Project 1 - The Accnunting Cyde - Arct IA-Summer 2020 Kelly Reilly owns a decorating service call & Decorating and provides its services for a fee. Kelly has hired you to prepare the books and financial statements She provided the following information 1. The following is the December 31, 200 post closing trial balance ACCOUNT DENT CREDIT Cash $200,000 Supplies 20,000 Equipment 100,000 Accumulated Depreciation $10.000 Miscellaneous Payables 40,000 Salaries Payable 4,000 Long Term Note Payable 50.000 K. Reilly, Capital 216.000 $320,000 $320.000 The following transaction occurred during January 2013 1. Purchased additional supplies for $12000 cm (record the ability as Miscellaneous Liability 2. Paid salaries owed to employees at December 31 200 3. Provided decorating services for $84,000 cash 4. Pais entire balance in Accounts Payables (including purchase in 1abwe) S. Purchased $15,000 worth of supplies on account (use Miscellaneous Payables.) 6. Pald six months worth of rent on buildings for $6,000, starting in January 7. Made a payment on the long-term loan of $5,000 of this amount $950 was principal and $50 was interest for many Additional information: 1. There was $5,000 worth of supplies left on hand at the end of the month 2. The equipment is being depreciated at $833 per month 3. Atmonth end the following expenses for January to be paid in February) has not been recorded: Utilities $350 and Salaries $4,600 Previous Next hboard Calendar To Do Notifications Inbi Project 1 - The Accounting Cycle - Acct IA-Summer 2020 Required 1. Set up ledger (Taccounts) and post the beginning balances 2. Prepare journal entries for each of the transactions and post them to the ledgers. 3. Prepare unadjusted trial balance on the end of period (EDP) worksheet. 4. Journalize the adjusting entries needed for depreciation, supplies, rent and accrued liabilities, place adjustments on the EOP worksheet S. Prepare an adjusted trial balance on the BOP worksheet 6. Extend the adjusted trial balance to prepare the Income Statement and Balance Sheet on the EOP worksheet. 7. Prepare the four basic financial statements for the month of January: Income Statement, Statement of Owner's Equity, Balance Sheet & Statement of Cash Flows. 8. Prepare the closing entries and post to ledger. 9. Prepare post closing trial balance. Previous Nex 0 C