Requirement a. Journalize the transactions for the year.

Requirement b. Post the journal entries to t-accounts. Use the dates as posting references for the journal entries to post each entry to the relevant accounts, then compute the unadjusted balance of each account. Label the unadjusted balances with Unadj.. Bal. (For accounts with a $0 ending balance, select "Unadj. Bal." and enter "0" on the normal balance side of the t-account.) Review the journal entries prepared in Requirement a.

Requirement c. Prepare an unadjusted trial balance as of December 31. (Exclude any accounts with a zero balance from the trial balance.) Review the t-accounts prepared in Requirement b.

Requirement d. Journalize and post adjusting entries to t-accounts. Begin by preparing the adjusting journal entries (AJEs). (Record debits first, then credits. Exclude explanations from any journal entries.)

1. AJE i: Ten months of the insurance policy had expired by the end of the year.

2. AJE ii: Depreciation for the equipment is $225,000.

3. AJE iii. The company provided a portion of the services related to the advance collection of December 19. The company recognized $47,000

4. AJE iv. An additional $60,000 of interest had accrued on the note by the end of the year. as service revenue for services performed.

5. AJE v. Feng He Corporation accrued wages in the amount of $210,000.

Post the adjusting entries to t-accounts.

First, enter the unadjusted balances you determined in Requirement b. Label the unadjusted balances with Unadj. Bal and enter a "0" for any zero balances. Then post the adjusting journal entries to the t-accounts to obtain the adjusted balances. Use the adusting journal entry numbers (AJE i. through AJE v.) as posting references to post each adjusting entry to the relevant accounts, then compute the adjusted ending balance of each account. Label the adjusted balances with Adj. Bal. (For accounts with a $0 unadjusted or adjusted balance, select "Unadj. Bal." or "Adj. Bal." where appropriate and enter "0" on the normal balance side of the t-account.)

Review the t-accounts prepared in Requirement b.

Review the adjusting journal entries prepared above.

Requirement e. Prepare an adjusted trial balance as of December 31. (Exclude any accounts with a zero balance from the trial balance.) Review the t-accounts prepared in Requirement d.

Requirement f. Prepare a single-step income statement and statement of stockholders' equity for the current year and a classified balance sheet as of the end of the year. Begin by preparing Feng He Corporation's single-step income statement for the year ended December 31. (If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) Review the adjusted trial balance prepared in Requirement e.

Complete Feng He Corporation's statement of stockholders' equity for the year ended December 31. (Enter a "0" for any beginning or ending balances in the statement. If a box is not used in the statement, leave the box empty; do not enter a zero. Use a minus sign or parentheses to show a decrease in any of the accounts.)

Review the adjusted trial balance prepared in Requirement e.

Complete Feng He Corporation's statement of stockholders' equity for the year ended December 31. (Enter a "0" for any beginning or ending balances in the statement. If a box is not used in the statement, leave the box empty; do not enter a zero. Use a minus sign or parentheses to show a decrease in any of the accounts.) Review the adjusted trial balance prepared in Requirement e.

Complete Feng He Corporation's classified balance sheet as of the end of the year. (Use a minus sign or parentheses to show a decrease in any of the accounts.)

Requirement g. Journalize and post closing entries. Next, enter the adjusted balances from the adjusted trial balance prepared in Requirement e. Label the adjusted balances with Adj. Bal and enter a "0" for any zero balances. Then post the closing journal entries to the t-accounts to obtain the post-closing balances. Use the closing entry numbers (CJE1 through CJE4) as posting references to post each closing entry to the relevant accounts and compute the ending balance of each account. Label the ending balances with End. Bal.

Review the adjusted trial balance prepared in Requirement e.

Review the closing journal entries prepared above.

Requirement h. Prepare a post-closing trial balance as of December 31. (Exclude any accounts with a zero balance from the trial balance.)

Review the t-accounts prepared in Requirement g.

Issued 700,000 shares of common stock for $9,800,000, which is the par value of the stock. January 10: Acquired equipment in exchange for $1,500,000 cash and a $3,000,000 note payable. The note is due in 10 years. February 10: Paid $31,200 for a business insurance policy covering the two-year period beginning on March 1. February 14: Purchased $950,000 of supplies on account. March 1: Paid wages of $199,000. March 15 Billed $2,590,000 for services rendered on account. April 3: Paid $130,000 of the amount due on the supplies purchased on February 14. April 17: Billed $1,800,000 for services rendered on account. May 1: Paid wages of $160,000. May 7 Collected $230,500 of the outstanding accounts receivable. May 8: Received bill and paid $98,700 for utilities May 24 Paid $37,000 for sales commissions. June 4: Made the first payment on the note issued on January 10. The payment consisted of $18,000 of interest and $120,000 to be applied against the principal of the note. June 18 Billed customers for $669,000 of services rendered June 29 Collected $500,000 on accounts receivable. July 10: Purchased $42,000 of supplies in cash. Aug 25 Paid $160,000 for administrative expenses. Sept 23: Paid $34,500 for warehouse repairs. October 1: Paid wages of $60,000. Nov 23: Purchased supplies for $550,000 on account Dec 19 Collected $155,000 in advance for services to be provided in December and January of the following year. Dec 30 Declared and paid a $30,000 dividend to shareholders