J & L Accounting, Inc financial statements Balance sheet Income statement retained earnings trial balance Answer

The following financial statements are provided from the prior accounting period for J & L Accounting, Inc.:a) Post-closing trial balanceb) Balance sheetc) Income statementd) Statement of retained earningsJ & L Accounting, Inc.Post-Closing Trial BalanceDecember 31, 2012BALANCEACCOUNT TITLE DEBIT CREDITCash, Business Checking 20,500.00Accounts ReceivablePrepaid RentVehicles 48,000.00Accumulated Depreciation, Vehicles 12,000.00Equipment 3,600.00Accumulated Depreciation, Equipment 600.00Accounts PayableCommon Stock 38,000.00Retained Earnings 21,500.00DividendsService RevenueAdvertising ExpenseRent ExpenseOffice Supplies ExpenseTelephone ExpenseUtilities ExpenseDepreciation ExpenseTOTALS 72,100.00 72,100.00J & L Accounting, Inc.Balance SheetAs of December 31, 2012ASSETSCash, Business Checking 20,500.00Accounts Receivable 0.00Prepaid Rent 0.00Vehicles 48,000.00Less: Accumulated Depreciation, Vehicles 12,000.00 36,000.00Equipment 3,600.00Less: Accumulated Depreciation, Equipment 600.00 3,000.00TOTAL ASSETS 59,500.00LIABILITIESAccounts Payable 0.00TOTAL LIABILITIES 0.00STOCKHOLDERS’ EQUITYCommon Stock 38,000.00Retained Earnings 21,500.00TOTAL STOCKHOLDERS’ EQUITY 59,500.00TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 59,500.00Business, 4 Accounting, and YouJ & L Accounting, Inc.Income StatementFor the Month Ending December 31, 2012REVENUESService Revenue 10,275.00EXPENSESAdvertising Expense 2,300.00Rent Expense 1,000.00Office Supplies Expense 300.00Telephone Expense 750.00Utilities Expense 3,200.00Depreciation Expense 1,100.00TOTAL EXPENSES 8,650.00NET INCOME 1,625.00J & L Accounting, Inc.Statement of Retained EarningsFor the Month Ending December 31, 2012Retained Earnings, December 1, 2012 19,875.00Add: Net Income 1,625.00Subtotal 21,500.00Less: Dividends 0.00Retained Earnings, December 31, 2012 21,500.00Business, 6 Accounting, and YouGraded Project 71) Using the following blank forms (make as many copies as necessary), set up the general ledger accounts for the general ledger and insert the beginning balances for the accounts from the post-closing trial balance. The balances from the post-closing trial balance become the beginning balances of the accounts for the next account period. DATE ITEMPOSTREF. DEBIT CREDITBALANCEDEBIT CREDITBusiness, 8 Accounting, and YouDATE ITEMPOSTREF. DEBIT CREDITBALANCEDEBIT CREDIT2) Journalize the following transactions in the general journal using the following blank form (make as many copies as needed). When making journal entries, each individual journal entry’s debits should equal its credits. (The amount for a journal entry can be incorrect or the entry can be incorrect. However, the debits still have to equal the credits even though the entry is incorrect. If the journal entry is incorrect, it can be corrected later when making adjusting/correcting journal entries. For example, if the amount is supposed to be $1,100, and for some reason the amount of $1,010 is recorded, this is acceptable—although incorrect, it can be corrected later.) The total of the debits must always equal the total of the credits for each journal entry—always. This is a fundamental GAAP that cannot be violated.a. On January 1, 2013, a payment in cash for $12,000 is made for prepaying rent for the entire year 2013. b. On January 4, 2013, accounting services are performed and payment is received in cash for the amount of $1,900.c. On January 9, 2013, a payment in cash for advertising is made in the amount of $850. d. On January 10, 2013, office supplies are purchased in the amount of $75 with cash.e. On January 14, 2013, accounting services are performed and payment is received in cash for the amount of $2,725.f. On January 20, 2013, the telephone bill for the amount of $660 is received and paid with cash.g. On January 20, 2013, the utilities bill for $2,925 is received. The bill won’t be paid until it is due onFebruary 15, 2013.h. On January 27, 2013, accounting services are performed on account in the amount of $3,750.i. On January 28, 2013, a payment in cash for $1,500 is made for a bill from an advertising agency.3) Post the general journal entries from the journal to the corresponding general ledger accounts, paying particularattention to the posting being made (debit or credit). Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account. Posting from the journal to the general ledger isnothing more than rearranging the information. If the debits equal the credits for a particular journal entry andthe information is posted correctly, then the total of the debits should equal the total of the credits in the general ledger.4) Calculate the balances in the general ledger accounts.5) Create an unadjusted trial balance from the balances in the general ledger accounts.6) Journalize the following adjusting journal entries in the general journal, being sure that the debits equal the credits:a. Calculate and make the adjustment for the amount of pre-paid rent that has been used. b. Make an adjusting journal entry in the amount of $1,000 for depreciation of the vehicles.c. Make an adjusting journal entry in the amount of $100 for depreciation of the equipment.7) Post the adjusting journal entries to the respective general ledger accounts, again being sure that the postingsare to the correct debit or credit side and that the Post Ref. column is used.8) Calculate the new balances in the general ledger accounts.9) Create the income statement for J & L Accounting, Inc.using the information from the adjusted trial balance.10) Create the closing journal entries in the general journal to close the revenue, expense, and dividend accounts to the etained earnings account, paying attention to debits equaling credits.11) Post the closing journal entries to the espective general ledger accounts.12) Calculate the balances in the general ledger accounts.13) Create a post-closing trial balance from the balances in the general ledger accounts14) Create the balance sheet for J & L Accounting, Inc. using the nformation from the post-closing trial balance.15) Create the statement of retained earnings for J & L Accounting, Inc. using the ending balance from the statement of retained earnings from the prior period and the net income from the income statement for the January accounting period.