Question

baskness ecalled s. She invested 510,000 cash and S15.000 rchased canlh a one-year insurance policy for the business. tt cost $1200 4 S 0a December , Expressions paid 5500 cash to rent space in a strip ma 2. On December 31;.Espresions owed $250 to the aistast whe for Decembet On December 4, it purchased $1200 of equipmsent on credin tor the shop worked during the last week of December. She will not be paid ustil 3. Record one month of the insurance that was purchased at the 6. On December 5, Espressions opened for business. Cash received from services previded in the first week and a hals efbasiness (ended beginning of December. Decemsber 15) is 5825. 7. O December 15, It provided $100 of hakreuting services on account. Prepare the adjusting entries listed above. Record them on the Trial Balance Worksheet and in the General Ledger accounts. Prepare an Adjusted Trial Balance Prepare an Income Statement r 17, it received a 5100 check for services previously r 17, it paid S125 to an assistant for workiag during the rendered on a 10. Cash recelved from services provided during the second half of December 11. Os December 31, iu paid a $400 installmest toward priscipal on the wote 12. Os December 31, Workmas made a 5900 cash withdrawal for pervonal Prepare the closing entries and record in the General Ledger account. Prepare a post-closing trial balance payable entered into on December 4. . Prepare journal entries for the trassactions listed above. C. Prepare a trial balance as of December 31".

Answer 1

A. In the books of Expressions:

Date	Account Titles	Debit	Credit
		$	$
Dec 1	Cash	10,000
	Equipment	15,000
	S. Workman, Capital		25,000
Dec 1	Prepaid Insurance	1,200
	Cash		1,200
Dec 2	Furniture	600
	Cash		600
Dec 3	Rent Expense	500
	Cash		500
Dec 4	Equipment	1,200
	Note Payable		1,200
Dec 15	Cash	825
	Service Revenue		825
Dec 15	Accounts Receivable	100
	Service Revenue		100
Dec 17	Cash	100
	Accounts Receivable		100
Dec 17	Wages Expense	125
	Cash		125
Dec 31	Cash	930
	Service Revenue		930
Dec 31	Notes Payable	400
	Cash		400
Dec 31	S. Workman, Withdrawals	900
	Cash		900

B. Cash:

Beg. bal.	0	Dec 1	1,200
Dec 1	10,000	Dec 2	600
Dec 15	825	Dec 3	500
Dec 17	100	Dec 17	125
Dec 31	930	Dec 31	400
		Dec 31	900
End. bal.	8,130

Accounts Receivable:

Beg. bal.	0	Dec 17	100
Dec 15	100
End. bal.	0

Prepaid Insurance:

Dec 1	1,200

Equipment:

Dec 1	15,000
Dec 4	1,200
End. bal.	16,200

Furniture:

Beg. bal.	0
Dec 2	600
End. bal.	600

Notes Payable:

Dec 31	400	Beg. bal.	0
		Dec 4	1,200
		End. bal.	800

S. Workman, Capital:

		Beg. bal	0
		Dec 1	25,000
		End. bal	25,000

S. Workman, Withdrawals:

Beg. bal.	0
Dec 31	900

Service Revenue:

		Dec 15	825
		Dec 15	100
		Dec 31	930
			1,855

Rent Expense:

Dec 3	500
	500

Wages Expense:

Dec 17	125
	125

C.

Expressions Unadjusted Trial Balance December 31
Account Titles	Debit	Credit
	$	$
Cash	8,130
Accounts Receivable	0
Prepaid Insurance	1,200
Furniture	600
Equipment	16,200
Notes Payable		800
S. Workman, Capital		25,000
S. Workman, Withdrawals	900
Service Revenue		1,855
Rent Expense	500
Wages Expense	125
Totals	$ 27,655	$ 27,655