Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 1

Journalizing purchase and sale transactions-perpetual inventory; making closing entries, and preparing financial statements
Shine King Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. During December, Shine King completed the following transactions:

Requirements
1. Add any needed accounts to Shine King's existing chart of accounts.
2. Journalize and post the December transactions. Key all items by date. Compute each account balance, and denote the balance as Bal.
3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits in the ledger.
4. Prepare the December multi-step income statement, statement of retained earnings, and balance sheet for the company.
5. Journalize the December closing entries for the company.