Question
PLEASE HELP WITH STEP 1 THROUGH 6 On August 1, 2022, the following were the account balances of B&B Services. During August, the following summary
PLEASE HELP WITH STEP 1 THROUGH 6
On August 1, 2022, the following were the account balances of B&B Services. During August, the following summary transactions were completed.
1 Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September.
3 Paid August rent $380.
5 Received $1,200 cash from customers in payment of account.
10 Paid $3,120 for salaries due employees, of which $1,700 is for August and $1,420 is for July salaries payable.
12 Received $2,800 cash for services performed in August.
15 Purchased store equipment on account $2,000.
20 Paid creditors $2,000 of accounts payable due.
22 Purchased supplies on account $800.
25 Paid $2,900 cash for employees salaries.
27 Billed customers $3,760 for services performed.
29 Received $780 from customers for services to be performed in the future.
Here are the adjustments that were made on August 31st:
1 A count shows supplies on hand of $960.
2 Accrued but unpaid employees salaries are $1,540.
3 Depreciation on equipment for the month is $320.
4 Services were performed to satisfy $800 of unearned service revenue.
5 One months worth of advertising services has been received.
6 One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate.
The chart of accounts also includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. You will need to complete the following:
Step 1 Enter the August 1 balances in the general ledger accounts (General Ledger tab)
Step 2 Journalize the August transactions (Journal Entries tab)
Step 3 Post the journal entries in Step 2 to the general ledger accounts (General Ledger tab)
Step 4 Prepare a trial balance as of August 31 (Trial Balance tab)
Step 5 Prepare the adjusting entries (Adjusting Entries tab) and post the adjusting journal entries to the general ledger accounts (General Ledger tab)
Step 6 Prepare an adjusted trial balance (Adjusted Trial Balance tab)
Step 7 Prepare the financial statements (Income Statement, Statement of Retained Earnings, Balance Sheet, & Statement of Cash Flows on Financial Statements tab)
Step 8 Prepare the closing entries (Closing Entries tab) and post the closing journal entries to the general ledger accounts (General Ledger tab)
Step 9 Prepare a post closing trial balance (Post Closing Trial Balance tab)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Certainly Heres a detailed solution for Steps 1 through 6 Step 1 Enter the August 1 Balances in the General Ledger Accounts Assuming the account balan...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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