Using the data provided, perform the steps below to complete the final project.
On December 1, 2019, SoccerBox Inc. started operations. The following transactions occurred during December 2019.
NOTE: There are no beginning balances-this is a new company.
Randol Espy invested $80,000 cash in the company for common stock.
SoccerBox purchased soccer equipment for $20,000 cash.
SoccerBox rented an old warehouse for $30,000 cash for the first year’s (December 2019-November 2020) rent.
SoccerBox purchased $500 of office supplies with cash.
SoccerBox paid $12,000 cash for an annual insurance policy.
SoccerBox paid $4,000 cash for the first payroll earned by its employees.
SoccerBox received $85,000 cash from soccer fees paid by parents for a private youth soccer lesson.
SoccerBox paid $4,000 cash for 2 weeks’ salaries earned by its employees.
SoccerBox paid $200 cash for minor repairs to its soccer equipment.
SoccerBox paid $150 cash for this month’s telephone bill.
Dividends of $1,000 cash were paid by SoccerBox to its current shareholders.
Using this spreadsheet and the information above, complete the following:
- Record the journal entries that occurred during the month of December.
- Prepare an unadjusted trial balance.
- Create adjusting journal entries at the end of the year (December 31) based on the following adjustment data:
- One month’s insurance coverage has expired (refer to the December 10 entry).
- The company occupied the warehouse space for the month of December (refer to the December 2 entry).
- At the end of the month, $100 worth of office supplies are still available (refer to the December 3 entry).
- This month’s depreciation on the soccer equipment is $250.
- Employees earned $300 of unpaid and unrecorded salaries as of month-end.
- Prepare an adjusted trial balance.
- Prepare an income statement, a statement of retained earnings, and a classified balance sheet as of December 31, 2019