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Sandra Martin owns and operates Accounting Solutions, a first-year service business. The attached Excel file includes the unadjusted trial balance for 12/31/2019. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the year ended 12/31/2019. a. The December 31 inventory count of supplies shows $615 still available. b. Six months have expired since the 12-month insurance premium of $2,700 was paid in advance. c. As of December 31, two employees have not been paid for 2 days of work at $350 per day. d. The company's computers, purchased on January 2nd, are expected to have a three-year life with no salvage value. e. The office furniture is expected to have a six-year life with no salvage value. f. The company earned $2,850 of the unearned revenue during the year. Requirements 1. Prepare adjusting entries to reflect accrual-based account balances for December 31, 2019. Use the General Journal - Adj Entries tab in Excel. Post those entries to the accounts in the ledger. Use the General Ledger tab in the Excel workbook. (6 points) 2. Prepare an adjusted trial balance as of December 31, 2019. Use the Adjusted TB- Dec 2019 tab in the Excel workbook. (5 points) 3. Prepare a worksheet for December 31, 2019. Use the Worksheet tab in the Excel workbook. (10 points) 4. Prepare an income statement for the year ended December 31, 2019. Prepare a statement of changes in owner's equity and balance sheet as of December 31, 2019. Use the appropriate tabs in the Excel workbook. (15 points) 5. Record and post the necessary closing entries for Accounting Solutions. Use the General Journal-Closing Ent tab in the Excel workbook. (4 points) 6. Prepare a post-closing trial balance as of December 31, 2019. Use the Post Closing TB tab in the Excel workbook (5 points) 7. All journal entries (adjusting, closing) must be posted to the General Ledger and correct balances computed. (5 points) These amounts should be linked to the cells in the post-closing trial balance. G Credit Debit 7 258 12,650 3,458 2,700 6,000 13 1,000 12.000 C D F G 1 Name 2 Trial Balance 3 4 Accounting Solutions 5 Unadjusted Trial Balance 6 12/31/2019 7 Acct # 8 101 Cash 9 106 Accounts Receivable 10 126 Supplies 11 128 Prepaid Insurance 12 163 Office Furniture 164 Accumulated Depreciation - Office Furniture 14 167 Computer Equipment 15 168 Accumulated Depreciation - Computer Equipment 16 201 Accounts Payable 17 210 Wages Payable 18 236 Unearned revenue 19 301 S. Martin, Capital 20 302 S. Martin Withdrawals 21 403 Accounting services revenue 22 612 Depreciation expense - Office Furniture 23 613 Depreciation expense - Computer Equipment 623 Wages Expense 25 637 Insurance Expense 26 640 Rent Expense 652 Supplies Expense 28 655 Advertising Expense 29 676 Mileage Expense 30 677 Miscellaneous Expense 31 32 Totals 33 34 35 36 37 4,000 7258 6,350 16,500 1 850 83,508 24 42,685 27 16,850 2,950 3,125 1,850 3.190 116,566 118,616 2,050 A B DEFG H Name 1 2 General Journal 3 GENERAL JOURNAL 4 5 6 Date Account Titles and Explanation P.R Debit Credit 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 4 Debit Credit 1 Name 2 Trial Balance 3 Accounting Solutions 5 Adjusted Trial Balance 6 12/31/2019 7 Acct # 8 101 Cash 9 106 Accounts Receivable 10 126 Supplies 11 128 Prepaid Insurance 12 163 Office Furniture 13 164 Accumulated Depreciation - Office Furniture 14 167 Computer Equipment 15 168 Accumulated Depreciation - Computer Equipment 16 201 Accounts Payable 17 210 Wages Payable 18 236 Unearned revenue 19 301 S. Martin Capital 20 302 S. Martin Withdrawals 21 403 Accounting services revenue 22 612 Depreciation expense - Office Furniture 23 613 Depreciation expense - Computer Equipment 24 623 Wages Expense 25 637 Insurance Expense 26 640 Rent Expense 27 652 Supplies Expense 28 655 Advertising Expense 29 676 Mileage Expense 30 677 Miscellaneous Expense 31 32 33 34 Accounting Solutions Work Sheet For Morth Ended December 31, 2019 Adana Balance Sheet Statement of Owner's Ey Dr O Cr. Income Statement Or Gr Or Cr Austed Trial Blanc De 7 258 12,650 3458 2.700 6,000 12.000 4000 3258 4000 7250 7 Thagat The Blue Accounts DI 10 Cash 7,258 11 Acivable 12,650 12 3.458 12 Prepare 2.700 16 Omer Fumitur 5.000 15 Amated Depreciation omico Futuro 10 Camouter quent 12.000 17 Aboumated Depreciation Computer Equipment 10 Accounts Payati 19 Wagen Payable 20 Uncamerovou 21 Marin, Capital 22 S. Martin Mathew TO 29 Avenue 24 Depreciation pense Office Future 2 Dupon pense Computer quipment 26 Wagen en 27 Insurance 21 Rent Expo 1650 20 Beoples 30 foring X120 31 Maage Expande 1050 Miscellaneous Expense 34 6360 15.50 6.39 25.000 NO B 4.000 4000 42 MS 16850 2125 1150 RRRRRR B C D E F G . Name 1 2 Income Statement 3 4 5 6 7 8 9 10 11 Accounting Solutions Income Statement For Month Ended December 31, 2019 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 B F G H 1 D E Name Statement of Owner's Equity and Balance Sheet 2 3 4 5 6 Accounting Solutions Statement of Changes in Owner's Equity For Month Ended December 31, 2019 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Accounting Solutions Balance Sheet December 31, 2019 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Name General Journal GENERAL JOURNAL Date Account Titles and Explanation P.R. Debit Credit 5 6 7 8 9 0 1 2 3 24 25 26 27 28 29 30 31 32 33 34 35 36 37 2 Post Closing Trial Balance 3 4 5 6 Accounting Solutions Post-Closing Trial Balance December 31, 2019 Debit Credit 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Totals 29 30 31 32 33 Sandra Martin owns and operates Accounting Solutions, a first-year service business. The attached Excel file includes the unadjusted trial balance for 12/31/2019. The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the year ended 12/31/2019. a. The December 31 inventory count of supplies shows $615 still available. b. Six months have expired since the 12-month insurance premium of $2,700 was paid in advance. c. As of December 31, two employees have not been paid for 2 days of work at $350 per day. d. The company's computers, purchased on January 2nd, are expected to have a three-year life with no salvage value. e. The office furniture is expected to have a six-year life with no salvage value. f. The company earned $2,850 of the unearned revenue during the year. Requirements 1. Prepare adjusting entries to reflect accrual-based account balances for December 31, 2019. Use the General Journal - Adj Entries tab in Excel. Post those entries to the accounts in the ledger. Use the General Ledger tab in the Excel workbook. (6 points) 2. Prepare an adjusted trial balance as of December 31, 2019. Use the Adjusted TB- Dec 2019 tab in the Excel workbook. (5 points) 3. Prepare a worksheet for December 31, 2019. Use the Worksheet tab in the Excel workbook. (10 points) 4. Prepare an income statement for the year ended December 31, 2019. Prepare a statement of changes in owner's equity and balance sheet as of December 31, 2019. Use the appropriate tabs in the Excel workbook. (15 points) 5. Record and post the necessary closing entries for Accounting Solutions. Use the General Journal-Closing Ent tab in the Excel workbook. (4 points) 6. Prepare a post-closing trial balance as of December 31, 2019. Use the Post Closing TB tab in the Excel workbook (5 points) 7. All journal entries (adjusting, closing) must be posted to the General Ledger and correct balances computed. (5 points) These amounts should be linked to the cells in the post-closing trial balance. G Credit Debit 7 258 12,650 3,458 2,700 6,000 13 1,000 12.000 C D F G 1 Name 2 Trial Balance 3 4 Accounting Solutions 5 Unadjusted Trial Balance 6 12/31/2019 7 Acct # 8 101 Cash 9 106 Accounts Receivable 10 126 Supplies 11 128 Prepaid Insurance 12 163 Office Furniture 164 Accumulated Depreciation - Office Furniture 14 167 Computer Equipment 15 168 Accumulated Depreciation - Computer Equipment 16 201 Accounts Payable 17 210 Wages Payable 18 236 Unearned revenue 19 301 S. Martin, Capital 20 302 S. Martin Withdrawals 21 403 Accounting services revenue 22 612 Depreciation expense - Office Furniture 23 613 Depreciation expense - Computer Equipment 623 Wages Expense 25 637 Insurance Expense 26 640 Rent Expense 652 Supplies Expense 28 655 Advertising Expense 29 676 Mileage Expense 30 677 Miscellaneous Expense 31 32 Totals 33 34 35 36 37 4,000 7258 6,350 16,500 1 850 83,508 24 42,685 27 16,850 2,950 3,125 1,850 3.190 116,566 118,616 2,050 A B DEFG H Name 1 2 General Journal 3 GENERAL JOURNAL 4 5 6 Date Account Titles and Explanation P.R Debit Credit 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 4 Debit Credit 1 Name 2 Trial Balance 3 Accounting Solutions 5 Adjusted Trial Balance 6 12/31/2019 7 Acct # 8 101 Cash 9 106 Accounts Receivable 10 126 Supplies 11 128 Prepaid Insurance 12 163 Office Furniture 13 164 Accumulated Depreciation - Office Furniture 14 167 Computer Equipment 15 168 Accumulated Depreciation - Computer Equipment 16 201 Accounts Payable 17 210 Wages Payable 18 236 Unearned revenue 19 301 S. Martin Capital 20 302 S. Martin Withdrawals 21 403 Accounting services revenue 22 612 Depreciation expense - Office Furniture 23 613 Depreciation expense - Computer Equipment 24 623 Wages Expense 25 637 Insurance Expense 26 640 Rent Expense 27 652 Supplies Expense 28 655 Advertising Expense 29 676 Mileage Expense 30 677 Miscellaneous Expense 31 32 33 34 Accounting Solutions Work Sheet For Morth Ended December 31, 2019 Adana Balance Sheet Statement of Owner's Ey Dr O Cr. Income Statement Or Gr Or Cr Austed Trial Blanc De 7 258 12,650 3458 2.700 6,000 12.000 4000 3258 4000 7250 7 Thagat The Blue Accounts DI 10 Cash 7,258 11 Acivable 12,650 12 3.458 12 Prepare 2.700 16 Omer Fumitur 5.000 15 Amated Depreciation omico Futuro 10 Camouter quent 12.000 17 Aboumated Depreciation Computer Equipment 10 Accounts Payati 19 Wagen Payable 20 Uncamerovou 21 Marin, Capital 22 S. Martin Mathew TO 29 Avenue 24 Depreciation pense Office Future 2 Dupon pense Computer quipment 26 Wagen en 27 Insurance 21 Rent Expo 1650 20 Beoples 30 foring X120 31 Maage Expande 1050 Miscellaneous Expense 34 6360 15.50 6.39 25.000 NO B 4.000 4000 42 MS 16850 2125 1150 RRRRRR B C D E F G . Name 1 2 Income Statement 3 4 5 6 7 8 9 10 11 Accounting Solutions Income Statement For Month Ended December 31, 2019 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 B F G H 1 D E Name Statement of Owner's Equity and Balance Sheet 2 3 4 5 6 Accounting Solutions Statement of Changes in Owner's Equity For Month Ended December 31, 2019 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Accounting Solutions Balance Sheet December 31, 2019 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Name General Journal GENERAL JOURNAL Date Account Titles and Explanation P.R. Debit Credit 5 6 7 8 9 0 1 2 3 24 25 26 27 28 29 30 31 32 33 34 35 36 37 2 Post Closing Trial Balance 3 4 5 6 Accounting Solutions Post-Closing Trial Balance December 31, 2019 Debit Credit 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Totals 29 30 31 32 33

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