STEP 2

December 2 Cash 120,000

Emily Cruz, Capital 120,000

2 Rent Expense 5,000

Cash 5,000

3 Equipment 30,000
Cash 30,000

4 Furniture 36,000
Accounts Payable 36,000

5 Supplies 3,000
Accounts Payable 3,000

9 Cash 8,000
Service Revenue 8,000

12 Utility Expense 2,000

Cash 2,000

18 Accounts Receivable 17,000

Service Revenue 17,000

21 Cash 9,000
Service Revenue 9,000

21 No Journal Entry

26 Accounts Payable 3,000

Cash 3,000

28 Cash 6,000
Accounts Receivable 6,000

30 Emily Crux, withdrawal 16,000

Cash 16,000
STEP 3

CASH ACCOUNTS PAYABLE

120,000 5,000 3,000 36,000
8,000 30,000 3,000
9,000 2,000 3,000 39,000
6,000 3,000 36,000
16,000
143,000 56,000 EMILY CRUZ, CAPITAL
87,000 120,000

EQUIPMENT
30,000 120,000

RENT EXPENSE
30,000
5,000

FURNITURE
36,000 5,000

UTILITY EXPENSE
36,000 2,000

SUPPLIES
3,000 2,000

EMILY CRUZ, WITHDRAWAL

16,000
3,000

ACCOUNTS RECEIVABLE 16,000

17,000 6,000
SERVICE REVENUE
8,000
11,000 17,000
9,000

34,000
STEP 4
CRUZ ACCOUNTING FIRM
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2022

CASH 87,000
ACCOUNTS RECEIVABLE 11,000
SUPPLIES 3,000
FURNITURE 36,000
EQUIPMENT 30,000
ACCOUNTS PAYABLE 36,000
EMILY CRUZ, CAPITAL 120,000
EMILY CRUZ, WITHDRAWAL 16,000
SERVICE REVENUE 34,000
RENT EXPENSE 5,000
UTILITY EXPENSE 2,000
___________ ___________
TOTAL 190,000 190,000
=========== ===========

STEP 5

1. ACCOUNTS RECEIVABLE 4,000

SERVICE REVENUE 4,000

2. SERVICE REVENUE 6,000

UNEARNED SERVICE REVENUE 6,000

3. SUPPLIES EXPENSE 2,000

SUPPLIES 2,000

4. DEP’N EXPENSE-EQUIPMENT 500

ACC. DEP’N-EQUIPMENT 500

DEP’N EXPENSE-FURNITURE 600

ACC. DEP’N-FURNITURE 600

5. SALARY EXPENSE 15,000

SALARY PAYABLE 15,000
STEP 6
CRUZ ACCOUNTING FIRM
ADJUSTED TRIAL BALANCE
AS OF DECEMBER 31, 2022

CASH 87,000
ACCOUNTS RECEIVABLE 15,000
SUPPLIES 1,000
FURNITURE 36,000
ACC. DEP’N-FURNITURE 600
EQUIPMENT 30,000
ACC. DEP’N-EQUIPMENT 500
ACCOUNTS PAYABLE 36,000
SALARY PAYABLE 15,000
UNEARNED SERVICE INCOME 6,000
EMILY CRUZ, CAPITAL 120,000
EMILY CRUZ, WITHDRAWAL 16,000
SERVICE REVENUE 32,000
RENT EXPENSE 5,000
UTILITY EXPENSE 2,000
SUPPLIES EXPENSE 2,000
DEP’N EXPENSE-EQUIPMENT 500
DEP’N EXPENSE-FURNITURE 600
SALARY EXPENSE 15,000
____________ ___________
TOTAL 210,100 210,100
============= ============
STEP 7

CRUZ ACCOUNTING FIRM

STATEMENT OF COMPREHENSIVE INCOME
AS OF DECEMBER 31, 2022

REVENUE:
SERVICE REVENUE 32,000
LESS: OPERATING EXPENSES
RENT EXPENSE 5,000
UTILITY EXPENSE 2,000
SUPPLIES EXPENSE 2,000
DEP’N EXPENSE-EQUIPMENT 500
DEP’N EXPENSE-FURNITURE 600
SALARY EXPENSE 15,000 25,100
NET INCOME 6,900
 CRUZ ACCOUNTING FIRM
STATEMENT OF OWNER’S EQUITY
AS OF DECEMBER 31, 2022

EMILY CRUZ, CAPITAL BEGINNING 120,000

ADD: NET INCOME 6,900
TOTAL 126,900
LESS: WITHDRAWALS 16,000
EMILY CRUZ, CAPITAL, ENDING 110,900

CRUZ ACCOUNTING FIRM

STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2022

ASSET

CURRENT ASSET
CASH 87,000
ACCOUNTS RECEIVABLE 15,000
SUPPLIES 1,000 103,000
NON CURRENT ASSET
FURNITURE 36,000
LESS: ACC. DEP’N 600 35,400
EQUIPMENT 30,000
LESS: ACC. DEP’N 500 29,500 64,900
TOTAL ASSET 167,900
=======
LIABILITIES
CURRENT LIABILITIES
ACCOUNTS PAYABLE 36,000
SALARY PAYABLE 15,000
UNEARNED SERVICE INCOME 6,000 57,000

OWNER’S EQUITY
EMILY CRUZ, CAPITAL, END 110,900
TOTAL LIABILITIES & OWNER’S EQUIT 167,900
=======
STEP 8

1. SERVICE REVENUE 32,000

INCOME SUMMARY 32,000

2. INCOME SUMMARY 25,100

RENT EXPENSE 5,000
UTILITY EXPENSE 2,000
SUPPLIES EXPENSE 2,000
DEP’N EXPENSE-EQUIPMENT 500
DEP’N EXPENSE-FURNITURE 600
SALARY EXPENSE 15,000

3. INCOME SUMMARY 6,900

EMILY CRUZ, CAPITAL 6,900

4. EMILY CRUZ, CAPITAL 16,000

EMILY CRUZ, WITHDRAWALS 16,000

STEP 9

CRUZ ACCOUNTING FIRM

POST-CLOSING TRIAL BALANCE
AS OF DECEMBER 31, 2022

CASH 87,000
ACCOUNTS RECEIVABLE 15,000
SUPPLIES 1,000
FURNITURE 36,000
ACC. DEP’N-FURNITURE 600
EQUIPMENT 30,000
ACC. DEP’N-EQUIPMENT 500
ACCOUNTS PAYABLE 36,000
SALARIES PAYABLE 15,000
UNEARNED SERVICE INCOME 6,000
EMILY CRUZ, CAPITAL 110,900
------------ --------------
TOTAL 169,000 169,000
======= ========
STEP 10

1. SERVICE REVENUE 4,000

ACCOUNTS RECEIVABLE 4,000

2. UNEARNED SERVICE REVENUE 6,000

SERVICE REVENUE 6,000

3. NO REVERSING ENTRY

4. NO REVERSING ENTRY

5. SALARY PAYABLE 15,000

SALARY EXPENSE 15,000