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(Solution document) Jan Haley owns and operates Haley's Dry Cleaners. The following occurred during December: o On December 1, Haley prepaid rent on her store for...


Jan Haley owns and operates Haley's Dry Cleaners. The following occurred during December: 

o  On December 1, Haley prepaid rent on her store for December and January with $2,000 cash.

o  On December 1, Haley purchased insurance with cash in the amount of $2,400 that will last six months.

o  Haley paid $900 of her accounts payable balance.

o  Haley paid off all of her salaries payable balance.

o  Haley purchased supplies on account in the amount of $2,400.

o  Haley paid a salary to her assistant of $1,000 in cash for work done in the first two weeks of December.

o  Haley dry-cleaned clothes for customers on account in the amount of $8,000.

o  Haley collected $6,300 of her accounts receivable balance.

o  Haley paid tax of $750 in cash.


Required:

 A. Prepare the journal entry for each transaction.

B. Prepare necessary T-accounts. Numbers already under the accounts represent the prior balance in that account.

Figure 5.13 Opening T-Account Balances

C. Prepare trial balance dated 12/31/XX.

 D. Make the following adjusting entries for the month of December and post them to the T-accounts: j. Rent expense.

k. Insurance expense. l. Haley owes her assistant $1,000 for work done during the last two weeks of December. 140 ? FINANCIAL ACCOUNTING m. An inventory of supplies shows $400 in supplies remaining on December 31. E. Prepare adjusted trial balance dated 12/31/XX. F. Prepare income statement, statement of retained earnings, and balance sheet for the month ending December 31, 20XX.

 







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