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, owner's equity, revenues, cost of goods sold and expenses. There is only one General Journal and one General Ledger (T-accounts), so don't worry about Subsidiary Ledgers or Special Journals for this assignment. T-accounts should have totals Part I 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. 1. Create T-accounts for each account in the chart of accounts and post each of the journal entries to an existing T-account. Total the T-accounts 3. Prepare an unadjusted trial balance 4. 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 p 2. Post the adjusting journal entries to the T-accounts you previously created. 3. Total the T-accounts 4. repare. Prepare an adjusted trial balance 5. Prepare the following financial statements, in good form Multistep Income Statement (you do not need to distinguish between selling expense and general & administrative expenses) Statement of Owner's Equity Classified Balance Sheet o o o 6. Prepare closing entries 7. Prepare a post closing trial balance Transactions Dan invested cash of $800,000 in the business. 7/2 Purchased tire balancing equipment for S96,000. 7/2 Purchased a wheel alignment rack for $450,000 7/3 Paid $7,500 to purchase 100 Firestone tires for passenger cars. 7/3 Paid $15,000 to purchase 100 Goodycar truck tires. 7/3 Paid $24,000 for 6 months rent paid in advance Sold 40 truck tires for $200 cach on account to SC County 7/4 Sold 36 truck tires for $200 each and 20 car tires for $100 each to Leak Tire Store. 7/5 Sold 68 car tires for $100 each to Joc Customer 7/6 7/15Paid our employees wages. Employees worked 400 hours at S12.50 per hour 7/16 SC County paid $8,000 on their account. Joe Customer paid S6,800 on his account. 7/18Leak Tire Store paid S9,200 on their account. 7/18 Purchased 88 Firestone tires for passenger cars for S6,600, on account. Purchased 76 Goodyear truck tires for $11,400 on account. 7/18 7/28 Paid $6,600, on our account with Firestone. 7/28 Paid $11,400 on our account with Goodyear Adjusting Entries 7/31 Accrue rent expense for the month 7/31Accrue depreciation expense on the balancing equipment ($3,000) 7/31Accrue depreciation expense on the alignment equipment (S10,000). 7/3 Accruc wage expenses for the second half of the month. Employees again worked 400 hours at $12.50 per hour
