Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 options: Step 1: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file Accounting Cycle
Question 1 options:
Step 1: | Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: | |||||||||||
Cash | Land | Notes Payable | Depreciation Expense | |||||||||
Accounts Receivable | Accumulated Depreciation | Common Stock | Salaries Expense | |||||||||
Supplies | Accounts Payable | Retained Earnings | Supplies Expense | |||||||||
Prepaid Insurance | Deferred Revenue | Dividends | Rent Expense | |||||||||
Equipment | Salaries Payable | Service Revenue | Insurance Expense | |||||||||
Dec 1: | Issued common stock for $7,000 cash. | |||||||||||
Dec 1: | Paid $720 in advance for a one-year insurance policy. | |||||||||||
Dec 1: | Purchased equipment for $4,800 cash. | |||||||||||
Dec 5: | Purchased supplies for $500 on account from XYZ Company. | |||||||||||
Dec 15: | Provided services to customers for $5,800 cash. | |||||||||||
Dec 16: | Provided services to customer ABC Inc. on account for $3,100. | |||||||||||
Dec 17: | Received cash of $1,000 in advance from customers for services to be provided in January. | |||||||||||
Dec 22: | Paid $240 to XYZ company for the Dec 5 purchase on account. | |||||||||||
Dec 23: | Received $1,700 cash from customer ABC Inc., on account related to the Dec 16 transaction. | |||||||||||
Dec 25: | Paid $600 rent for the current month. | |||||||||||
Dec 28: | Paid salaries to employees $4,760 for work performed from Dec 1 to Dec 28. | |||||||||||
Dec 29: | Declared and paid cash dividends of $300 to stockholders. | |||||||||||
Dec 30: | Purchased land by signing a long-term note for $6,000. | |||||||||||
Step 2: | Post all of the transactions from the "General Journal" tab to the T-accounts under the "T-Accounts/General Ledger" tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts. | |||||||||||
Step 3: | Compute the unadjusted balance for each T-account after all of the December entries have been posted. | |||||||||||
Step 4: | Prepare the unadjusted trial balance on the "Unadjusted Trial Balance" tab. |
1 - Provide the total of the credit column from the Unadjusted Trial Balance
Step 5: | Record the December adjusting entries on the "General Journal" tab. |
Dec 31: One month insurance has been used.
Dec 31: Supplies remaining at the end of the month total $90.
Dec 31: The estimated depreciation on equipment is $80.
Dec 31: Salaries incurred from December 29 to December 31 but not yet paid or recorded total $510.
Step 6: | Post all of the adjusting entries to the T-accounts under the "T-Accounts/General Ledger" tab. Compute the adjusted balance for each T-account after all of the adjusting entries have been posted. |
Step 7: | Prepare the adjusted trial balance under the "Adjusted Trial Balance" tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx". |
Check point 1: Adjusted trial balance total debit/credit = $23,750
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started