Requirement 1. Prepare the journal entries, and post to the T-accounts.

Begin by preparing the journal entries for the December transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Requirement 2. Post the transactions to the T-accounts. Use the transaction dates as posting references. If posting more than one entry on the same date to a single account, post to that account in the same order as you prepared the entries above. Use a "Bal." posting reference to show the ending balance of each account. For any accounts with a zero balance, select the "Bal." posting reference and enter a "0" on the normal side of the account.

Requirement 3. Prepare an unadjusted trial balance. (Exclude any accounts with a zero balance from the trial balance.)

Requirement 4. Prepare the adjusting entries and post to the T-accounts.

Begin by preparing the adjusting entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

d. Accrued Interest Expense, 130 dollars

Post the adjusting entries to the T-accounts. First, enter the unadjusted balances of the accounts ("Bal.") from requirement 2. For accounts with a zero unadjusted balance, do not make an unadjusted balance entry. Then use the adjustment and corresponding letters as posting

referenceslong dash"Adj.

(a)", "Adj. (b)", etc. Use a "Bal." posting reference on the last line of each T-account to show the adjusted balance of each account.

It continues like this as I shared in the requirement 2.

Requirement 5. Prepare an adjusted trial balance.

Rquirement 6. Complete the worksheet for the month ended December 31, 2016.

Requirement 7.

Prepare the income statement, the statement of owner's equity, and the unclassified balance sheet in account form.

Begin by preparing the income statement. (If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.)

Prepare the statement of owner's equity. Enter any increases in capital prior to the subtotal and any decreases to capital below the subtotal. (Enter a "0" for any zero balances. Use a minus sign or parentheses to show a decrease in capital.)

Prepare the classified balance sheet in report form as of December 31, 2016.

Begin by preparing the asset section of the balance sheet and then prepare the liabilities and owner's equity sections. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.)

Requirement 8.

Prepare the closing entries and post to the T-accounts.

Begin by preparing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Start by closing revenues. Then,

Post the closing entries to the T-accounts. First, enter "Bal." and the adjusted balance of each account from requirement 4. Then, use "Clos." and the corresponding number as shown in the journal entry as posting

referenceslong dash"Clos.(1)",

"Clos.(2)", etc. Post any closing entries to the accounts and then calculate the post-closing balance ("Bal.") of each account (including those that were not closed). For any accounts with a zero balance after closing, enter a "0" on the normal side of the account. For Income Summary, calculate and enter the balance ("Bal.") before posting the entry to close out the account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing (the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account.

Requirement 9.

Prepare a post-closing trial balance.

More Info Dec. 1 Walsh contributed $60,000 cash to the business in exchange for capital. 1 Purchased $13,200 of equipment paying cash. 1 Paid $6,500 for a ten-month insurance policy starting on December 9 Paid $20,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $1,500. 9 Borrowed $18,000 from the bank for business use. Walsh signed a note payable to the bank in the name of the business. The note is due in five years. 22 Paid $2,000 for advertising expenses. 26 Paid $900 on account. 28 The business received a bill for utilities to be paid in January, $330. 31 Revenues earned during the month included $17,000 cash and $3,800 on account. 31 Paid employees' salaries $4,000 and building rent $1,600. Record as a compound entry. 31 The business received $1,220 for auto screening services to be performed next month. 31 Walsh withdrew cash of $4,500. More Info a. Office Supplies used during the month, $1,400. b. Depreciation for the month, $220. c. One month insurance has expired. d. Accrued Interest Expense, $130. Print Done Cash Service Revenue HHH. Utilities Payable Salaries Expense Accounts Receivable Interest Payable Rent Expense Prepaid Insurance Notes Payable Advertising Expense Equipment Walsh, Capital Supplies Expense Accumulated Depr.-Equipment Walsh, Withdrawals Insurance Expense Land Interest Expense Depreciation Expense-Equipment Walsh's Quality Automotive Unadjusted Trial Balance December 31, 2016 Balance Debit Credit Account Title a. Office Supplies used during the month, $1,400. Date Accounts and Explanation Debit Credit Dec. 31 Adj. (a) b. Depreciation for the month, $220. Date Accounts and Explanation Debit Credit Dec. 31 Adj. (b) c. One month insurance has expired. (On December 1, the business paid $6,500 for a 10-month insurance policy starting on December 1.) Date Accounts and Explanation Debit Credit Cash Accounts Payable Service Revenue Utilities Payable Salaries Expense Accounts Receivable Interest Payable Rent Expense Walsh's Quality Automotive Worksheet (Partial) December 31, 2016 Income Balance Adjusted Trial Balance Statement Sheet Account Title Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Office Supplies Prepaid Insurance Equipment Accumulated Depr.Equip. Land Accounts Payable Utilities Payable Interest Payable Unearned Revenue Interest Payable Unearned Revenue Notes Payable Walsh, Capital Walsh, Withdrawals Service Revenue Salaries Expense Rent Expense Utilities Expense Advertising Expense Supplies Expense Insurance Expense Interest Expense Depr. Expense-Equip. Net income or loss