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Instructions:
a – Prepare the necessary adjusting journal entries on December 31
Instructions:
a – Prepare the necessary adjusting journal entries on December 31, 2022. Also prepare an adjusted trial balance dated December 31, 2022 (20 points).
b- From the adjusted trial balance prepared in part a, prepare an income statement and statement of retained earnings for the year ended December 31, 2022. Also prepare the company’s balance sheet dated December 31, 2022 (20 points).
с. Prepare the necessary year-end closing entries (15 points).
d. Prepare an after-closing trial balance (15 points).
e. Compute the company’s average monthly insurance expense for January through November 2022 (5 points)
f. Compute the company’s average monthly rent expense for January through May 2022 (5 points)
g. If the company purchased all of its office equipment when it first incorporated, for how long has it been in business as of December 31, 2022? (5 points). h.
h. the financial statements prepared in part b., evaluate the company’s (i) profitability, (ii) liquidity, and (iii) solvency. (15 points).
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