Journalizing purchase and sale transactions—perpetual inventory; making closing entries, a...

Journalizing purchase and sale transactions—perpetual inventory; making closing entries, and preparing financial statements

Shine King Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. During December, Shine King completed the following transactions:

Requirements

1. Add any needed accounts to Shine King’s existing chart of accounts.

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2. Journalize and post the December transactions. Key all items by date. Compute each account balance, and denote the balance as Bal.

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3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits in the ledger.

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4. Prepare the December multi-step income statement, statement of owner’s equity, and balance sheet for the company.

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5. Journalize the December closing entries for the company.