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Cash $-$ $$37,000($Debit$)$

Accounts Payable $-$ $$5,000($Credit$)$

Common Stock $-$ $$20,000($Credit$)$

Retained Earnings $-$ $$5,000($Credit$)$

Revenue $-$ $$15,000($Credit$)$

Expenses $-$ $$8,000($Debit$)$

PLEASE NOTE: DO NOT Skip STEP $1$ or your case study will be wrong!!!

Step $2$: Journalize the transactions on page $35($May $1-$ May $30)$ in the

General Journal $($pages $37$ and $39)$

Remember to SKIP a row between each journal entry.

DO NOT create an entry for the May $25$th transaction $($It does not provide

enough information to complete an entry$).$

Step $3$: Post each journal entry to the General Ledger Accounts $($pages

$45,47,$ and $49)$

Step $4$: Prepare the Unadjusted Trial Balance $($page $55)$

Make sure you use the balances in the General Ledger Accounts to get

the account totals for the Unadjusted Trial Balance

Don't forget to calculate the column totals $($add up the debit and credit

columns $($they should equal$/$have the same total$).$

PLEASE NOTE: THE UNADJUSTED TRIAL BALANCE MUST BE COMPLETED

BEFORE THE ADJUSTING ENTRIES ARE RECORDED OR THE BALANCES

WILL BE WRONG!!!

Step $5$: Journalize each Adjusting Entry $($May $31$st transactions$)$ in the

General Journal titled "Adjusting Entries"$($page $41)$

The adjustments are for May only $($for example, the prepaid insurance

adjustment is for one month$/$May$)$

For the depreciation adjusting entry, the monthly depreciation

amount is $$100.$ You will learn how to calculate this in Chapter $9.$

To complete the tax adjusting entry you need to know your "Income from

Qperations" which is $$14,850.$ The tax amount is calculated as follows:

Income from Operations $x$ the Tax Rate $($ $$14,85040\%=$

$$5,940)$ Therefore, the tax amount you need to accrue is $$5,940$

Step $6$: Post the Adjusting Entries to the General Ledger

Accounts $($pages $45,47,$ and $49)$

Step $7$: Prepare the Adjusted Trial Balance $($page $57)$

Make sure you use the balances in the General Ledger Accounts AFTER the

adjusting entries have been posted to get the balances for the ATB

Don't forget to calculate the column totals $($add up the debit and credit

columns $($they should equal$/$have the same total$).$

For Part $1$ of Case Study $3$ you should upload$/$submit the following items:

Make sure your FIRST and LAST name are written on the top of EVERY

page or you will receive a zero!!

Journal Entries $-$ recorded in the General Journal on page $37$

General Ledger Accounts $-$ pages $45,47,$ and $49$

Unadjusted Trial Balance $-$ page $55($make sure you calculate the ending

totals of both columns$).$

Adjusting Journal Entries $-$ recorded in the General Journal on page $41$

Adiusted Trial Balance $-$ page $57($make sure vou calculate the ending totals of

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