### Journal Entry and Posting to T-AccountsIn this image, we see a screenshot from an educational accounting software designed to assist users in preparing closing entries and posting them to T-accounts.#### Key Components of the Interface:1. **Tabs at the Top:** - **Req 1 to 3: Req 4, Req 5, Req 6, Req 7A, Req 7B, Req 8, T accounts, Req 9**: These tabs indicate different requirements and sections that guide the user through various stages of the accounting process.2. **Instruction Panel:** - **Instruction Text:** "Prepare closing entries, and then post to the T-accounts (on the T-accounts tab)." This underscores the process of preparing closing entries which should subsequently be posted to T-accounts. - **Note:** "If no entry is required for a transaction/event, select 'No journal entry required' in the first account field." This note informs users about how to proceed if a transaction/event does not require a journal entry.3. **Action Buttons:** - **View transaction list** - **View journal entry worksheet** These buttons allow users to view the list of transactions and to access the journal entry worksheet respectively. 4. **Journal Entry Table:** - This table is used to record journal entries and is currently populated as follows: - **No:** 1 - **Transaction:** j- - **General Journal:** Service revenue - **Debit:** (blank field) - **Credit:** (blank field) - The table records the transactions, including the type (Service revenue in this case), and has columns to debit and credit the amounts accordingly.5. **Navigation Buttons:** - **Req 7B**: Navigates to the "Req 7B" section. - **T accounts**: Navigates to the T-accounts section. - **Prev / Next**: These buttons allow users to navigate through multiple pages or entries.#### Description of the Interface Usage:To effectively use this interface, a student would begin by entering the required transaction details into the journal entry table. After entering the transaction details, the student would then use the navigation buttons to post these entries into the T accounts, as instructed by the software. This structured approach helps in understanding the foundational steps of accounting entries and the transfer of these entries to the ### Accounting Transactions Overview#### Trial Balance Summary**Account Title** | **Debits** | **Credits**--- | --- | ---Cash | $28,400 |Accounts receivable | $18,500 |Equipment | $32,000 |Accumulated depreciation | | $9,600Salaries payable | | $10,250Common stock | | $49,500Retained earnings | | $9,550**Total** | $78,900 | $78,900#### Transaction Summary for the Yeara. Provided services totaling $136,000, of which $40,800 was on account and the balance was received in cash.b. Collected on accounts receivable amounting to $27,100.c. Issued shares of common stock in exchange for $16,500 in cash.d. Paid salaries totaling $49,750, of which $10,250 was for salaries payable at the end of the prior year.e. Incurred advertising expense for various items costing $26,800.f. Purchased equipment for $19,000 in cash.g. Paid $3,300 in cash dividends to shareholders.#### Additional Information:h. Accrued salaries at year-end amounted to $995.i. Depreciation for the year on the equipment is $3,200.#### Required Tasks:1. **Prepare a general journal entry** for each of the summary transactions listed. Record beginning balances in the T-accounts (on the T-accounts tab). Post the journal entries to the T-accounts.2. **Prepare adjusting journal entries** and an unadjusted trial balance.3. Using the account balances, **prepare the adjusted trial balance**.4. **Prepare a balance sheet** as of December 31, 2024.5. **Prepare a post-closing trial balance**.#### Detailed Graph and Diagram Explanations:1. **Trial Balance Table**: - The table lists account titles in the first column, followed by debit and credit amounts in the subsequent columns. - The total debits and credits both sum to $78,900, demonstrating that the trial balance is balanced.### Steps for Completion:1. Post initial balances and transactions to the T-accounts.2. Adjust entries according to additional information and trial balance requirements.3. Ensure the integrity of

Closing Entries - Closing entries are required to close the temporary accounts after making…

Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits $ 28,400 18,500 32,000 Credits $ 9,600 10,250 49,500 9,550 $ 78,900 $ 78,900 The following is a summary of the transactions for the year. a. Provided services, $136,000, of which $40,800 was on account and the balance was received in cash. b. Collected on accounts receivable, $27,100. c. Issued shares of common stock in exchange for $16,500 in cash. d. Paid salaries, $49,750 (of which $10,250 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,800. f. Purchased equipment for $19,000 in cash. g. Paid $3,300 in cash dividends to shareholders. Additional information: h. Accrued salaries at year-end amounted to $995. i. Depreciation for the year on the equipment is $3,200. Required: 1 to 3. Prepare a general journal entry for each of the summary transactions listed. Record beginning balances in the T-accounts (on the T-accounts tab). Post the journal entries to the T-accounts. 4. Using the T-account balances, prepare an unadjusted trial balance. 5. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab). 6. Using the adjusted T-account balances, prepare an adjusted trial balance. 7-a. Prepare an income statement for 2024. 7-b. Prepare a balance sheet as of December 31, 2024. 8. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab). 9. Prepare a post-closing trial balance.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q