QUESTION 1

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 LandNotes PayableDepreciation Expense

Accounts ReceivableAccumulated DepreciationCommon StockSalaries Expense

Supplies Accounts PayableRetained EarningsSupplies Expense

Prepaid Insurance Deferred RevenueDividends Rent Expense

Equipment Salaries Payable Service RevenueInsurance Expense

1-DecIssue common stock in exchange for cash of $7,000.

1-DecPaid the premium in advance on a one-year insurance policy,$720.

1-DecPurchased Equipment for $4,800 cash.

5-DecPurchased office supplies from XYZ Company on account, $500.

15-DecProvided services to customers for $5,800cash.

16-DecProvided services to customer ABC Inc. on account, $3,100.

17-DecReceived $1,000 cash in advance from a customer for services to be provided in January.

22-DecPaid$240 to XYZ company for the Dec 5 purchase on account.

23-DecReceived$1,700 cash from customer, ABC Inc., on account.

25-DecPaid the rent for the current month, $600.

28-DecPaid salaries to employees for work performed from December 1 through December 28, $4,760.

29-DecDeclared and paid dividends to stockholders $300.

30-DecPurchased land by signing 3 year note payable for $6,000.

Step 2: Post all of the December transactions from the "General Journal" tab to the T-accounts under the "T-Accounts" 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 balance for each T-account after all of the 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.

31-DecOne month's insurance has expired $60.

31-DecThe remaining inventory of unused office supplies is $90.

31-DecThe estimated depreciation on equipment is$80.

31-DecSalaries 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 on the "T-Accounts" tab.Compute the balance for each T-account after all of the adjusting entries have been posted.

Step 7: Prepare the adjusted trial balance on the "Adjusted Trial Balance" tab.

Check point 1: Adjusted trial balance total debit/credit = $23,750

Provide the following amounts from the Adjusted Trial Balance: (Be sure to enter all numbers as positive and no answer should be left blank.)

2Cash

3Accounts Receivable

4Supplies

5Prepaid Insurance

6Equipment

7Land

8Accumulated Depreciation

9Accounts Payable

10Deferred Revenue

11Salaries Payable

12Notes Payable

13Common Stock

14Retained Earnings

Step 8: 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: (Be sure to enter all numbers as positive and no answer should be left blank.)

15Service Revenue

16Depreciation Expense

17Salaries Expense

18Supplies Expense

19Rent Expense

20Insurance Expense

21Net Income

Provide the following account balances from the Balance Sheet: (Be sure

to enter all numbers as positiveand no answer should be left blank.)

22Current Assets

23Long-Term Assets

24Current Liabilities

25Long-Term Liabilites

26Total Liabilities

27Total Stockholder's Equity

Provide the following account balance from the Statement of stockholders' Equity: (Be sure to enter all numbers as positive and no answer should be left blank.)

28Dividends

Step 9: Record the closing entries on the "General Journal" tab.

Step 10: Post all of the closing entries to the T-accounts on the "T-Accounts" tab.Compute the balance f

for each T-account after all of the closing entries have been posted.

Step 11: Prepare the post closing trial balance for the month ended December 31, 20XX on the Post-Closing Trial Balance tab.

29Provide the total of the debit column from the Post Closing Trial Balance

30Provide the balance of the Retained Earnings T-account after closing entries have been posted.

Check Point 2: Total Assets $16,950

QUESTION 2

31Does the ending balance of the Retained Earnings t-account agree with the

balanceof Retained Earnings on the Balance Sheet?Yes or no