The Accounting Cycle - Problem Set ABC Company Ltd. Balance Sheet as at Nov. 30, 2023 Assets Land Equities 3 600 Paid-in Capital 7 100 Equipment 2 500 Retained Earnings 2 500 Office Supplies Inventory 2 500 Tax payable 1 300 Accounts Receivable 5 000 Loan Payable 3 000 Cash, Bank 3 800 Accounts payable 3 500 Total assets 17 400 Total equities 17 400 Summary of transactions during December: 1. Paid outstanding tax payables. 2. Paid outstanding trade creditors in the amount of 1500. 3. Received a bank transfer for 3000 from a customer for services rendered in October. 4. Purchase of 850 of Equipment on credit. 5. Performed advertisement services for Customer XYZ, for which we will receive 700 in 14 days. 6. Performed consulting services for the amount of 850, cash was immediately received. 7. Paid rent for office in the amount of 500 in cash. 8. Purchase of office supplies for 700 paid in cash. 9. We performed additional consulting work, 2000 on credit. 10. Paid salaries to employees of 1000. 11. At the end of the month Company repaid to the Bank credit tranche 1000 and paid interest charges (interest rate as of 7% p.a.) 12. The cost of office supplies inventory used during December is 500. 13. Depreciation of equipment for December amounts to 250. Required: a) Prepare the opening journal entry on Dec. 1, 2023. b) Prepare the journal entries for the transactions (1-13) for the month of December and post them to the T-accounts, opening additional T-accounts for accounts as needed. c) Prepare the closing entries for the temporary accounts and the Income Statement. d) Prepare the Balance Sheet as at Dec. 31, 2023. No closing entries are required for permanent accounts.