Reference no: EM132484099

Arkan Inc. (a sole proprietorship) had the following transactions during the first month of business. Prepare the appropriate journal entry for each of the listed transactions

1. Cash
2. Equity
3. Prepaid Rent
4. Retained Earning
5. Accounts Receivable
6. Dividends
7. Supplies
8. Service Revenue
9. Equipment
10. Rent Expense
11. Accumulated Depreciation
12. Supplies Expense
13. Accounts Payable
14. Depreciation Expense
15. Deferred/Unearned Revenue
16. Interest Expense

Aug 1: Owner invested $12,000 cash and $2,400 of equipment in the business (10-year useful life on equipment, no salvage value, straight-line depreciation

Aug 7: Purchased Supplies on account for $550

Aug 9: Signed a contract with Hog Corp, for $1,500 of services to be performance in September

Aug 12: Performed services for clients, for which $1,300 was collected in cash and $600 was billed to the clients.

Aug 22: Received $3,300 advance payment for services

Aug 28: Paid cash dividend of $200

Aug 31: Paid September rent of $600 for new office space

Aug 31: Counted supplies and determined that only $250 of the supplies purchased on Aug 7 are still on hand.

Prepare the any other necessary August month end adjusting entries

Based on your journal entries above, prepare each of the following items:

Question 1. Prepare the August month-end Adjusted Trial Balance on the template provided

Question 2. Indicate the nominal accounts with an 'X' in the column labeled "Nominal Acct."

Question 3. Indicate the financial statements on which the account is included in the column labeled "Statements" (BS, IS, RE)

Question 4. Prepare the August month-end closing entries