Accounting cycle

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Accounting Cycle Problem

On January 1, 2022, Mr. Wild formed a corporation to provide services to clients. Information about the first year of operation follows:
Jan. 1 Investors provided $2,100,000 in cash in exchange for stock of The Wild Corporation.
Jan. 1 Purchased equipment in exchange for $430,000 cash and a $1,500,000 note payable at an annual rate of 5%, payable every 6 months.
Jan. 1 Purchased $70,000 of insurance that will cover the next 3 years. This was recorded as prepaid insurance.
Feb. 1 Purchased $10,000 of office supplies on account that will be needed during the upcoming year.
Mar. 15 Paid Salaries of $35,000.
Mar. 31 Billed customers for services in the amount of $325,000.
Apr. 15 Paid the vendor who sold Wild the office supplies on Feb. 1.
Apr. 30 Collected $155,000 on accounts receivable.
June 15 Paid salaries of $40,000.
June 30 Paid $12,000 for employee travel costs.
June 30 Paid $18,000 for a company party.
June 30 Paid the interest due and $180,000 to reduce the balance of the note payable.
July 1 Billed customers for services provided in the amount of $250,000.
Aug 1 Collected $225,000 on accounts receivable.
Aug. 15 Purchased $15,000 of office supplies on account.
Sept. 15 Paid salaries of $65,000.
Sept. 30 Paid $27,000 for a customer appreciation event.
Sept. 30 Paid $49,500 for employee travel costs incurred by staff.
Dec. 1 Collected $92,000 as deposits from customers who contracted for 2023.
Dec. 31 Declared and paid a $50,000 dividend to shareholders.
The Wild Corporation uses the following accounts in it's Chart of Accounts:
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation
Accounts Payable
Interest Payable
Unearned Revenue
Notes Payable
Capital Stock
Retained Earnings
Dividends
Service Revenue
Salaries Expense
Meals & Entertainment Expense
Travel Expense
Insurance Expense
Office Supplies Expense
Interest Expense
Depreciation Expense
Income Summary
COMPLETE THE FOLLOWING:
(a) Journalize the listed transactions.
(b) Post the transactions to the appropriate general ledger accounts.
(c) Prepare a trial balance as of December 31.
(d) Journalize and post adjusting entries based on the following additional information.
There was $8,000 of Office Supplies on hand at year. Purchased $25,000 of supplies on account.
The equipment had 20-year life, with $100,000 salvage value.
At year end, Wild Corp. had provided $85,000 of unbilled services to customers. These services will be billed in early 2023. Declared and paid a $25,000 dividend to shareholders.
(e) Prepare an adjusted trial balance as of December 31.
(f) Prepare an income statement and Statement of Retained Earnings for this fiscal year, and a classified Balance Sheet as of December 31.
(g) Journalize and post closing entries.
(h) Prepare a post-closing trial balance as of December 31.

General Journal

GENERAL JOURNAL                                                                   Page 1
Date Accounts Debit Credit
GENERAL JOURNAL                                                                   Page 2
Date Accounts Debit Credit
GENERAL JOURNAL                                                                   Page 3
Date Accounts Debit Credit
GENERAL JOURNAL                                                                   Page 4
Date Accounts Debit Credit

General Ledger

CASH
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
ACCOUNTS RECEIVABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
-
-
-
OFFICE SUPPLIES
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
-
PREPAID INSURANCE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
EQUIPMENT
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
ACCUMULATED DEPRECIATION
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
ACCOUNTS PAYABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
-
INTEREST PAYABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
UNEARNED REVENUE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
NOTES PAYABLE
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
CAPITAL STOCK
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
RETAINED EARNINGS
Date Description Debit Credit Balance
Jan. 1 Balance forward - - -
-
-
DIVIDENDS
Date Description Debit Credit Balance
-
-
SERVICE REVENUE
Date Description Debit Credit Balance
-
-
-
-
SALARIES EXPENSE
Date Description Debit Credit Balance
-
-
-
-
MEALS & ENTERTAINMENT EXPENSE
Date Description Debit Credit Balance
-
-
-
TRAVEL EXPENSE
Date Description Debit Credit Balance
-
-
-
INSURANCE EXPENSE
Date Description Debit Credit Balance
-
-
OFFICE SUPPLIES EXPENSE
Date Description Debit Credit Balance
-
-
INTEREST EXPENSE
Date Description Debit Credit Balance
-
-
-
DEPRECIATION EXPENSE
Date Description Debit Credit Balance
-
-
INCOME SUMMARY
Date Description Debit Credit Balance
-
-
-

Unadj Trial Balance

THE WILD CORPORATION
Unadjusted Trial Balance
December 31, 2020
Debits Credits
$ - $ -

Adjusting Entries

GENERAL JOURNAL                                                                   Page 5
Date Accounts Debit Credit

Adj Trial Balance

THE WILD CORPORATION
Adjusted Trial Balance
December 31, 2020
Debits Credits
$ - $ -

Financial Statements

THE WILD CORPORATION
Income Statement
For the Year Ending December 31, 2020
Revenues
$ -
Expenses
$ -
-
-
-
-
-
- -
Net income $ -
THE WILD CORPORATION
Statement of Retained Earnings
For the Year Ending December 31, 2020
Beginning retained earnings $ -
Plus: Net income -
$ -
Less: Dividends -
Ending retained earnings $ -
THE WILD CORPORATION
Balance Sheet
December 31, 2020
Assets
Current assets
$ -
-
- $ - 0
Non-current assets
- - 0
Property, plant & equipment
$ -
- -
Total assets $ -
Liabilities
Current liabilities
$ -
-
- $ -
Long-term liabilities
-
Total liabilities $ -
Stockholders' equity
$ -
-
Total stockholders' equity -
Total Liabilities and equity $ -

Closing Entries

GENERAL JOURNAL                                                                   Page 6
Date Accounts Debit Credit

Post-Closing Trial Balance

THE WILD CORPORATION
Post-Closing Trial Balance
December 31, 2020
Debits Credits
$ - $ -
$ - $ -