70.2K

Verified Solution

Link Copied!

Part 1 will contain a chart of accounts with opening account balances, list of business transactions, journaling all transactions into the general journal, and updating each account balance. Upon submission, your instructor will indicate which journal entries and/or T-Acct entries are incorrect. Part 2 will have you correct any mistakes and then complete the project. The remaining parts of the project will include preparing an adjusted trial balance, income statement, statement of retained earnings, balance sheet, closing entries, and postclosing trial balance. Dec. 1" - Collected $700 from Franklin from a previous engagement in Oct. Dec. 2 - Paid $1,550 on Gusto's Inc. invoice from a previously recorded transaction with check \#1301. Dec 3 - Paid December rent of $2,150 with check #1302. Dec 4 - Completed additional work for Washington, sent invoice \#Y77P for $1,450 due in 1 month. Dec. 5 - Paid employee from work previously expensed in Nov. with payment due Dec. 5 using check \#1303. Dec. 8 - Purchased land on a note for $32,000 to be used for future construction of a new office building. Land and Notes payable will have account numbers of 150 and 240 , respectively. Dec. 9 - Paid $1,400 to cover all utilities for the month of Dec using check \#1304. Dec. 10 - Completed $500 worth of work for a repeat customer who pays cash immediately upon completion. Dec. 11 - Collected $900 from Washington from a previous engagement in Nov. Dec. 12 - Our employee earned two weeks of pay amounting to $1,650, to be paid Dec. 23n. *employee took vacation from Dec. 15-Dec. 31. No pay will accrue* Dec. 15 - Leah Tyler, the owner, withdrew $3,250 for personal use using check \#1305. Dec. 16 - Completed a large job for Franklin for $11,500. Sent invoice \#Y78P due Jan. 31. Dec. 22 - Franklin paid $2,550 to pay off some of his balance due. Dec. 23 - Paid our employee for the work expensed Dec. 12. Dec 24-Dec. 31 Owner took off the rest of the year. Part 1 will contain a chart of accounts with opening account balances, list of business transactions, journaling all transactions into the general journal, and updating each account balance. Upon submission, your instructor will indicate which journal entries and/or T-Acct entries are incorrect. Part 2 will have you correct any mistakes and then complete the project. The remaining parts of the project will include preparing an adjusted trial balance, income statement, statement of retained earnings, balance sheet, closing entries, and postclosing trial balance. Dec. 1" - Collected $700 from Franklin from a previous engagement in Oct. Dec. 2 - Paid $1,550 on Gusto's Inc. invoice from a previously recorded transaction with check \#1301. Dec 3 - Paid December rent of $2,150 with check #1302. Dec 4 - Completed additional work for Washington, sent invoice \#Y77P for $1,450 due in 1 month. Dec. 5 - Paid employee from work previously expensed in Nov. with payment due Dec. 5 using check \#1303. Dec. 8 - Purchased land on a note for $32,000 to be used for future construction of a new office building. Land and Notes payable will have account numbers of 150 and 240 , respectively. Dec. 9 - Paid $1,400 to cover all utilities for the month of Dec using check \#1304. Dec. 10 - Completed $500 worth of work for a repeat customer who pays cash immediately upon completion. Dec. 11 - Collected $900 from Washington from a previous engagement in Nov. Dec. 12 - Our employee earned two weeks of pay amounting to $1,650, to be paid Dec. 23n. *employee took vacation from Dec. 15-Dec. 31. No pay will accrue* Dec. 15 - Leah Tyler, the owner, withdrew $3,250 for personal use using check \#1305. Dec. 16 - Completed a large job for Franklin for $11,500. Sent invoice \#Y78P due Jan. 31. Dec. 22 - Franklin paid $2,550 to pay off some of his balance due. Dec. 23 - Paid our employee for the work expensed Dec. 12. Dec 24-Dec. 31 Owner took off the rest of the year

Answer & Explanation Solved by verified expert

See Answer