Presented below is the November 30, 2019, umadjusted trial balance of Addison's Beauty Salon, which is owned by Addison Corporation. The temporary account balances represent the results of entries recorded during the first 11 months of 2019, and the balance in Addison's common stock and retained earnings accounts have not changed since December 31, 2018. Currently, 5,000 shares of stock are outstanding and 20,000 shares have been authorized. All income tax effects are to be ignored for this project. Addison's Beauty Salon Unadjusted Trial Balance November 30, 2019 REF DEBIT CREDIT Cash Make-Up Inventory 111 251,000 112 10,500 Supplies Inventory 113 8,500 Prepaid Salon Rental 114 13,500 Equipment 131 263,500 Accumulated Depreciation, Equipment 132 123,300 Building 135 420,000 Accumulated Depreciation, Building 136 122,000 Accounts Payable 211 21,100 Wages Payable 212 0 Utilities Payable 213 0 Interest Payable 214 0 Unearned Appointment Revenue 215 3,500 Long-Term Notes Payable 231 45,300 Common Stock ($10 par value) 311 73,800 Retained Earnings 312 290,000 Dividends 313 Income Summary 314 Appointment Revenue 411 700,000 Make-Up Revenue 412 407,000 Wages Expense 511 455,000 Salon Rental Expense 512 200,000 Make-Up Expense 513 125,000 Supplies Expense 514 0 Utilities Expense 515 17,500 Advertising Expense 516 6,800 Maintenance Expense 517 14,700 Depreciation Expense, Equipment 518 0 Depreciation Expense, Building 519 0 Interest Expense 520 0 Totals $1.786.000 $1.786.000 The following transactions occurred during the month of December 2019: Dec. 56699 7 10 02 12 Paid accounts payable of $6,000 Paid salon rental of $5,000 in advance. Purchased supplies, $600, on account. Deposited $20,000 of appointment services' receipts. Unearned appointment revenue is for gift certificates purchased for future hair salon appointments. $600 more of these gift certificates were sold to a local restaurant business, for cash. Purchased $5,000 of make-up items on credit. Acquired additional equipment worth $25,000 by paying $700 cash and giving a long-term note payable for the balance. Paid wages of $21,000 for the period December 1 through 14. Paid for the supplies purchased on December 6. Purchased $8,900 of supplies on credit. Sold 500 shares of $10 par value common stock for $10 a share. Deposited $19,700 from appointment services and $12,000 from make-up receipts. Paid $2,500 for repairs at the hair salon. 14 16 17 19 21 24 25 27 Paid for the supplies purchased on December 17. 28 Paid wages of $13,000 for the period December 15 through 28. 30 Paid $6,000 to newspaper for advertisements that appeared in December. 31 31 Purchased $4,000 of make-up items on account. Deposited $20,000 from appointment services and $17,000 from make-up sales. Declared and paid the annual dividend, amounting to $9,000. REQUIREMENTS Please follow these instructions carefully! 1. Prepare journal entries to record the December transactions listed above. 2. Post the December journal entries to the general ledger. 3. Prepare a 6-column worksheet and enter the December 31 unadjusted balances from the general ledger accounts. Also enter adjusting entries for the following items on the worksheet, and complete the worksheet a. Unpaid wages were $5,300 as of December 31. b. The December 31 make-up inventory was $1,700. c. The supplies inventory was $5,000 on December 31. d. The unexpired portion of the prepaid salon rental was $3,100 as of December 31. e. Depreciation for the year on the equipment was $11,000. f Depreciation for the year on the building was $32,000. Unpaid utilities expense for December was $2,100. h. Interest expense on the note payable for 2019 was $1,800, to be paid when the note matures. i Appointment gift certificates still unredeemed at December 31 totaled $3,100 4. Journalize and post the adjusting entries to the general ledger. These are the same adjustments that are recorded on the 6- column worksheet 5. Prepare an income statement, statement of retained earnings, and a balance sheet for the year ended December 31, 2019. 6. Journalize and post the closing entries to the general ledger