These financial statements were prepared from the unadjusted trial balance.

Cole Designs Inc.

Income Statement

For the Year Ended December 31, 2017

1	Fees earned	$69,000.00
2	Wages expense	44,600.00
3	Net income	$24,400.00

Cole Designs Inc.

Balance Sheet

December 31, 2017

1	Assets
2	Cash		$5,250.00
3	Accounts receivable		31,200.00
4	Supplies		3,550.00
5	Prepaid insurance		4,000.00
6	Office equipment		11,000.00
7	Total assets		$55,000.00
8	Liabilities
9	Unearned fees		$9,200.00
10	Stockholders Equity
11	Common stock	$12,000.00
12	Retained earnings	33,800.00	45,800.00
13	Total liabilities and stockholders equity		$55,000.00

Adjusted Financial Statements

These financial statements were prepared from the adjusted trial balance.

Cole Designs Inc.

Income Statement

For the Year Ended December 31, 2017

1	Fees earned		$74,900.00
2	Expenses:
3	Wages expense	$47,200.00
4	Supplies expense	3,420.00
5	Insurance expense	2,500.00
6	Depreciation expense	1,900.00
7	Total expenses		55,020.00
8	Net income		$19,880.00

Cole Designs Inc.

Balance Sheet

December 31, 2017

1	Assets
2	Cash		$5,250.00
3	Accounts receivable		32,000.00
4	Supplies		130.00
5	Prepaid insurance		1,500.00
6	Office equipment	$11,000.00
7	Accumulated depreciation-office equipment	(1,900.00)	9,100.00
8	Total assets		$47,980.00
9	Liabilities
10	Wages payable		$2,600.00
11	Unearned fees		4,100.00
12	Total liabilities		$6,700.00
13	Stockholders Equity
14	Common stock	$12,000.00
15	Retained earnings	29,280.00	41,280.00
16	Total liabilities and stockholders equity		$47,980.00

Chart of Accounts

CHART OF ACCOUNTS

Cole Designs Inc.

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
14	Supplies
15	Prepaid Insurance
17	Land
18	Office Equipment
19	Accumulated Depreciation-Office Equipment

	LIABILITIES
21	Accounts Payable
22	Wages Payable
23	Unearned Rent
24	Unearned Fees

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Wages Expense
52	Supplies Expense
53	Rent Expense
54	Utilities Expense
55	Insurance Expense
56	Depreciation Expense
59	Miscellaneous Expense

Journalize the six December 31 adjusting entries for Cole Designs Inc. that adjusted the accounts to arrive at the financial statements in the Adjusted Financial Statements panel. Refer to the Chart of Accounts for exact wording of account titles. Record each adjustment as a separate entry.

PAGE 25

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Adjusting Entries
2
3
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8
9
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