Prepare journal entries to record the December transactions in the General Journ
ID: 2463879 • Letter: P
Question
Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.
1-Dec Began business by depositing $7500 in a bank account in the name of the company in exchange for
750 shares of $10 per share common stock.
1-Dec Paid the rent for the current month, $1150 .
1-Dec Paid the premium on a one-year insurance policy, $1080 .
1-Dec Purchased Equipment for $4200 cash.
5-Dec Purchased office supplies from XYZ Company on account, $300 .
15-Dec Provided services to customers for $8000 cash.
16-Dec Provided service to customers ABC Inc. on account, $6400 .
21-Dec Received $2800 cash from ABC Inc., customer on account.
23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 .
28-Dec Paid wages for the period December 1 through December 28, $4480 .
30-Dec Declared and paid dividend to stockholders $200 .
#2. Post all of the December transactions from the “General Journal” tab to the T-accounts under the “T-Accounts” tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts.
#3. Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31.
#4. Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" .
Provide the total of the credit column from the Unadjusted Trial Balance ____________
#5. Record the following four transactions as adjusting entries under the “General Journal” tab.
31-Dec One month’s insurance has been used by the company $90.
31-Dec The remaining inventory of unused office supplies is $90.
31-Dec The estimated depreciation on equipment is $70.
31-Dec Wages incurred from December 29 to December 31 but not yet paid or recorded total $480.
#6. Post all of the adjusting entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31.
#7. Prepare the adjusted trial balance under the “Adjusted Trial Balance” tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" .
Provide the following accounts balances from the Adjusted Trial Balance:
Cash ________
Accounts Receivable _________
Supplies ___________
Prepaid Insurance ____________
Equipment ____________
Accumulated Depreciation _______________
Accounts Payable ______________
Wages Payable _____________
Common Stock _____________
Retained Earnings __________
#8. Prepare Income Statement, Statement of Stockholder’s Equity, and Classified Balance Sheet under the “Financial Statements” tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx".
Provide the following amount from the Income Statement:
Service Revenue _____________
Depreciation Expense _________
Wages Expense ___________
Supplies Expense ___________
Rent Expense ___________
Insurance Expense ____________
Net Income ___________
Provide the following account balance from the Statement of Stockholders' Equity:
Dividends ___________
Provide the following account balances from the Balance Sheet:
Current Assets _______
Long-Term Assets __________
Total Liabilities _________
Total Stockholder’s Equity __________
Cash ____________
#9. Record the closing entries under the “General Journal” tab.
#10. Post all of the closing entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted.
Provide the ending balance of Cash at December 31 from the T-account _______
Provide the balance of the Retained Earnings T-account after closing entries have been posted. _________
Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet? ___________
Check Point: Total Assets $ 15,830.00
Explanation / Answer
Journal entries are
Date
Particulars
Debit
Credit
Dec - 1
Cash
7500
Common Stock
7500
Dec - 1
Rent Expense
1150
Cash
1150
Dec - 1
Insurance expense
1080
Cash
1080
Dec - 1
Equipment
4200
Cash
4200
Dec -5
Supplies expense
300
Accounts payable
300
Dec -15
Cash
8000
Service revenue
8000
Dec-16
Accounts receivable
6400
Service revenue
6400
Dec -21
Cash
2800
Accounts receivable
2800
Dec -23
Accounts payable
170
Cash
170
Dec -28
Wages expense
4480
Cash
4480
Dec-30
Dividends
200
Cash
200
Dec-31
Prepaid insurance
990
Insurance expense
990
Dec- 31
Supplies
90
Supplies expense
90
Dec- 31
Depreciation
70
Accumulated depreciation
70
Dec- 31
Wages expense
480
Wages Payable
480
Date
Particulars
Debit
Credit
Dec - 1
Cash
7500
Common Stock
7500
Dec - 1
Rent Expense
1150
Cash
1150
Dec - 1
Insurance expense
1080
Cash
1080
Dec - 1
Equipment
4200
Cash
4200
Dec -5
Supplies expense
300
Accounts payable
300
Dec -15
Cash
8000
Service revenue
8000
Dec-16
Accounts receivable
6400
Service revenue
6400
Dec -21
Cash
2800
Accounts receivable
2800
Dec -23
Accounts payable
170
Cash
170
Dec -28
Wages expense
4480
Cash
4480
Dec-30
Dividends
200
Cash
200
Dec-31
Prepaid insurance
990
Insurance expense
990
Dec- 31
Supplies
90
Supplies expense
90
Dec- 31
Depreciation
70
Accumulated depreciation
70
Dec- 31
Wages expense
480
Wages Payable
480