This portfolio project will be dedicated to application of knowledge in the field of accounting in practice by drawing up financial statements. Preparing Trial Balance For this Portfolio Project, follow several steps of the accounting cycle that include analyzing transactions, preparing journal entries, and posting the transactions to the ledger accounts.

As a result, prepare a trial balance for year 20X1. Assume the following transactions took place in November and December 20X1:

Nov. 26 Invested cash $20,000 to start your business, Memo 01.

Nov. 30 Issued Check 101 for $2,000 to pay for rent in November and December.

Dec. 1 Issued Check 102 for $3,000 for a one-year insurance policy.

Dec. 1 Purchased Inventory on account from Olivka Company with a due payment in 60 days, $2,000, Invoice 1342.

Dec. 2 Purchased kitchen equipment from Cucina Inc. for $6,000 (Invoice 5431), issued Check 103 for $3,000, and agreed to pay the balance in 30 days .

Dec. 3 Purchased inventory from Bevanda Company with cash payment, issued Check 104 for $3,600.

Dec. 4 Issued Check 105 for $500 to pay for advertising expense.

Dec. 8 Maestro Services LLC bought lunches for its employees for 1 month on credit, $2,500 net; sales tax 5%; Sales Slip 301.

Dec. 15 Purchased Inventory costing $1,800 from Jolly Plus, Invoice 2341, terms 2/10, n/30, with freight charges of $100 paid by Jolly Plus and added to the invoice.

Dec. 20 Issued Check 106 for partial payment to Cucina Inc. for the kitchen equipment, $1,000. Dec. 24 Issued Check 108 to pay the balance owed to Jolly Plus.

Dec. 27 Received a cash payment from Maestro Services LLC to cover the liability.

Dec. 31 Sales in cash for $8,300, sales tax 5%.

Dec. 31 The owner's withdrawal for personal expenses $1,000, Check 109.

Below is the information that use for adjusting entries:

Merchandise Inventory on hand at the end of the month is $4,700. use the periodic inventory system.

use straight-line depreciation method. The estimated useful life of the purchased equipment is 5 years. Make sure to record the Rent and Insurance expired in December.

You and your assistant earned $4,830 for salaries in December. The salaries expense has not been recorded because the employees will not be paid until January 10, 20X2. Ignore the payroll taxes and refer to this article to record the salaries that were accrued but not paid.

1. journal entries for the above transactions.

a) For the template of the General Journal

b) Make sure to record the date, names of debited and credited accounts, descriptions and document numbers (whenever possible) for each transaction.

c) Use account Purchases to record transactions associated with buying inventory.

2. Post the above transactions to the ledger accounts.

3. a) Trial Balance b. Use the following accounts:

1 Cash

2 Accounts receivable

3 Prepaid rents

4 Prepaid insurance

5 Merchandize Inventory

6 Equipment

7 Accumulated depreciation - Equipment

8 Accounts payable

9 Salaries Payable

10 Sales Tax payable

11 Capital

12 Drawing

13 Income Summary

14 Sales

15 Purchases

16 Freight in

17 Purchases discounts

18 Advertising expense

19 Salaries expense

20 Depreciation expense - equipment

21 Rent expense

22 Insurance expense

23 Totals

4. Make the adjusting entries on December 31, 20X1 and journalize them.

a) record adjusting entries for Prepaid Rent, Prepaid Insurance and Depreciation. Provide all the necessary calculations.

b) To record accrued salaries, use the following adjusting entry: Salaries Expense is debited, Salaries Payable is credited

. c) You will also make adjusting entries using the accounts Merchandize Inventory and Income Summary.

First, the beginning inventory is taken off from the books by transferring the account balance to the debit of the Income Summary account. Record the following entry: Income Summary is debited, and Merchandise Inventory is credited.

Second, the ending inventory is placed on the books by debiting Merchandise Inventory and crediting Income Summary.