WebCast Design is website designing company that specializes in creating websites for other businesses so that they are user friendly and up-to-date. With their specialized software and computer savvy technicians, creating websites is quite easy. WebCast Design's unadjusted trail balance for November 30, 2018 is listed below. The balances currently represent the first 11 months of 2018, and the balances in WebCast's common stock and retained earnings accounts have not changed since December 31, 2017 Currently, 6,000 shares of stock are outstanding and 10,000 shares have been authorized. All income tax effects are to be ignored for this project. WebCast Design Unadjusted Trial Balance November 30, 2018 REF DEBIT CREDIT 11132.000 Accounts Receivable 112 2,000 Supplies Inventory 113 800 Prepaid Rent 114 700 Prepaid Advertising 115 100 Prepaid Insurance 116 1,460 Equipment 13125.000 Accumulated Depreciation Equipment 1321 1 0,000 Building 135 110,000 Accumulated Depreciation, Building 136 15,000 Accounts Payable 11.300 Wages Payable 212 Utilities Payable 213 Interest Payable 2141 Uncamed Service Revenue 220 Long-Term Notes Payable 231 Common Stock (35 par value) 311 50.000 Dividends 3121 Retained Famnings 313 29000 Income Summary 3141 Service Revenue 411 1 40.920 Insurance Expense Wages Expense $1182.200 Rent Expense $129.000 Supplies Expense 5141 Utilities Expense SIS 2.500 Advertising Expense 516 3,400 Maintenance Expense 517) 110 Depreciation Expense, Equipment 5181 Depreciation Expense, Building 519 Interest Expense 520 Totals 269 270 269.270 211 150 $10 Dec 2 Paid $1,700 in advertisements with Yahoo, in advance for December through February. Purchased computer equipment for $4,350, paying cash. 4 Designed websites for Murley Co., on account, $2.225. 6 Johnny Bulsky wanted to become a shareholder (owner) of the corporation, so Webcast sold Johnny 1,500 shares of $5 par value common stock for $5 a share. 11 Purchased $625 of computer supplies, paying $200 in cash with the remainder on account. 13 Received $3,000 from Scott Co. for services that will begin December 20h and will not finish until sometime in January. 16 Paid wages of $5,000 for December 1 through 14. 22 Purchased more equipment totaling $12,200 by paying $2,200 in cash and giving a long-term note payable for the balance. The note will be paid monthly beginning January 22, 2019 over the next 2 years. 23 Received bill from Frankie's Cleaning Crew. The bill was $300 for their cleaning services during November 23 through December 22. 24 Designed websites for Fray Co. on account, $1,500. 26 Paid for $5,500 insurance on the building, coverage on this renewal begins January 1, 2019. 27 Performed services for NWQ Co. for $1,100. NWQ paid $550 cash today and will pay the balance later. 28 Paid bill to Frankie's Cleaning Crew from December 23. 29 Fray Co. paid half of their bill from December 24. 31 Billed a company $1,000 for creating a new website. They will not pay until sometime in January. 31 Declared and paid a $700 dividend to shareholders. 31 Paid $1,200 rent for the lease of an automobile. This payment is for Jan. - March, 2019. 31 Received $250 electric bill from Consumer's Energy for this month. Will pay later. 31 Paid $375 in accounts payable. REQUIREMENTS 1. Prepare and post journal entries to record the December transactions listed above. 2. Prepare a 6 column worksheet and enter the December 31 unadjusted balance from the accounts. Also, enter adjusting entries for the following items, and complete the worksheet. a. Prepaid insurance expenses paid in advance in November (for use in December) have now been used for the month of December. The amount totaling to $460 can now be expensed. b. Prepaid rent represents payments in advance with regard to several rental agreements. An examination of those agreements reveals that $800 remains unexpired at December 31. c. The supply inventory for the end of December 31" was $440. d. Depreciation for the year on equipment was $1,100. e. Depreciation for the year on the building was $5,025. f. Unpaid wages as of December 31" was $150. h. Prepaid advertising of $1,200 remains prepaid at December 31, because these advertisements will not appear until various times in 2019. i. As of December 31, $800 of unearned revenue has been earned j. Interest is accrued on the two notes payable. The $22,000 note payable is for cash borrowed from the bank on September 1, 2018, and the note has a 6% annual interest rate. The $10,000 note payable from December 22 has a 5% annual interest rate. Use 9 days to determine interest expense on this note. Prepare one adjusting entry to accrue interest on both notes. Journalize and post the adjusting entries to the general ledger. Please note, you put these adjustments in the worksheet (#2 above) and you also record them in the journal, and post them to the ledger. Journalize and post the closing entries. 5. Prepare an income statement, statement of retained earnings, and a classified balance sheet for the year-ended December 31, 2019. 1. Prepare 19 journal entries based on information on the top of page 3. 2. Prepare 9 adjusting journal entries for items a. through j. in number 2 on page 3. 3. Prepare 4 closing journal entries (one to close revenues to income summary, one to close expenses to income summary, one to close income summary to retained earnings, and one to close dividends to retained earnings). 4. Post ALL journal entries (19+9+4 = 32) to the general ledgers and keep a running tally on each general ledger. For example, the first journal entry has a credit to cash of $1,700. That should go on line two of the cash general ledger and the updated balance (at that time) of cash is $30,300 ($32,000 from the unadjusted November 30, 2018 trial balance minus $1,700). By posting the closing journal entries to the general ledgers, the revenue, expense, and income summary general ledgers should all have ending balances of $0. 5. Fill out the trial balance worksheet on page 19. Here's how you do it: a. The balances in the unadjusted trial balance columns are NOT the balances from the November 30, 2018 trial balance. They are the balances on the general ledgers after completing the 19 journal entries ONLY. The balances on the general ledgers at that time will already include the November 30, 2018 balances. balance columns are those from the 9 adjusting journal entries. c. In order to get the adjusted trial balance numbers, you do the following: i. If the unadjusted column has a debit and the adjustments columns are blank, then the adjusted column is a debit that equals the debit in the unadjusted column. ii. If the unadjusted column has a credit and the adjustments columns are blank, then the adjusted column is a credit that equals the credit in the unadjusted column. iii. If the unadjusted column has a debit and the adjustments column has a debit, then add the two debits together to get the number that belongs in the adjusted column as a debit. iv. If the unadjusted column has a debit and the adjustments column has a credit, then take the debit minus the credit to get the number that belongs in the adjusted column as a debit. V. If the unadjusted column has a credit and the adjustments column has a credit, then add the two credits together to get the number that belongs in the adjusted column as a credit. vi. If the unadjusted column has a credit and the adjustments column has a debit, then take the credit minus the debit to get the number that belongs in the adjusted column as a credit. vii. If the unadjusted columns are blank and the adjustments column has a debit, then the adjusted vii. If the unadjusted columns are blank and the adjustments column has a debit, then the adjusted column is a debit that equals the debit in the adjustments column. viii. If the unadjusted columns are blank and the adjustments column has a credit, then the adjusted column is a credit that equals the credit in the adjustments column. 6. Prepare the income statement, statement of retained earnings, and the balance sheet. 7. For extra credit (if you want), prepare a post- closing trial balance (which is simple): a. Cash through Common stock is the same. Retained earnings is the ending number on the statement of retained earnings ($66,584). Dividends, revenues, and expenses are all $0, so do NOT include them! I have information on 1 of the 19 journal entries: 1. The eighteenth journal entry (dated 12/31) should be a debit to Utilities expense and a credit to Utilities payable for $250. I have information on 1 of the 9 adjusting journal entries: 1. The ninth adjusting journal entry (item j.) should be a debit to Interest expense and a credit to Interest payable for $453 [(22,000x6%x(4/12) +(10,000x5%x(9/360)]