Scenario:

Your group has been approached for assistance by Paul Zoukis the owner of Zoukis Forklift Services Ltd because the company has no accounting personnel to prepare its accounting records and financial statements. The company$$s financial year end is December $31$ each year and you have been provided the following information and transactions for $2023$:

Jan $1.$ Balances from $2022$ Cash $$500,000$; Accounts Receivable $$150,000$; Supplies $$105,000$; Machinery and Equipment $$700,000$; Other Creditors $$300,000$; and Capital $$1,155,000.$

Jan $2.$ The following assets were received from Paul Zoukis in exchange for capital in the company: cash $-$ $$300,000,$ accounts receivable $-$ $$150,000,$ supplies $-$ $$105,000,$ and Machinery and Equipment$-$ $$350,000.$

Feb $1.$ Paid fourteen $(14)$ months$$ rent on a lease rental contract at $$35,000$ per month.

Mar $30.$ Paid the premiums on the property and peril insurance policies for fifteen $(15)$ months amounting to $$150,000.$

April $4.$ Received cash from clients as an advance payment for services to be provided in the coming months, $$440,000.$

May $5.$ Purchased forklift on account from Fatman Machinery and Equipment for $$400,000.$

June $6.$ Received cash from clients on account, $$200,000.$

June $10.$ Paid cash for security services amounting to $$54,000.$

Aug $12.$ Paid Fatman Machinery and Equipment $$150,000$ of the debt incurred on May $5.$

Sept $12.$ Recorded services provided on account for the period July $1$ Sept $12,$ $$560,000.$

Sept $30.$ Paid part$-$time workers salary, $$226,000.$

Oct $17.$ Recorded cash from cash clients for fees earned during the first half of year, $$501,250.$

Oct $30.$ Paid cash for supplies, $$95,000.$

Oct $30.$ Recorded services provided on account for the period June to July, $$208,000.$

Nov $24.$ Recorded cash from cash clients for fees earned for the period September $13-$ Nov $24,$ $$485,000.$

Nov $25.$ Received cash from clients on account, $$350,000.$

Nov $27.$ Paid part$-$time workers for salary $$226,000.$

Dec $29.$ Paid telephone bill for the year $2022$ $$290,000.$

Dec $30.$ Paid electricity bill for the year $2022$ $$285,000.$

Dec $30.$ Recorded cash from cash clients for fees earned for the period September $14-$ Dec $30,$ $$350,000.$

Dec $30.$ Recorded services provided on account for October to December $2022,$ $$280,000.$

Requirement:

$1.$ Prepare the opening journal entries and journalize each transaction in the general journal referring to the following chart of accounts in selecting the accounts to be debited and credited and include a narration for each transaction:

Account # Account Name

$11$ Cash

$12$ Accounts Receivables

$14$ Supplies

$15$ Prepaid Rent

$16$ Prepaid Insurance

$18$ Machinery and Equipment

$21$ Other Creditors

$22$ Salaries Payable

$23$ Unearned Fees

$31$ Capital Stock

$41$ Fees Earned

$51$ Salary Expense

$52$ Rent Expense

$53$ Supplies Expense

$54$ Insurance Expense

$55$ Utilities Expense

$56$ Security Expense

$57$ Income Summary

$2.$ Post the journal entries to their respective ledger accounts.

$3.$ Prepare a trial balance based on the balances derived after completing requirement #$2.$

$4.$ The company presented the following adjustments and required you to preparing the adjusting entries in the general journal $($Narration required for each journal entry$)$:

i$.$ Insurance expired during $2023,$ $$120,000.$

ii$.$ Supplies on hand on December $31,2023,$ $$5,000.$

iii. Unpaid salary on December $31,2023,$ $$526,000$

iv$.$ Rent not expired on December $31,2023,$ $$70,000$

v$.$ Unearned fees on December $31,2023,$ $$400,000.$

$5.$ Post the adjusting entries to their respective ledger accounts already started in requirement # $2.$

$6.$ Prepare the adjusted trial balance.

$7.$ Prepare all three $2023$ financial statements for presentation to Mr$.$ Zoukis

$8.$ Journalize the closing entries and balance off the ledger accounts including the income summary account.

$9.$ Prepare the post$-$closing trial balance.