QUESTION 1

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:CashLandNotes PayableDepreciation ExpenseAccounts ReceivableAccumulated DepreciationCommon StockSalaries ExpenseSuppliesAccounts PayableRetained EarningsSupplies ExpensePrepaid InsuranceDeferred RevenueDividendsRent ExpenseEquipmentSalaries PayableService RevenueInsurance Expense1-DecIssue common stock in exchange for cash of $8,500.1-DecPaid the premium in advance on a one-year insurance policy, $1,320.1-DecPurchased Equipment for $3,600 cash.5-DecPurchased office supplies from XYZ Company on account, $600.15-DecProvided services to customers for $8,400 cash.16-DecProvided services to customer ABC Inc. on account, $7,000.17-DecReceived $2,300 cash in advance fromacustomer for services to be provided in January.22-DecPaid $220 to XYZ company for theDec 5 purchase on account.23-DecReceived $3,000 cash from customer, ABC Inc., on account.25-DecPaid the rent for the current month, $1,250 .28-DecPaid salaries to employees for work performed from December 1 through December 28, $5,040.29-DecDeclared and paid dividends to stockholders $400.30-DecPurchasedland by signing3 yearnote payable for $11,000.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.1Provide the total of the credit column from the Unadjusted Trial BalanceStep 5:Record the December adjusting entries on the "General Journal" tab.31-DecOne month's insurance has expired $110.31-DecThe remaining inventory of unused office supplies is $90.31-DecThe estimated depreciation on equipment is$60.31-DecSalaries incurred from December 29 to December 31 but not yet paid or recorded total $540.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 =$38,180
3. Provide the following amounts from the Adjusted Trial Balance:(Be sure to enter all numbers as positive and no answer should be left blank.)
4. 2Cash3Accounts Receivable4Supplies5Prepaid Insurance6Equipment7Land8Accumulated Depreciation9Accounts Payable10Deferred Revenue11Salaries Payable12Notes Payable13Common Stock14Retained EarningsStep 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 Revenue16Depreciation Expense17Salaries Expense18Supplies Expense19Rent Expense20Insurance Expense21Net IncomeProvide the following account balances from the Balance Sheet: (Be sure to enter all numbers as positive and no answer should be left blank.)22Current Assets23Long-TermAssets24Current Liabilities25Long-Term Liabilites26TotalLiabilities27Total Stockholder's EquityProvide 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.)28DividendsStep 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 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 Balance30Provide the balance of the Retained Earnings T-account after closing entries have been posted.Check Point 2: Total Assets$30,210

195 points

QUESTION 2

1. 31Does the ending balance of the Retained Earnings t-account agree with the balance
2. of Retained Earnings on the Balance Sheet?
3. Yes
4. No