Rose Pico began her retail business, Pico Inc., on October 1, 2016. A post-closing trial balance was prepared on November 30, 2016 and those balances are posted in the ledgers at December 1. Pico Inc. uses a perpetual inventory system. During December, Pico Inc. entered into the following transactions: Dec. 2 Purchased merchandise on account from Ohio Wholesale, $4,000 terms FOB shipping, 2/10, n/30, with prepaid freight of $125 added to the invoice. 4 Received cash from Third Street on account, $1,960. 8 Returned $180 (net of discount) of merchandise purchased on Dec. 2. 11 Issue Check #5471 to Ohio Wholesale on account for full amount of Dec. 2 purchase. 12 Issued Check #5472 to Decker Office Products as partial payment toward current balance, $512. 13 Issued Invoice #3462 to Kitchen World for merchandise sold on account, $8,300, n/30. The cost of merchandise sold was $2,490. 15 Issued Check #5473 to the receptionist for bi-monthly salary, $600. 16 Issued Invoice #3463 to My Garage, terms 2/10, n/30, for merchandise sold on account, $6,800. The cost of the merchandise sold was $2,040. 18 Purchased supplies from Decker Office Products on account, $580, Invoice #2915, terms n/30. 19 Issued Invoice #3464 to Liz's House for merchandise sold on account, list price $6,000, trade discount 30%. Cost: $1,500 21 Purchased merchandise on account from EDH Distribution, $6,000 terms FOB destination, 2/10, n/30. 22 Issued Invoice #3465 to Arnie's Wholesale Club, for merchandise sold on account, $6,700 terms 2/10, n/30. The cost of merchandise sold was $1,970 26 Received cash from My Garage on account, for full amount owed. 27 Received cash from Liz's House on account, $2,500. 29 Issued Check #5474 in payment of window cleaning, $65. 30 Issued Check #5475 to the receptionist for bi-monthly salary, $600. 31 Issued Invoice #3466 to Geideman's, for merchandise sold on account $4,800. The cost of the merchandise sold was $1,450. 31 Issued Check #5476 to Rose Pico as a personal withdrawal, $8,500. Note: You may find it useful to copy and paste the following instructions to a file and print them. Also, in this problem, you will see [More] in many locations. Click on those links for helpful hints and additional instructions. In the special journals and all ledgers, dates must be entered in Mon DD format. (December 9 would be entered as Dec. 9) Required: 1. Journalize each of the December transactions using the following journals. (Posting references will be inserted in requirement 2.) [More] A. Journal (pg. 11) B. Revenue journal (pg. 8) [More] C. Cash receipts journal (pg. 11) D. Purchases journal (pg. 9) [More] E. Cash payments journal (pg. 12) 2. Post the journal entries to the appropriate ledgers. [More] Posting should be completed in the following order: A. Post the entries on journal page 11 to the general ledger. [More] B. Post the individual revenue journal entries to the accounts receivable subsidiary ledger. [More] C. Post the individual cash receipts journal entries to the accounts receivable subsidiary ledger. [More] D. Post the individual purchases journal entries to the accounts payable subsidiary ledger. [More] E. Post the individual cash payments journal entries to the accounts payable subsidiary ledger and the appropriate general ledger accounts. [More] 3. Total each of the columns of the special journals. Verify that total debits equal total credits in each journal. 4. Post the totals of the special journals to the appropriate general ledger accounts. [More] Special journals must be posted in the following order: I. Revenue journal II. Cash receipts journal III. Purchases journal IV. Cash payments journal 5. Prepare an unadjusted trial balance. [More] 6. At the end of December, the following adjustment data were assembled. Analyze and use these data to complete parts (7) and (8). Insurance expired during December is $200. Office supplies on hand on December 31 are $615. Depreciation of office equipment for December is $300. Rent expired during December is $1,280. A physical inventory indicates that $10,955 is actually on hand. 7. On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet. (Follow the example in chapter 4 of your text.) [More] 8. A. Journalize the adjusting entries on page 12 of the journal. [More] B. Post the adjusting entries to the general ledger. 9. Prepare an adjusted trial balance. [More] 10. Prepare (A) an income statement, (B) a statement of owners equity, and (C) a balance sheet. [More] 11. A. Prepare the closing entries on page 13 of the journal. [More] B. Post the closing entries to the ledger. [More] 12. Prepare a post-closing trial balance. [More] CHART OF ACCOUNTS Pico Inc. General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Merchandise Inventory 14 Office Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated Depreciation LIABILITIES 21 Accounts Payable 22 Unearned Revenue EQUITY 31 Rose Pico, Capital 32 Rose Pico, Drawing 34 Income Summary REVENUE 41 Sales EXPENSES 51 Cost of Merchandise Sold 52 Salary Expense 53 Rent Expense 54 Office Supplies Expense 55 Depreciation Expense 56 Insurance Expense 59 Miscellaneous Expense 1.A. Journalize the appropriate December transactions on journal page 11. (Posting references will be inserted in requirement 2.) [More] 2.A. Post the journal entries on page 11 to the general ledger. [More] (Scroll down for pages 12 and 13 of the journal to complete requirements 8 and 11.) All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. P