Youve just secured a new client in your accounting practice, Peter's Auto Supply Corporation (PASC), a brand new small business specializing in providing auto supplies to car repair shops. The owner, Peter Peck, is a terrific auto mechanic, but definitely not an accountant. Your job is to help Peter put his affairs in order. Luckily, Peter has only been in operation for a month and things have not gotten too out of hand yet! Peter has to submit his financial statements to his investors and doesnt know where to begin. Its your job to go through the complete Accounting cycle to prepare the financial statements for PASC.

In this project, you will need to complete the following steps for PASC.

1. Prepare the Journal Entries in the General Journal
2. Post Journal Entries to the General Ledger
3. Prepare a Trial Balance
4. Prepare the Adjusting Entries
5. Post Adjusting Entries to the General Ledger
6. Prepare an Adjusted Trial Balance
7. Prepare the Financial Statements
8. Prepare the Closing Entries
9. Post Closing Entries to the General Ledger
10. Prepare the Post Closing Trial Balance

Requirement #4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations! a) One month's insurance has expired. b) One month's prepaid Rent has expired. c) The company accrued salaries of $6,000 that will be paid in August. d) Accrued interest on the note payable amounts to $250.

DateAccount Number from Chart of Accounts tabAccount Title from Chart of Accounts tabDebitCredit