I don\'t know how to complete an accounting cycle for these transactions Decembe
ID: 2328685 • Letter: I
Question
I don't know how to complete an accounting cycle for these transactions
December 1st 20XX Trial Balance
Debit Credit
Cash 2,500
Accounts Receivable 3,000
Notes Receivable 1,000
Supplies 800
Land 22,600
Machinery 22,000
Accumulated Depreciation-Machine 2,400
Accounts Payable 5,000
Unearned Service Revenue 1,200
Common Stock 20,000
Retained Earnings 23,300
51,900 51,900
1. The following transactions occurred during December 20XX
December 5. Paid creditors $1,000
December 9. Billed customer for professional services completed, $1,000
December 17. Received collections from customers, $2,000
December 18. Ordered supplies on credit, $250
December 19. Professional fees earned received in cash, $7,000
December 29. Paid salaries to employees, $1,500
December 30. Paid rent expense, $2,000
a. Prepare appropriate December entries
b. Fill in the balances as of December 1, 20XX, in the ledger accounts (“T” Account form) and post December entries from the journal to the ledger.
2. Based upon the ledger account balances, prepare a trial balance for December 30, 20XX
1. Based upon the trial balance for Larkin Corporation for December 30, 20XX. Complete the adjusting entries below:
a. Supplies used, $300
a. Depreciation on Machinery, $500
b. Of the unearned Revenue, $400 has been earned during the period
c. Interest earned on a customer’s note receivable, $80
2. Create an adjusting trial balance
1. Based on the adjusted trial balance for December 30, 20XX, create Larkin’s Income Statement, Retained Earnings and Balance Sheet.
1. Prepare Closing Entries for Larkin Corporation at December 20XX
a. Step 1: Close revenues to Retained Earnings
b. Step 2: Close expenses to Retained Earnings
c. Close Dividends to Retained Earnings
Explanation / Answer
JOURNAL ENTRY FOR DECEMBER 20XX Date Account Title Debit Credit December,5 Accounts Payable $1,000 Cash $1,000 December,9 Accounts Receivable $1,000 Service Revenue $1,000 December,17 Cash $2,000 Accounts Receivable $2,000 December,18 No accounting entry isrequired at the time of ordering Entry is required after receipt of goods and invoice December,19 Cash $7,000 Service Revenue $7,000 December,29 Salaries expense $1,500 Cash $1,500 December,30 Rent expense $2,000 Cash $2,000 T-Accounts Cash Date Description Debit Credit December,01 Beginning Balance $2,500 December,5 Accounts Payable $1,000 December,17 Accounts Receivable $2,000 December,19 Service Revenue $7,000 December,29 Salaries expense $1,500 December,30 Rent expense $2,000 Ending Blance $7,000 Accounts Receivable Date Description Debit Credit December,01 Beginning Balance $3,000 December,9 Service Revenue $1,000 December,17 Cash $2,000 Ending Balance $2,000 Notes Receivable Date Description Debit Credit December,01 Beginning Balance $1,000 Supplies Date Description Debit Credit December,01 Beginning Balance $800 Land Date Description Debit Credit December,01 Beginning Balance $22,600 Machinery Date Description Debit Credit December,01 Beginning Balance $22,000 Accumulated Depreciation-Machine Date Description Debit Credit December,01 Beginning Balance $2,400 Accounts Payable Date Description Debit Credit December,01 Beginning Balance $5,000 December,5 Cash $1,000 Ending Balance $4,000 Unearned Service Revenue Date Description Debit Credit December,01 Beginning Balance $1,200 Common Stock Date Description Debit Credit December,01 Beginning Balance $20,000 Retained Earnings Date Description Debit Credit December,01 Beginning Balance $23,300 Service Revenue Date Description Debit Credit December,9 Accounts Receivable $1,000 December,19 Cash $7,000 Ending Balance $8,000 Salaries Expenses Date Description Debit Credit December,29 Cash $1,500 Rent expense Date Description Debit Credit December,30 Cash $2,000 TRIAL BALANCE,DECEMBER 30, 20XX ADJUSTING ENTRIES ADJUSTING TRIAL BALANCE Account Debit Credit Ref Debit Credit Account Debit Credit Cash $7,000 Cash $7,000 Accounts Receivable $2,000 Accounts Receivable $2,000 Notes Receivable $1,000 Notes Receivable $1,000 Supplies $800 a $300 Supplies $500 Land $22,600 Land $22,600 Machinery $22,000 Machinery $22,000 Accumulated Depreciation-Machine $2,400 a $500 Accumulated Depreciation-Machine $2,900 Accounts Payable $4,000 Accounts Payable $4,000 Unearned Service Revenue $1,200 b $400 Unearned Service Revenue $800 Common Stock $20,000 Common Stock $20,000 Retained Earnings $23,300 Retained Earnings $23,300 Service Revenue $8,000 b $400 Service Revenue $8,400 Salaries Expenses $1,500 Salaries Expenses $1,500 Rent expense $2,000 Rent expense $2,000 Total $58,900 $58,900 Supplies expense $300 Supplies expense a $300 Depreciation expense $500 Depreciation expense a $500 Interest Income $80 Interest Income c $80 Interest receivable $80 Interest receivable c $80 Total $59,480 $59,480 Income Statement Service Revenue $8,400 Interest Income $80 Total Income $8,480 Expenses: Salaries Expenses $1,500 Rent expense $2,000 Supplies expense $300 Depreciation expense $500 Totalexpenses $4,300 Income $4,180 Retained Earnings Retained Earning in the beginning $23,300 Add:Income transferred from comprehensive income statement $4,180 Ending Retained Earning $27,480 Balance Sheet Assets: Cash $7,000 Accounts Receivable $2,000 Notes Receivable $1,000 Supplies $500 Land $22,600 Machinery $22,000 Accumulated Depreciation-Machine ($2,900) Interest receivable 80 Total Assets $52,280 Liabilities: Accounts Payable $4,000 Unearned Service Revenue $800 TotalLiabilities $4,800 Shareholders' Equity: Common Stock $20,000 Retained Earnings $27,480 TotalShareholders'Equity $47,480 Total Liabilities & ShareholdersÉquity $52,280
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