Step 1:

Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate:

Cash

Land

Notes Payable

Depreciation Expense

Accounts Receivable

Accumulated Depreciation

Common Stock

Salaries Expense

Supplies

Accounts Payable

Retained Earnings

Supplies Expense

Prepaid Insurance

Deferred Revenue

Dividends

Rent Expense

Equipment

Salaries Payable

Service Revenue

Insurance Expense

Dec 1:

Issued common stock for $10,500 cash.

Dec 1:

Paid $720 in advance for a one-year insurance policy.

Dec 1:

Purchased equipment for $4,200 cash.

Dec 5:

Purchased supplies for $500 on account from XYZ Company.

Dec 15:

Provided services to customers for $7,400cash.

Dec 16:

Provided services to customer ABC Inc. on account for $5,500.

Dec 17:

Received cash of $1,800 in advance from customers for services to be provided in January.

Dec 22:

Paid $230 to XYZ company for the Dec 5 purchase on account.

Dec 23:

Received $2,500 cash from customer ABC Inc., on account related to the Dec 16 transaction.

Dec 25:

Paid $1,050 rent for the current month.

Dec 28:

Paid salaries to employees $4,760 for work performed from Dec 1 to Dec 28.

Dec 29:

Declared and paid cash dividends of $750 to stockholders.

Dec 30:

Purchased land by signing a long-term note for $6,000.

Step 2:

Post all of the transactions from the "General Journal" tab to the T-accounts under the "T-Accounts/General Ledger" tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts.

Step 3:

Compute the unadjusted balance for each T-account after all of the December entries have been posted.

Step 4:

Prepare the unadjusted trial balance on the "Unadjusted Trial Balance" tab.

1 - Provide the total of the credit column from the Unadjusted Trial Balance

Step 5:

Record the December adjusting entries on the "General Journal" tab.

Dec 31: One month insurance has been used.

Dec 31: Supplies remaining at the end of the month total $90.

Dec 31: The estimated depreciation on equipment is $70.

Dec 31: Salaries incurred from December 29 to December 31 but not yet paid or recorded total $510.

Step 6:

Post all of the adjusting entries to the T-accounts under the "T-Accounts/General Ledger" tab. Compute the adjusted balance for each T-account after all of the adjusting entries have been posted.

Step 7:

Prepare the adjusted trial balance under the "Adjusted Trial Balance" tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx".

Check point 1: Adjusted trial balance total debit/credit = $32,050

Provide the following amounts from the Adjusted Trial Balance: (Be sure to enter all numbers as positive and no answers should be left blank.)

2 - Cash

3 - Accounts Receivable

4 - Supplies

5 - Prepaid Insurance

6 - Equipment

7 - Land

8 - Accumulated Depreciation

9 - Accounts Payable

10 - Deferred Revenue

11 - Salaries Payable

12 - Notes Payable

13 - Common Stock

14 - Retained Earnings

Step 8:

Prepare Income Statement, Statement of Stockholder's Equity, and Classified Balance Sheet under the "Financial Statements" tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx".

Check Point 2: Total Assets $24,370

Provide the following amount from the Income Statement:

15 - Service Revenue

16 - Depreciation Expense

17 - Salaries Expense

18 - Supplies Expense

19 - Rent Expense

20 - Insurance Expense

21 - Net Income

Provide the following account balances from the Classified Balance Sheet:

22 - Total Current Assets

23 Total Long-Term Assets

24 - Total Current Liabilities

25 - Total Long-Term Liabilities

26 - Total Liabilities

27 - Total Stockholder's Equity

Provide the following account balance from the Statement of Stockholders' Equity:

28 - Dividends

Step 9:

Record the closing entries under the "General Journal" tab.

Step 10:

Post all of the closing entries to the T-accounts under the "T-Accounts/General Ledger" tab. Compute the post closing balance for each T-account after all of the closing entries have been posted.

Step 11:

Prepare the post-closing trial balance for the month ended December 31, 20XX on the Post-Closing Trial Balance tab.

29 - Provide the total of the debit column from the Post Closing Trial Balance.

30 - Provide the balance of the Retained Earnings T-account after closing entries have been posted.