STEPS: 1. Enter your name, student ID and company name in the Start tab. 2. Link all beginning balances in the Beg TB to the proper T-Account in the Ledger. Ensure the beginning balance in each T-Account is in the first row on its "normal" side. Check the Adj TB to ensure it balances. *Note: From this point forward your adjusted trial balance should be in balance after each transaction. 3. Using each transaction from the Trx tab, enter your journal entries into the JEs tab, ensuring your debits and credits balance after each transaction. 4. After each of eight Trx in #3 above, link your entry to the appropriate T-Account in the Ledger (use the correct side as you post transactions (Dr = left, Cr = right). Only use positive numbers in T-Accounts. 5. Next, enter each adjusting entry as a JE, and then post to the proper 'Adjustments' cell in the T-Account. This will mimic steps 3 and 4, this time for your adjusting entries. 6. Ensure the journal entries balance (cell C5 in JES) and your Adj TB balances. 7. Prepare the Income Statement: Select the correct accounts from the drop down in Column A, and then link the amount in Column B to the appropriate amount in the adjusted trial balance. Add Totals in Column Con the Income Statement (e.g. Gross Profit, Net Income, etc) by using Excel formulas. 8. Prepare the Balance Sheet: Select the correct accounts from the drop downs in Column A and then link the amount in Column B to the appropriate amount in the adjusted trial balance. Add Totals, as needed. *Note: The Adj TB shows beginning Retained earnings. The ending Retained earnings shown on the balance sheet must reflect any revenue, expense and dividend transactions that occured during the year. **You must use an "If/Then" formula to ensure the balance sheet is in balance. Assets = Liab. + Equity 9. Finally, prepare closing entries by closing revenue, expense and dividend accounts to retained earnings. Enter the closing entries in the JEtab, and then Post to the special 'Closing Entry' cells in the Ledger. Ref #1 #2 #3 Optic inc.'s transactions during 2021: On Jan 1, Optic inc. pays cash of $1,725 towards their Accounts Payable. On Jan 15, Optic inc. purchases $5,250 in supplies, on account. On Feb 15, the company purchases 149 units of inventory for $1,150 each, half with accounts payable and the rest with cash. Note: Optic inc. had 1 unit of inventory on hand at the beginning of the year. On Apr 15, Optic inc. sells all but 5 units of inventory at a price of $2,790 each. Half are sold on account, the rest for cash. On Apr 30, you record the 4 month's of rent used - this amount is shown in your prepaid rent beginning balance. On May 1, you pre-pay 12 months of rent. Your rent has increased $800 per month over your initial monthly payment of $5,580. On Dec 1, you collect $141,593 from customers related to previous sales. On Dec 31, you declare and pay dividends equal to 40% of the outstanding common stock value. #4 #5 #6 #7 #8 Optic inc.'s adjusting entries at December 31, 2021: #A1 A count of supplies shows you have $2,790 supplies on hand at the end of the year. #A2 Perform an adjusting entry to account for any additional rent from May until year end. #A3 Record depreciation on equipment, based on the original value. The expected life is 10 years, with no salvage value. #A4 Record tax expense of $13,957, to be paid next April. *** Based on the above transactions, complete your Income Statement and Balance Sheet. #C1 #C2 #C3 Once the financial statements are prepared, perform closing entries. Close all revenue accounts to retained earnings. Close all expense accounts to retained earnings. Close all dividend accounts to retained earnings. Beginning Trial Balance for Optic inc. as of January 1, 2021 Debit Balance Credit Balance Notes Cash $ 89,125 Accounts receivable $ 30,400 Supplies $ 3,350 Prepaid rent $ 22,320 * 4 months rent at a monthly rate of: $ 5,580 Inventory $ 1,150 * One inventory item is on hand at Jan 1 Equipment $ 202,500 * All equipment was purchased July 1, 2020 (Last Year) Accumulated depreciation $ 10,125 & Depreciation is straight-line over 10 years Accounts payable $ 3,450 Taxes payable $ Common stock $ 212,000 Retained earnings $ 123,270 Dividends $ Sales revenue Cost of goods sold Supplies expense Rent expense Depreciation expense Totals 348,845$ 348,845 Balanced 309,848 Debit XX,XXX 309,848 Credit XX,XXX 1,725 1,725 5,250 5,250 1,150 575 575 Trx # Trx Date Account #0 1/31 Dr Account (EXAMPLE) Cr Account (EXAMPLE) 1 1/1 Accounts payable Cash 2 1/15 Supplies Accounts payable 3 2/15 Inventory Accounts payable Cash 4 4/15 cash Accounts receivable Inventory 5 4/30 Prepaid rent Rent expense 6 5/1 prepaid rent rent expense 7 12/1 cash Accounts receivable 12/31 Common stock Dividends 1,395 1,395 2,790 5,580 5,580 66,960 66,960 141,593 141,593 00 84,800 84,800 ASSETS TexReferences Tex References