Problem

The following transactions for Nielsen Architects occurred during December of the current year. Follow the step-by-step instructions to record the transactions, process the adjusting entries, and prepare the financial statements. You may click Info. on the toolbar for helpful check figures to audit your work.

Step 1: Start Integrated Accounting 8e.

Step 2: Open file IA8 Problem 08-A.

Step 3: Enter your name in the Your Name text box.

Step 4: Use Save As to save your file with a file name of 08-ABC Your Name (where 08-A identifies the problem, and BC represents Before Closing).

Step 5: Enter the following journal transactions directly into the General Journal tab.

Dec. 02 Purchased supplies on account from Lerner Supply Company, $315.00; Vendor Invoice No. 576.

03 Received cash on account from Foley Associates, Inc., covering Invoice No. 930 for $5,554.00.

04 Billed Rockmore Construction for consulting services, $4,025.00; Invoice No. 951.

06 Paid cash for electric bill, $136.13. Check No. 810.

08 Reimbursed a partner for business travel expense, $158.00. Check No. 811.

Note: Debit Travel Expense and credit Cash.

10 Paid cash on account to Riverview Media, Inc., $902.00. Check No. 812.

10 Billed Foley Associates, Inc. for consulting services, $3,250.00; Invoice No. 952.

12 Purchased supplies on account from Stolle Office Products, $148.50; Vendor Invoice No. 577.

16 Paid cash for advertising, $735.00. Check No. 813.

18 Paid cash on account to Stolle Office Products, $456.00. Check No. 814.

18 Billed Security Engineering Co. for consulting services, $4,800.00; Invoice No. 953.

18 Received cash on account from Security Engineering Co., covering Invoice No. 935 for $7,996.00.

20 Paid cash for telephone bill, $497.57. Check No. 815.

21 Purchased office equipment on account from Parker Office Products, $500.00; Vendor Invoice No. 578.

22 Reimbursed a partner for travel expenses, $315.00. Check No. 816.

23 Daniel Nielsen, a partner, withdrew cash for personal use, $2,450.00. Check No. 817.

23 Kari Nielsen, a partner, withdrew cash for personal use, $2,450.00. Check No. 818.

23 Glenn Weldon, a partner, withdrew cash for personal use, $2,100.00. Check No. 819.

28 Paid cash for miscellaneous expense, $65.00. Check No. 820.

28 Billed Randall Development Co. for consulting services, $2,500.00; Invoice No. 954.

30 Paid salaries expense, $1,810.62. Check No. 821.

31 Paid cash for rent expense, $935.00. Check No. 822.

Step 6: Display the journal entries and make corrections, if necessary.

Step 7: Display the trial balance.

Step 8: Display the schedule of accounts payable.

Step 9: Display the schedule of accounts receivable.

End-of-Month Activities

Use the following adjustment data for the month of December for Nielsen Architects and the trial balance report as the basis for preparing the adjusting entries.

Inventory of supplies on December 31	$2,105.00
Insurance expired during December	$110.00
Depreciation on office equipment for December	$228.74