question for the past several years aaron jones has operated aconsulting business fr 4304154


For the past several years, Aaron Jones has operated aconsulting business from his home on a part-time basis. As ofDecember 1, 20X1, Aaron decided to move to rented quarters andincorporate his business as Progress Consulting Inc. ProgressConsulting entered into the following transactions during December:1st Aaron Jones invested the following assets in the business:cash, $50,000; supplies, $10,000; and office equipment, $30,000.Mr. Jones received stock in an amount equal to his investment inthe corporation. 2nd Paid $9,000 for rent for December 20X1 throughFebruary 28, 20X2. 3rd Paid $12,000 for a one year premium onproperty and casualty insurance. The policy covers the periodDecember 1, 20X1 to November 30, 20X2. 4th Received $16,000 cashfrom a client as an advance payment for services to be performed inthe future. 5th Purchased additional office equipment on accountfrom Payne Company for $10,000. 10th Paid $7,500 for a newspaperadvertisement that ran in today’s paper. 11th Paid Payne Company$3,000 for part of the debt incurred on December 5. 12th Billedclients for services performed on account, $5,800. 17th Receivedcash payment from client for services performed on this date,$14,000. 18th Paid $6,000 for supplies. 20th Billed clients forservices performed on account, $15,000. 24th Received cash paymentfrom client for services performed on this date, $2,000. 25thReceived cash from clients as payment on account, $3,000. 30th Paid$750 for utilities for December. 31st Paid cash dividend of$5,000

Journalize each of the above transactions.

Post theses Journal entries tothe ledger.Prepare anunadjusted trial balance as of December 31,20X1.Journalize and post the adjustingentries using the following information:

a. Insurance expired during December is $1,000 Supplies on hand on December 31 are valued at$4,500. Depreciation ofoffice equipment for December is $1,000. Rent expired during December is $3,000.Determined that the company hadperformed $4,000 of the services for which it was paid in advanceon December 4th. f. Employeewages were left unpaid in the amount of $1,700 for the month ofDecember. The employees will be paid the first week inJanuary. Services wereperformed for a client on December 31 in the amount of $2,100. Theclient did not pay, nor has the client been billed. (hint: thistransaction has not yet been journalized.) Prepare an adjusted trial balance.Using the adjusted trial balance,prepare an income statement, a statement of retained

earnings, and a balance sheet. Journalize and post the closing entries.Prepare a post-closing trialbalance.


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Cathy, CS.