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The T-accounts, along with their beginning balances have been opened for you. Post the December transactions to the general ledger accounts. (Note that customer and vendor names are not used for the General Ledger accounts.) Compute each account balance, and denote the balance as Bal. (For any accounts with a zero balance after closing, select a "Bal." reference and enter a "0" on the normal side of the account.) (Click the icon to view the journal entries you prepared above.) Cash Bal. 50,650 Accounts Payable Service Revenue 2,200 Bal. 0 Bal. Accounts Receivable Unearned Revenue Sales Revenue Bal. 900 17,250 Bal. 0 Bal. Merchandise Inventory Salaries Payable Sales Returns and Allowances Bal. 0 Bal. Bal. Cleaning Supplies Interest Payable Sales Discounts Bal. 50 100 Bal. Bal. Prepaid Rent Notes Payable (Long-Term) Cost of Goods Sold Bal. 3,600 30,000 Bal. Bal. Prepaid Insurance Hayman, Capital Sales Commissions Expense Bal. 4,950 27,710 Bal. Bal. Equipment Bal. 5,400 Truck Bal. 12,000 Accum. Depr.-Equip. and Truck 290 Bal. Hayman, Withdrawale Utilities Expense Bal. Bal. Income Summary Depreciation Expense 0 Bal. Bal. Salaries Expense Bal. Bal. Bal. Bal. Insurance Expense 0 Rent Expense Interest Expense Reference Date Accounts and Explanation Debit Credit Dec. 2 Merchandise Inventory 8,000 Accounts Payable-Gleam Cube 8,000 Purchased inventory on account. Dec. 5 Merchandise Inventory 11,000 Accounts Payable-Dirt Buster 11,000 Purchased inventory on account. Dec. 7 Accounts Payable-Gleam Cube Merchandise Inventory 5,000 5,000 Returned inventory to seller (vendor). Dec. 9 Accounts Payable-Dirt Buster 11,000 Merchandise Inventory 540 Cash 10,460 Paid within discount period. Dec. 11 Accounts Receivable-Messy Maids 5,250 Sales Revenue 5,250 Sale on account. Dec. 11 Cost of Goods Sold Merchandise Inventory 2,500 2,500 Recorded the cost of goods sold. Dec. 12 Accounts Payable-Gleam Cube 3,000 Merchandise Inventory 90 Cash 2,910 Paid within discount period. Dec. 15 Sales Returns and Allowances 420 Accounts Receivable-Messy Maids 420 Received returned goods. Dec. 15 Merchandise Inventory Cost of Goods Sold 200 200 Placed goods back in inventory. Print Done Reference Sales Revenue 5,250 I Sale on account. Dec. 11 Cost of Goods Sold Merchandise Inventory 2,500 2,500 Recorded the cost of goods sold. Dec. 12 Accounts Payable-Gleam Cube 3,000 Merchandise Inventory 90 Cash 2,910 Paid within discount period. Dec. 15 Sales Returns and Allowances Accounts Receivable-Messy Maids 420 420 Received returned goods. Dec. 15 Merchandise Inventory Cost of Goods Sold 200 200 Placed goods back in inventory. Dec. 21 Cash 4,588 Sales Discounts 242 Accounts Receivable-Messy Maids 4,830 Paid within discount period. Dec. 28 Cash Sales Revenue 3,000 3,000 Cash sale. Dec. 28 Cost of Goods Sold 1,133 Merchandise Inventory 1,133 Recorded the cost of goods sold. Dec. 29 Utilities Expense 400 Cash 400 Paid cash expenses. Dec. 30 Sales Commissions Expense 304 304 Cash Paid cash expenses. Print Done Adjustment information More info Reference I able Nov. 2 The business paid $4,800 to Picture Perfect Properties for November through February rent. (Debit Prepaid Rent) 3 Paid $5,400 for a business insurance policy for the term November 1, 2017 through October 31, 2018. (Debit Prepaid Insurance) 16 Received $18,000 for a 1-year contract beginning November 16 for cleaning services to be provided. Contract begins November 16, 2017, and ends November 15, 2018. (Credit Unearned Revenue) 20 Borrowed $30,000 from bank with interest rate of 12% per year. Requirements 1. Journalize and post the December transactions. Compute each account balance, and denote the balance as Bal. Identify each accounts payable and accounts receivable with the vendor or customer name. 2. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. Compute each account balance, and denote the balance as Bal. After posting all adjusting entries, prove the equality of debits and credits in the ledger. 3. Prepare the December multi-step income statement, statement of owner's equity, and classified balance sheet for the company. List Service Revenue under gross profit, and ignore classifying the expenses as selling and administrative. 4. Journalize the December closing entries for the company. 5. Compute the gross profit percentage for the company. Dec. 2 Purchased 800 units of inventory for $8,000 on account from Gleam Cube, Co. on terms, 3/10, n/20. 5 Purchased 1,000 units of inventory from Dirt Buster on account with terms 5/10, n/30. The total invoice was for $11,000, which included a $200 freight charge. 7 Returned 500 units of inventory to Gleam Cube from the December 2 purchase (cost $5,000). 9 Paid Dirt Buster. 11 Sold 250 units of goods to Messy Maids for $5,250 on account with terms 5/10, n/30. Glam Gleam's cost of the goods was $2,500. 12 Paid Gleam Cube. 15 Received 20 units with a retail price of $420 of goods back from customer Messy Maids. The goods cost Glam Gleam $200. 21 Received payment from Messy Maids, settling the amount due in full. 28 Sold 120 units of goods to Ashlyn, Inc. for cash of $3,000 (cost $1,133). 29 Paid cash for utilities of $400. 30 Paid cash for Sales Commission Expense of $304. 31 Recorded the following adjusting entries: a. Physical count of inventory on December 31 showed 900 units of goods on hand, $9,414 b. Depreciation, $290 c. Accrued salaries expense of $700 d. Prepared all other adjustments necessary for December (Hint: You will need to review the adjustment information from November to determine the remaining adjustments). Assume the cleaning supplies left at December 31 are $50. Account Title Cash Glam Gleam Cleaning Post-Closing Trial Balance November 30, 2017 Debit Balance $ 50,650 Credit Accounts Receivable 900 Cleaning Supplies 50 Prepaid Rent 3,600 Prepaid Insurance 4,950 Equipment 5,400 Truck 12,000 Accumulated Depreciation-Equipment and Truck $ 290 2,200 17,250 100 30,000 27,710 $ 77,550 $ 77,550 Accounts Payable Unearned Revenue Interest Payable Notes Payable (Long-term) Hayman, Capital Total Print Done

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