Kate Sue is the owner of Frame Inc. See entries for the month of December 31, 2008

Dec 1 Laura invested $2000 in her business bank account
3 Paid $300 for two months rent in advance for an office
5 Received $860 for sales for which only 795 is earned
9 Purchase framing supplies for $200 in cash
12 Purchase $400 of equipment on credit, making a 25% down payment
18 Made partial payment of $50 on equipment purchase on May 12
27 Paid a utility of $40
28 Received drawings of $100

Adjusting entries:

1. After inventory count, it was revealed that framing supplies was $50
2. One month rent had expired
3. The depreciation for the month is estimated to be $12

a. Do T-accounts
b. Prepare trial balance
c. Prepare adjusting entries and prepare adjusted trial balance
d. Prepare Income statement, owners equity Statement, Cash Flow Statement and balance Sheet

Do your work first.

Remember for each entry you will have a debit and a credit journal entry.

Your debits should equal your credits.

Thank you for taking the time to copy your homework to AMHD.
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