Example 4-XYZ Company

The following transactions for XYZ Company in 2021 :

Sept. 1: Mr.A , the owner, invested $70,000 cash and $20,000 of photography equipment in the business.

      05: Paid $2,400 cash for an insurance policy covering the next 24 months.

      09: Services are performed and clients are billed for $15,000.

      15: Purchased office supplies for $1,800. Cash paid $700 and remaining outstanding.

      21: Received $5,000 cash in photography fees earned previously (on 09-September).

      25: The client immediately pays $14,000 for services to be performed at a later date.

     28: The business acquires office equipment. The purchase price is $ 10,000, pays $5,000 cash and signs a note for the balance.

30: Paid office rental for $1,000.

    30: Paid salary expense for $3,000.

 Information for Adjusting Entry:

• Assume depreciation expense of fixed assets for September 2021 is $500.
• Insurance expense per month is $100 according to company policy for prepaid insurance above.
• Assume office supplied used $1,000 during September.
• For the month of September 2021, XYZ Company used a total of $1,000 worth of electricity and water. The company received the bills on Oct 10, 2021.

Required:

 For the month of September 202X, you are required to:

1. Prepare General Journal
2. Prepare General Ledger
3. Prepare Trial Balance
4. Make Adjusting Entry
5. Prepare Adjusted Trial Balance
6. Prepare income statement
7.  Statement of Change in Equity
8. Prepare balance sheet
9. Make closing entry
10. Prepare Post (After) Closing Trial Balance