The following transactions occurred during the month of December 2016:

Dec. 2 Paid insurance premiums of $8,100 in advance.

5 Purchased $130 of office supplies on credit.

6 Paid $900 for an advertising campaign.

7 Deposited $8,700 of moving fees earned during the week.

10 Purchased $1,560 of moving supplies on credit.

13 Acquired truck worth $56,000 by paying $6,000 cash and

signing a long term note payable for the balance.

15 Paid wages of $2,700 for the period December 1 15.

17 Received $180 as advance payment on storage rental.

21 Deposited $4,700 of moving fees and $1,600 of storage fees.

24 Paid $860 for truck repairs that were incurred during the week.

26 Paid the $6,600 of the dividend declared in 2015.

28 Deposited $6,260 of moving fees and $800 of storage fees.

30 Paid accounts payable of $720.

31 Paid wages of $2,850 for the period December 16 31.

Adjustments:

a. Interest expense on the note payable was $24,700.

b. Office supplies inventory was $180 on December 31.

c. Moving supplies inventory was $4,530 on December 31.

d. Unexpired insurance was $9,475 as of December 31.

e. Annual depreciation on the trucks was $50,350.

f. Annual depreciation on the building was $7,400.

g. Storage fees still owed as of December 31 were $650.

h. Unpaid wages of $610 as of December 31 need to be recorded.

i. Declared a $10,000 dividend to be paid in 2017.

Required:

1. Prepare and post the December transactions.

2. Prepare a 10-column worksheet and enter the December 31,

unadjusted balances from the accounts. Make sure you foot (add)

each pair of columns.

3. Use the worksheet to determine the year-end adjustment amounts.

4. Complete the worksheet columns.

5. Prepare the financial statements for December 31, 2016.

6. Journal and post the adjusting entries.

7. Journal and post the closing entries.

8. Prepare the post closing trial balance for December 31, 2016.

Following is the November 30, 2016, Unadjusted Trial Balance of Paramount Moving and Storage. George Bliss owns 100% of the common stock. The temporary account balances represent the results recorded during the first 11 months of 2016; the balance in Common Stock has not changed since December 31, 2015. PARAMOUNT MOVING AND STORAGE Unadjusted Trial Balance November 30, 2016 DebitCredit $78,110 450 8,700 7,475 350,000 101 124 126 128 153 154 173 174 201 203 205 210 Cash Office Supplies Moving Supplies Prepaid Insurance Trucks A/D Trucks Building A/D - Building Accounts Payable Interest Payable Dividends Payable Wages Payable Unearned Storage Revenue 233 Long Term Note Payable Common Stock Retained Earnings Moving Revenue Storage Revenue Deprec. Expense - Trucks Deprec. Expense -Building 511 Wages Expense Interest Expense Insurance Expense Office Supplies Expense Moving Supplies Expense Advertising Expense Repairs & Maintenance Expense 569 General & Admin. Expense 572 Income Summary Total 200,000 185,000 29,120 2,350 6,600 251 301 302 401 402 506 1,700 245,000 30,000 4,605 179,600 26,750 523 533 537 550 552 41,700 5,900 31,510 16,880 901 725,725 725,725 Check Figures for Worksheets: Unadjusted TB 792,335 Adjusted TB 880,790 Adjustments 106,520 Net Income 31,050