SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters 1 and 2.) SP3. Getting ready for the upcoming holiday season is traditionally a busy time for greeting card.com panies, and it was no exception for Kate. The following transactions occurred during the month October: n 1. Hired an assistant at an hourly rate of $10 per hour to help with some of the computer layouts and administrative chores. 2. Supplements her business by teaching a class to aspiring card designers. She charges and receives a total of $450. 3. Delivers greeting cards to several new customers. She bills them a total of $3,500. 4. Pays a utility bill in the amount of $250 that she determines is the business portion of her utility bill. 5. Receives an advance deposit of $500 for a new set of cards she is designing for a new customer. 6. Pays her assistant $200 for the work done this month. 7. Determines that the assistant has worked 10 additional hours this month that have not yet been paid. 8. Ordered and receives additional subpics in the amount of $1,000. These were paid for during the month. 9. Counts her remaining inventory of supplies at the end of the month and determines the balance to be $300. Don't forget to consider the supplies inveniory balance at September 30, from Chapter 2. (Hint: This expense will be a debit to Cost of Goods Sold.) 10. Records the adjusting entries for depreciation and insurance expense for the month. 11. Pays herself a salary of $1,000. 12. Paid monthly rent of $1,200 in cash. 13. Receives her next utility bill during December and determines $85 applies to October's operations. 14. Deciding she needs a little more cash, Kate pays herself a $100 dividend, Required Using the information that you gathered and the general ledger accounts that you prepared through Chapter 2, plus the new information above, complete the following: a. Journalize the above transactions and adjusting entries. b Post the October transactions and adjusting entries. (Use the general ledger accounts prepared in Chapter 2 and add any new accounts that you may need.) C. Prepare a trial balance as of October 31, 2018 d. Prepare an income statement and a statement of stockholders' equity for the two-month period ending October 31, 2018, and a balance sheet as of October 31, 2018. e. Prepare the closing entries as of October 31, 2018. f. Prepare a post-closing trial balance. 13100 114 1,000 29 No entry required 30 31 Supplies Inventory 1,500 32 Accounts Payable ... To record purchase of office supplies on account 1500 Kate's Cards Trial Balance September 30, 2019 5.000 Cash 36 Sales Revenue 5,000 Credit To record the sale of greeting cards Debit 4,900 Cash 100 1.100 39 Cost of goods sold 40 Supplies Inventory 1.250 4,800 Cost of goods sold 100 10,000 1,850 Supplies Inventory Prepaid Insurance Equipment Accumulated Depreciation Common Stock Sales Revenue Cost of Goods sold Consulting Expense Insurance Expense Depreciation Expense Wages Expense 43 Accounts Payable 44 Cash H 5,000 1.750 Paid Accounts Payable in Full 100 100 47 Prepaid Insurance 48 Insurance Expense 49 Cash 1,100 100 000 Purchases 1 year insurance policy Rent Expense 1.200 100 54 Depreciation Expense SS Accumulated Depreciation Equipment Monthly depreciation expense for equipment Totals 15.100 58 Wages Expense sa sch . Ch 2 Ch 3 Ready 1,000 Ch 13 Ch 12 Ch 5 Ch 6 Ch 7 Ch 8 Ch 9 Ch 11 4 Serial Problem Ch. 2 T-accounts va General Journal co Description Credit Prepaid Insurance Debit 10,000 5013 PR Supplies Inventory PR SL3501,750) 1012 1500 2200 To record issuance of common stock for cash 13 No entry necessary 1.200 15 Accumulated Depreciation - Equipment Equipment 4,800 15 Consulting Expense 16 Cash 50 17 Paid cash for brochure critiquing Accounts payable Common stock 1.200 10,000 1 19 Equipment 20 Cash 3505 1.5008 computer purchase Consulting expense Cost of goods sald Insurance expense 250 23 Supplies Inventory 24 Accounts payable 350 1.750 To record purchase of office supplies on account Depreciation expense 27 No entry required Wages expense 100 29 No entry required 1.500 31 Supplies Inventory 32 Accounts Payable 1500 Kate's Cards Trial Balans 23 14 4) + C 2 H 3 To record purchase of fire is an account 05 Ch 6 07 Th 6 thg 11 ( 13 th 100% 0