Chapter 5, Problem P5.50CP2

To determine

Concept introduction:

Steps in Accounting cycle: Accounting cycle is the series of steps of accounting process which processes transactions into financial statements. The steps of accounting cycle are as follows:

1. Collecting transactions and events

2. Recording journal entries for transactions and events

3. Posting the journal entries into ledgers

4. Preparing unadjusted trial balance from ledger balances

5. Recording adjusting entries

6. Posting adjusting entries into ledgers and Preparing adjusted trial balance

7. Preparing financial statements; Income statement, balances sheet, statement of owner’s equity and Cash flow statements.

8. Preparing Closing entries to close temporary accounts.

9. Preparing post closing trial balance

10. Recording reversing journal entries (Optional)

Requirement-1:

To prepare: The journal entries and posting to T accounts for the given transactions for the month of January 2019

To determine

Requirement -2:

To prepare: Adjusting entries and their posting into T accounts for the month of January 2019

To determine

Requirement -3:

To prepare: Single step Income statement for the month of January 2019

To determine

Requirement -4:

To prepare: Closing entries, posting of closing entries in T accounts and Post closing trial balance

To determine

Requirement -6:

To calculate: The Gross Profit percentage for the month of January 2019