Leonard Matson completed these transactions during December of the current year. Dec
1 Began a financial services practice by investing $15,000
cash and office equipment having a $5,000 value.
2 Purchased $1,200 of office equipment on credit
3 Purchased $300 of office supplies on credit
4 Completed work for a dient and immediately received a
Payment of $900 cash
8 Completed work for Acme Loan Co. on credit, $1,700.
10 Paid for the supplies purchased on credit on December 3.
14 Paid for the annual $960 premium on an insurance policy.
18 Received payment in full from Acme Loan Co. for the work
Completed on December 8,
27 Leonard withdrew $650 cash from the practice to pay
personal expenses
30 Paid $175 cash for the December utility bills,
30 Received $2,000 from a dient for financial services to be rendered
next year.
1. Prepare general journal entries to record these transactions (30 points)
2. Prepare general ledger accounts (30 points)
3. Prepare a trial balance (10 points)
4. Prepare an income statement (5 points)
5. Prepare statement of owner's equity (10 points)
6. Prepare a balance sheet (15 points)