Question

Need help setting up Adjusted balance, Unadjusted balance, trial balance, Income statement, balance sheet, retained earnings, and closing entries.

Guadalupe Rios demonstrated entrepreneurial spirit by starting a graphic design business called G's Designs. Based on an excellent business plan, Guadalupe was able to raise sufficient capital to begin operations on 1 July 2019. Guadalupe must now close the books at 31 December and prepare financial statements, 4 6 8 Item Adjusting entries needed 1 The balance in the Prepaid Insurance is from annual premium paid on 1 July 2 Office supplies were physically counted on 31 December 2019, totalling $1,300. 3 The equipment was purchased on the first day of operations. It is expected to last 8 years. Completed 25% of the design services for the only customer who paid in advance. $ Unpaid wages at 31 December are $800. Sent invoices for $20,000 in Design work completed the last week of December 7 The utility bill for December has not yet been received. The average utility bill is $150. Rent is payable one year in advance. On 1 July, 12 months of rent was paid. 9 Guadalupe paid a $2,200 Dividend to the Stockholders G's Designs General Ledger Accounts G's Designs Accounts Payable Unadjusted Trial Balance Accounts Receivable As of 31 December 2019 Accumulated Depreciation DEBIT CREDIT Cash Cash 11,020.00 Common Stock Accounts Receivable 8,000.00 Depreciation Expense Prepaid Insurance 16,000.00 Design Fees Earned Prepaid Rent 17,000.00 Dividend Office Supplies 4,500.00 Equipment Equipment 24,000.00 Insurance Expense Accounts Payable 9,770.00 Office Supplies Unearned Fees 7,500.00 Prepaid Insurance Common Stock 60,000.00 Prepaid Rent Design Fees Earned 8.000,00 Rent Expense Utilities Expense 750.00 Retained Earnings Wages Expense 4,000.00 Supplies Expense Totals 85,270,00 85,270.00 Uncarned Fees Utilities Expense Wages Expense Wages Payable

Answer 1

Adjustment	General Journal	Debit	Credit
		$	$
1.	Insurance Expense	8,000
	Prepaid Insurance		8,000
2.	Supplies Expense	3,200
	Office Supplies		3,200
3.	Depreciation Expense	1,500
	Accumulated Depreciation		1,500
4.	Unearned Fees	1,875
	Design Fees Earned		1,875
5.	Wages Expense	800
	Wages Payable		800
6.	Accounts Receivable	20,000
	Design Fees Earned		20,000
7.	Utilities Expense	150
	Accounts Payable		150
8.	Rent Expense	8,500
	Prepaid Rent		8,500
9.	Dividends	2,200
	Cash		2,200

G's Designs Adjusted Trial Balance December 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	8,820
Accounts Receivable	28,000
Prepaid Insurance	8,000
Prepaid Rent	8,500
Office Supplies	1,300
Equipment	24,000
Accumulated Depreciation		1,500
Accounts Payable		9,920
Wages Payable		800
Unearned Fees		5,625
Common Stock		60,000
Dividends	2,200
Design Fees Earned		29,875
Wages Expense	4,800
Insurance Expense	8,000
Rent Expense	8,500
Depreciation Expense	1,500
Supplies Expense	3,200
Utilities Expense	900
Totals	$ 107,720	$ 107,720

G's Designs Income Statement For the year ended December 31, 2019
Design Fees Earned		$ 29,875
Operating Expenses
Wages Expense	4,800
Insurance Expense	8,000
Rent Expense	8,500
Depreciation Expense	1,500
Supplies Expense	3,200
Utilities Expense	900
Total Operating Expenses		26,900
Net Income		$ 2,975

G's Designs Statement of Retained Earnings For the year ended December 31, 2019
Balance, July 1	$ 0
Net income for the period	2,975
Less: Dividends	(2,200)
Balance, December 31	$ 775

G's Designs Balance Sheet December 31, 2019
Assets
Cash		$ 8,820
Accounts Receivable		28,000
Prepaid Insurance		8,000
Prepaid Rent		8,500
Office Supplies		1,300
Equipment	$ 24,000
Less: Accumulated Depreciation	(1,500)	22,500
Total Assets		$ 77,120
Liabilities
Accounts Payable		9,920
Wages Payable		800
Unearned Fees		5,625
Total Liabilities		16,345
Stockholders Equity
Common Stock	60,000
Retained Earnings	775
Total Stockholders Equity		60,775
Total Liabilities and Stockholders Equity		$ 77,120

Date	General Journal	Debit	Credit
		$	$
Dec 31, 2019	Design Fees Earned	29,875
	Retained Earnings		29,875
	To close revenue account
Dec 31, 2019	Retained Earnings	26,900
	Wages Expense		4,800
	Insurance Expense		8,000
	Rent Expense		8,500
	Supplies Expense		3,200
	Depreciation Expense		1,500
	Utilities Expense		900
	To close expense accounts
Dec 31, 2019	Retained Earnings	2,200
	Dividends		2,200
	To close dividends account