This included, the Accounting Cycle, preparing a work sheet and closing entries. The PDF has the Success System problem, an example of a work sheet and a diagram of how the closing entries flow. A couple of comments: The 30 November Balance sheet becomes your beginning balance sheet 1 December. Entries 1- 12 are cash transactions for December and the additional information are your adjusting entries for the month. Once you have posted entries 1- 12 you'll have the unadjusted trial balance for 31 December. From here prepare your worksheet, financials and close the temporary accounts and prepare a post-closing trial balance (hint: should be the same as the 31 December balance sheet) Required 1. Post the transactions below to the general ledger accounts 2. Prepare an income statement for three months ended 12/31/2016 3. Prepare a balance sheet as of 12/31/2016 4. Close the temporary accounts and prepare a post-closing trial balance as of 12/31/2016. Success Systems, Inc. Unadjusted Trial Balance As of November 30, 2016 Debit Credit Cash 68,996 15,800 3,350 2,400 e Accounts Receivable Computer Supplies Prepaid Insurance Prepaid Rent Office Equipment Accumulated Depreciation-Office Equipment Computer Equipment Accumulated Depreciation-Computer Equip. Common Stock Dividends Computer Services Revenue Wages Expense Advertising Expense 10,000 25,000 110,000 32,550 3,150 1,790 Mileage Expense Co Misc. Expense Repairs Expense-Computer Totals 142,550 $ 142,550 The following transactions and/or events took place in December 2016 1. Paid $1,200 cash to Hilldale Mall for Success Systems' share of mall advertising costs. 2. Paid $500 cash for minor repairs to the company's computer. 3. Reccived $7,000 cash from Alex's Engineering Co. for the receivable from November 4. Paid cash to Michelle Jones for six days of work at a rate of $150 per day. 5. Notified by Alex's Engineering Company that Success's bid of $9,000 on a proposed project has been accepted. Alex's paid a $2,500 cash advance to Success Systems. 6. Purchase $2,100 of computer supplies on credit from Cain Office Products 7. Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8 8. Completed a project for Chang Corporation and received $3,620 cash. Took the week off for the holidays. 10. Received $3,000 cash from Gomez Co. on its receivable balance. 11. Reimbursed Lopez's business automobile mileage (800 miles at $.32 per mile). 12. Paid $2,000 cash for dividends -9. ddi 1. The December 31 inventory count of computer supplies shows $775 still available. 2. Three months have expired since the 12-month insurance premium was paid in advance. 3. As of December 31, Michelle Jones has not been paid for four days of work at $150 per day 4. The company's computer is expected to have a five-year life with no salvage value. 5. The office equipment is expected to have a four-year life with no salvage value 6. Three of the four months' prepaid rent has expired. Example 4.12-Preparing Closing Entries Seven expense accounts Three revenue accounts 52,900 52,900 pre-closing pre-closing 39,700 39,700 balance balance 0 Income Summary 39,700 52,900 Dividends 5,000 5,000 pre-closing balance 3,200 13,200 Retained Earnings 0 pre-closing balance 000 13,2 8.200 post-closing balance Dully Transit Company Work Sheet For the Month Ended January 31 Step 1 Step 2 Step 5 Income Statement DebitCredDebi CrediDebtCredit Trial Balance Trial Balance Adjusting Entries Debt Balance Sheet Debit Crecit Account Tcies Prepeid Insurance Accumulebed Deprecation-Garage e) 2,00048,000 60.000 le) 600 300,000 d) 4,000 Discount T dkers Sold in Advence Notes Payable Capzal Stook 4,000 4,600 50,000 400,000 25,000 20400 150,000 150,000 400,000 400,000 30,000 Daily Ticket Revenue Gas O, and Mainterance Expense2000 age and Salary Expense 30,000 12.000 12.800 bl 2,800 05,000 605,000 nterest Expense Deprecietion Expense Garage opreciaion Expense-Buses nsurance Expense Discount Tickot Revenue ent Receiveble ent Revenue (a) 1,500 f 20,400 20,400 20400 2,500 1,500 2,500 (a) 1,500 (b) 2,800 1,500 Wages and Saleries Payeble noome Tax Expense ncome Tax Payae 6.800 6800 40600 ozi200 623.20 '700 52900||683500 570300 Net Inoome 3.200