-accounts should be arranged in the following

order: assets, liabilities, owners equity, revenues, cost of goods sold and expenses. There is only one General Journal and one General Ledger (T-accounts), so dont worry

about Subsidiary Ledgers or Special Journals for this assignment. T-accounts should have totals

Part I

1. Prepare journal entries to record each of the transactions on the next page. You do not need to write explanations below the journal entries. 2. Create T-accounts for each account in the chart of accounts and post each of the journal

entries to an existing T-account. 3. Total the T-accounts 4. Prepare an unadjusted trial balance

Part II

1. Prepare adjusting journal entries. Besides the information provided for adjusting journal entries, review the transactions and review your unadjusted trial balance for any other adjusting journal entries you may need to prepare. 2. Post the adjusting journal entries to the T-accounts you previously created. 3. Total the T-accounts 4. Prepare an adjusted trial balance 5. Prepare the following financial statements, in good form

o Multi Step Income Statement (you do not need to distinguish between selling expense and general & administrative expenses) o Statement of Owners Equity o Classified Balance Sheet 6. Prepare closing entries 7. Prepare a post closing trial balance

Transactions

7/1 Bruce invested cash of $900,000 in the business.

7/2 Purchased tire balancing equipment for $69,000. 7/2 Purchased a wheel alignment rack for $540,000.

7/3 Paid $7,500 to purchase 100 Firestone tires for passenger cars.

7/3 Paid $15,000 to purchase 100 Goodyear truck tires.

7/3 Paid $24,000 for 6 months rent paid in advance.

7/4 Sold 40 truck tires for $200 each on account to SC County.

7/5 Sold 36 truck tires for $200 each and 20 car tires for $100 each to Leak Tire Store on account.

7/6 Sold 68 car tires for $100 each on account to Joe Customer.

7/15 Paid our employees wages. Employees worked 400 hours at $12.50 per hour.

7/16 SC County paid $8,000 on their account. 7/17 Joe Customer paid $6,800 on his account.

7/18 Leak Tire Store paid $9,200 on their account.

7/18 Purchased 88 Firestone tires for passenger cars for $6,600, on account.

7/18 Purchased 76 Goodyear truck tires for $11,400 on account.

7/28 Paid $6,600, on our account with Firestone.

Chart of accounts Cash

Accounts Receivable SC County Accounts Receivable - Joe Customer Accounts Receivable - Leak Tire Store Inventory car tires Inventory truck tires Prepaid Rent Equipment - Tire Balancer Accumulated depreciation - balancer Equipment Alignment Rack Accumulated depreciation alignment rack Accounts Payable - Firestone Accounts Payable - Goodyear Wages Payable Bruce, Capital Sales Cost of Goods Sold Wage expense Rent expense Depreciation expense