Requirements: 1. Journalize the December transactions for Parker Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry see the journal entries for October November as a formatting example. 2. Continue with the ending November balances that are already in the ledger. Post the December transactions to the appropriate accounts in the modified ledger and update balances. 3. Prepare a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $100,616. Consult your instructor if your trial balance does not balance before proceeding with the project. 4. Journalize the adjusting entries to reflect items a through f above. 5. Post the adjusting entries to the appropriate accounts in the ledger. 6. Prepare an adjusted trial balance as of December 31, 2020. Check figure: $102,766. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project. 7. Prepare the three basic financial statements in good form. See pages 120-121 of your accounting text for a good example of financial statement formatting. a. Prepare an income statement for the three months ended December 31, 2020. b. Prepare a statement of owner's equity for the three months ended December 31, 2020. c. Prepare a balance sheet as of December 31, 2020. 8. Journalize and post the necessary closing entries for Parker Consulting. 9. Prepare a post-closing trial balance as of December 31, 2020. Sam Parker owns and operates a consulting firm called Parker Consulting. The business began operating in October 2020. Transactions for October and November 2020 have been recorded and posted. Parker Consulting had the following transactions in December 2020. Dec 2 Provided $3,950 consulting services to Gomez Company on account. 3 Paid $1,025 cash to Hillside Mall for Parker Consultings share of mall advertising costs. 4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products. 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co. that Parker Consultings' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Parker Consulting. 20 Completed a project for Lyn Corporation and received $6,425 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Parker $193 for business automobile mileage. 31 S. Parker withdrew $2,100 cash from the company for personal use. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations: a. The December 31 inventory count of computer supplies shows $320 still available. b. Three of the four months' prepaid rent has expired. c. Three months have expired since the 12-month insurance premium was paid in advance. d. As of December 31, the only employee of Parker Consulting had not been paid for four days of work at $125 per day. e. The computer system, acquired for $8,000 on October 1, is expected to have a five-year life with no salvage value. f. The office equipment, acquired for $20,000 on October 1, is expected to have a four year life with no salvage value.

GENERAL JOURNAL PAGE 1 DATE ACCOUNT POST REF DEBIT CREDIT 2020 Oct 1 Cash Office Equipment Computer Equipment S. Parker, Capital 101 163 167 301 Jon 45,000 20,000 8,000 73,000 1 128 2,220 Prepaid Insurance Cash 101 2,220 2 Prepaid Rent Cash 131 101 3,300 3,300 9 2,545 Computer Supplies Accounts Payable 126 201 2,545 16 Accounts Receivable Computer Services Revenue 106 403 4,800 4,800 875 31 Wages Expense Cash 623 101 875 Nov 320 2 Mileage Expense Cash 676 101 320 5 Accounts Payable Cash 201 101 2,545 2,545 8 4,800 Cash Accounts Receivable 101 106 4,800 4,633 14 Cash Computer Services Revenue 101 403 4,633 106 5,208 23 Accounts Receivable Computer Services Revenue 5,208 302 2,000 30 S. Parker, Withdrawals Cash 101 2,000 Note: Ledger includes all entries from the first two months of operations for Parker Consulting. Continue by posting the December transactions. Balance Date Date Oct. 1 Oct. 1 101: Cash Debit Credit 45,000 2,220 3,300 875 320 Oct. 16 Nov. 8 Nov. 23 106: Accounts Receivable Debit Credit Balance 4,800 4,800 4,800 0 5,208 5,208 Oct. 2 Oct. 31 Nov. 2 Nov. 5 Nov. 8 Nov. 14 Nov. 30 45,000 42,780 39,480 38,605 38,285 35,740 40,540 45,173 43,173 2,545 4,800 4,633 2,000 Date 126: Computer Supplies Debit Credit Balance 2,545 2,545 Date 128: Prepaid Insurance Debit Credit 2,220 Balance 2,220 Oct. 9 Oct. 1 131: Prepaid Rent Debit Credit Date Date Balance 3,300 163: Office Equipment Debit Credit 20,000 Balance 20,000 Oct. 2 3,300 Oct. 1 164: Accum Dep Office Equipment Date Debit Credit Balance Date 167: Computer Equipment Debit Credit Balance 8,000 8,000 Oct. 1 168: Accum Dep Computer Equipment Date Debit Credit Balance Date 201: Accounts Payable Debit Credit 2,545 2,545 Balance 2,545 Oct. 9 Nov. 5 0 210: Wages Payable Debit Credit 236: Unearned Consulting Revenue Date Debit Credit Balance Date Balance Date Oct. 1 301: S. Parker, Capital Debit Credit 73,000 Balance 73,000 302: S. Parker, Withdrawals Date Debit Credit Balance Nov. 30 2,000 2,000 612: Dep. Expense - Office Equipment Date Debit Credit Balance Date Oct. 16 Nov. 14 403: Consulting Revenue Debit Credit Balance 4,800 4,800 4,633 9,433 5,208 14,641 Nov. 23 613: Dep. Expense-Computer Equipment Date Debit Credit Balance Date Oct. 31 623: Wages Expense Debit Credit 875 Balance 875 637: Insurance Expenses Debit Credit Balance 640: Rent Expense Debit Credit Date Date Balance 652: Computer Supplies Expense Date Debit Credit Balance 655: Advertising Expense Debit Credit Balance Date 676: Mileage Expenses Debit Credit 320 684: Repairs Expense-Computer Date Debit Credit Balance Date Nov. 2 Balance 320 901: Income Summary Debit Credit Date Balance