A dog training business began on December 1. The following transactions occurred during its first month.

December 1	Receives $20,000 cash as an owner investment in exchange for common stock.
December 2	Pays $6,000 cash for equipment.
December 3	Pays $3,600 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1.
December 4	Pays $1,000 cash for December rent expense.
December 7	Provides all-day training services for a large group and immediately collects $1,100 cash.
December 8	Pays $200 cash in wages for part-time help.
December 9	Provides training services for $2,400 and rents training equipment for $600. The customer is billed $3,000 for these services.
December 19	Receives $3,000 cash from the customer billed on Dec. 9.
December 20	Purchases $2,000 of supplies on credit from a supplier.
December 23	Receives $1,600 cash in advance of providing a 4-week training service to a customer.
December 29	Pays $1,300 cash as a partial payment toward the accounts payable of Dec. 20.
December 30	Distributed a $500 cash dividend to the owner.

Information for month-end adjustments follows:

December 31	One month of the 12-month, $3,600 insurance policy is expired by December 31. This leaves $3,300 not yet expired.
December 31	A physical count of supplies on December 31 shows that only $1,200 of supplies remain of the $2,000 supplies purchased.
December 31	The $6,000 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,000 net cost over 60 months. On December 31, 1 month of depreciation must be recorded.
December 31	The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,600 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded.
December 31	On December 31, wages of $600 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded.
December 31	The business agreed to provide 6 weeks of training services to a customer for a fee of $4,200, or $700 per week. The customer agrees to pay the full $4,200 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided.

1. requirements

General Journal tab -Prepare journal entries for the first month of operations. Prepare any necessary adjusting and closing entries for the current month.

General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

Trial Balance tab - You may view theunadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.

Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. Theunadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Statement ofRetained Earnings tab -Theunadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. Theunadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.

2. Prepare the required journal entries, adjusting entries, and closing entries.

No	Date	Account Title	Debit	Credit
1	December 01	Cashselected answer correct	20,000selected answer correct	not attempted
		Common stockselected answer correct	not attempted	20,000selected answer correct
2	December 02	Equipmentselected answer correct	6,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	6,000selected answer correct
3	December 03	Prepaid insuranceselected answer correct	3,600selected answer correct	not attempted
		Cashselected answer correct	not attempted	3,600selected answer correct
4	December 04	Rent expenseselected answer correct	1,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	1,000selected answer correct
5	December 07	Cashselected answer correct	1,100selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	1,100selected answer correct
6	December 08	Wages expenseselected answer correct	200selected answer correct	not attempted
		Cashselected answer correct	not attempted	200selected answer correct
7	December 09	Accounts receivableselected answer correct	3,000selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	2,400selected answer correct
		Rental revenueselected answer correct	not attempted	600selected answer correct
8	December 19	Cashselected answer correct	3,000selected answer correct	not attempted
		Accounts receivableselected answer correct	not attempted	3,000selected answer correct
9	December 20	Suppliesselected answer correct	2,000selected answer correct	not attempted
		Services revenueselected answer incorrect	not attempted	2,000selected answer correct
10	December 23	Cashselected answer correct	1,600selected answer correct	not attempted
		Unearned revenueselected answer correct	not attempted	1,600selected answer correct
11	December 29	Accounts payableselected answer correct	1,300selected answer correct	not attempted
		Cashselected answer correct	not attempted	1,300selected answer correct
12	December 30	Dividendsselected answer correct	500selected answer correct	not attempted
		Cashselected answer correct	not attempted	500selected answer correct
13	December 31	Insurance expenseselected answer correct	300selected answer correct	not attempted
		Prepaid insuranceselected answer correct	not attempted	300selected answer correct
14	December 31	Supplies expenseselected answer correct	800selected answer correct	not attempted
		Suppliesselected answer correct	not attempted	800selected answer correct
15	December 31	Depreciation expense - Equipmentselected answer correct	100selected answer correct	not attempted
		Accumulated depreciation - Equipmentselected answer correct	not attempted	100selected answer correct
16	December 31	Unearned revenueselected answer correct	400selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	400selected answer correct
17	December 31	Wages expenseselected answer correct	600selected answer correct	not attempted
		Wages payableselected answer correct	not attempted	600selected answer correct
18	December 31	Accounts receivableselected answer correct	1,400selected answer correct	not attempted
		Services revenueselected answer correct	not attempted	1,400selected answer correct
19	December 31	Services revenueselected answer correct	not attempted	not attempted
		Rental revenueselected answer correct	not attempted	not attempted
		Income summaryselected answer correct	not attempted	not attempted
20	December 31	Income summaryselected answer correct	2,600selected answer incorrect	not attempted
		Depreciation expense - Equipmentselected answer correct	not attempted	100selected answer correct
		Wages expenseselected answer correct	not attempted	800selected answer correct
		Insurance expenseselected answer correct	not attempted	300selected answer correct
		Rent expenseselected answer correct	not attempted	600selected answer incorrect
		Supplies expenseselected answer correct	not attempted	800selected answer correct
21	December 31	Income summaryselected answer correct	not attempted	not attempted
		Retained earningsselected answer correct	not attempted	not attempted
22	December 31	Retained earningsselected answer correct	500selected answer correct	not attempted
		Dividendsselected answer correct	not attempted	500selected answer correct

3. Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

Unadjusted Adjusted Post-closing

Post-closing

General Ledger Account
Cash No. Date Debit Credit Balance December 01 0 1 December 01 20,000 20,000 2 December 02 6,000 14,000 3 December 03 3,600 10,400 4 December 04 1,000 9,400 5 December 07 1,100 10,500 6 December 08 200 10,300 8 December 19 3,000 13,300 10 December 23 1,600 14,900 11 December 29 1,300 13,600 12 December 30 500 13,100		Accounts receivable No. Date Debit Credit Balance December 01 0 7 December 09 3,000 3,000 8 December 19 3,000 0 18 December 31 1,400 1,400
Supplies No. Date Debit Credit Balance December 01 0 9 December 20 2,000 2,000 14 December 31 800 1,200		Prepaid insurance No. Date Debit Credit Balance December 01 0 3 December 03 3,600 3,600 13 December 31 300 3,300
Equipment No. Date Debit Credit Balance December 01 0 2 December 02 6,000 6,000		Accumulated depreciation - Equipment No. Date Debit Credit Balance December 01 0 15 December 31 100 100
Accounts payable No. Date Debit Credit Balance December 01 0 11 December 29 1,300 (1,300)		Wages payable No. Date Debit Credit Balance December 01 0 17 December 31 600 600
Unearned revenue No. Date Debit Credit Balance December 01 0 10 December 23 1,600 1,600 16 December 31 400 1,200		Common stock No. Date Debit Credit Balance December 01 0 1 December 01 20,000 20,000
Retained earnings No. Date Debit Credit Balance December 01 0 22 December 31 500 (500)		Dividends No. Date Debit Credit Balance December 01 0 12 December 30 500 500 22 December 31 500 0
Services revenue No. Date Debit Credit Balance December 01 0 5 December 07 1,100 1,100 7 December 09 2,400 3,500 9 December 20 2,000 5,500 16 December 31 400 5,900 18 December 31 1,400 7,300		Rental revenue No. Date Debit Credit Balance December 01 0 7 December 09 600 600
Depreciation expense - Equipment No. Date Debit Credit Balance December 01 0 15 December 31 100 100 20 December 31 100 0		Wages expense No. Date Debit Credit Balance December 01 0 6 December 08 200 200 17 December 31 600 800 20 December 31 800 0
Insurance expense No. Date Debit Credit Balance December 01 0 13 December 31 300 300 20 December 31 300 0		Rent expense No. Date Debit Credit Balance December 01 0 4 December 04 1,000 1,000 20 December 31 600 400
Supplies expense No. Date Debit Credit Balance December 01 0 14 December 31 800 800 20 December 31 800 0		Income summary No. Date Debit Credit Balance December 01 0 20 December 31 2,600 (2,600)

4. You may view either theunadjusted, adjusted, or post-closing trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs.

Unadjusted Adjusted Post-closing

Post-closing

Trial Balance
December 31, 2023
Account Title	Debit	Credit
Cash	13,100
Accounts receivable	1,400
Supplies	1,200
Prepaid insurance	3,300
Equipment	6,000
Accumulated depreciation - Equipment		100
Accounts payable	1,300
Wages payable		600
Unearned revenue		1,200
Common stock		20,000
Retained earnings	500
Services revenue		7,300
Rental revenue		600
Rent expense	400
Income summary	2,600
Total	29,800	29,800

5. Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.

Unadjusted Adjusted Post-closing

Post-closing

Income Statement For Month Ended December 31 Revenues Services revenueselected answer correct $7,300not attempted Accumulated depreciation - Equipmentselected answer incorrect $100not attempted not attempted 0not attempted Total revenues $7,400 Expenses Rent expenseselected answer correct 400not attempted Wages expenseselected answer correct 0not attempted Supplies expenseselected answer correct 0not attempted Insurance expenseselected answer correct 0not attempted Depreciation expense - Equipmentselected answer correct 0not attempted not attempted 0not attempted Total expenses 400 Net income $7,000

6. heunadjusted or adjusted balances will appear for each account, based on your selection. (Selecting Post-Closing will only display ending balance.)

Unadjusted Adjusted Post-closing

Post-closing

	Statement of Retained Earnings For Month Ended December 31 Retained earnings, December 1 $0 7,000 7,000 Retained earnings, December 31 $7,000

7. Use the drop-downs to select the accounts properly included on the balance sheet. Theunadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.

Unadjusted Adjusted Post-closing

Post-closing

Balance Sheet December 31 ASSETS Current assets Cashselected answer correct $13,100not attempted Accounts receivableselected answer correct 1,400not attempted Suppliesselected answer correct 1,200not attempted Prepaid insuranceselected answer correct 3,300not attempted not attempted 0not attempted Total current assets $19,000 Plant assets Equipmentselected answer correct 6,000 Accumulated depreciation - Equipmentselected answer correct (100) Equipment, net 5,900 Total assets $24,900 LIABILITIES Current liabilities Accounts payableselected answer correct $(1,300)not attempted Wages payableselected answer correct $600not attempted Unearned revenueselected answer correct $1,200not attempted not attempted 0not attempted Total liabilities $500 EQUITY Common stockselected answer correct 20,000not attempted Retained earningsselected answer correct 7,000not attempted Total equity 27,000 Total liabilities and equity $27,500

8. Begin by selecting "Post-closing" from the drop-down below. Then, for each account, use the drop-down to indicate whether the account is included on the post-closing trial balance. Based on your decisions, the post-closing trial balance will be created. Compare your results with the Trial Balance tab.

Unadjusted Adjusted Post-closing

Post-closing

Included on Post-closing trial balance? Type of Account Post-closing Trial Balance Account Debit Credit Cash Yesselected answer correct Permanent 13,100 Accounts receivable Yesselected answer correct Permanent 1,400 Supplies Yesselected answer correct Permanent 1,200 Prepaid insurance Yesselected answer correct Permanent 3,300 Equipment Yesselected answer correct Permanent 6,000 Accumulated depreciation - Equipment Yesselected answer correct Permanent 100 Accounts payable Yesselected answer correct Permanent (1,300) Wages payable Yesselected answer correct Permanent 600 Unearned revenue Yesselected answer correct Permanent 1,200 Common stock Yesselected answer correct Permanent 20,000 Retained earnings Yesselected answer correct Permanent 7,000 Dividends Noselected answer correct Temporary Services revenue Noselected answer correct Temporary Rental revenue Noselected answer correct Temporary Depreciation expenseEquipment Noselected answer correct Temporary Wages expense Noselected answer correct Temporary Insurance expense Noselected answer correct Temporary Rent expense Noselected answer correct Temporary Supplies expense Noselected answer correct Temporary Totals $25,000 $27,600