Prepare journal entries to record the December transactions

General Journal
Date	Description	Debit	Credit
1-Dec	cash	$ 6,000
	common stock		$ 6,000
1-Dec	prepaid insurance	$ 480
	cash		$ 480
1-Dec	prepaid equipment	$ 3,600
	cash		$ 3,600
5-Dec	supplies	$ 400
	account payable		$ 400
15-Dec	cash	$ 5,400
	service revenue		$ 5,400
16-Dec	account receivable	$ 2,500
	service revenue		$ 2,500
17-Dec	cash	$ 800
	deferred revenue		$ 800
22-Dec	account payable	$ 220
	cash		$ 220
23-Dec	cash	$ 1,500
	account receivable		$ 1,500
25-Dec	rent expense	$ 500
	cash		$ 500
28-Dec	salaries expense	$ 4,200
	cash		$ 4,200
29-Dec	dividends	$ 200
	cash		$ 200
30-Dec	land	$ 5,000
	note payable 3years		$ 5,000
31-Dec	insurance expense (11 month x $40)	$ 440
	prepaid insurance		440
31-Dec	supplies expence	$ 90
	supplies		90
31-Dec	depreciation expense	$ 60
	accumulated depreciation		60
31-Dec	salaries expence	$ 450
	salaries payable		450

Step 1: Post all of the adjusting entries to the T-accounts on the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted.

Step 2: Prepare the adjusted trial balance on the “Adjusted Trial Balance” tab.

Check point 1: Adjusted trial balance total debit/credit = $ 20,390

Provide the following amounts from the Adjusted Trial Balance:

1. Cash ________

2. Accounts Receivable ________

3. Supplies ________

4. Prepaid Insurance ________

5. Equipment ________

6. Land ________

7. Accumulated Depreciation________

8. Accounts Payable ________

9. Deferred Revenue ________

10. Salaries Payable ________

11. Notes Payable ________

12. Common Stock ________

13. Retained Earnings ________

Step 3: Prepare the Income Statement, Statement of Stockholder’s Equity and Classified Balance Sheet on the “Financial Statements” tab for the month ended December 31, 20XX. Provide the following amount from the Income Statement:

14. Service Revenue ________

15. Depreciation Expense ________

16. Salaries Expense ________

17. Supplies Expense ________

18. Rent Expense ________

19. Insurance Expense ________

20 Net Income ________

Provide the following account balances from the Balance Sheet:

21. Current Assets _______

22. Long-Term Assets ________

23. Current Liabilities ________

24. Long-Term Liabilities ________

25. Total Liabilities ________

26. Total Stockholder’s Equity ________

Provide the following account balance from the Statement of stockholders' Equity:

27. Dividends ________

Step 4: Record the closing entries on the “General Journal” tab.

Step 5: Post all of the closing entries to the T-accounts on the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted.

Step 6: Prepare the post closing trial balance for the month ended December 31, 20XX on the Post-Closing Trial Balance tab.

28. Provide the total of the debit column from the Post Closing Trial Balance ___________

29. Provide the balance of the Retained Earnings T-account after closing entries have been posted. __________

Check Point 2: Total Assets $ 14,570