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This Case Study relates to
TCOs E and F, and Chapters 2 and 3.

MAKE
SURE TO COMPLETE ALL REQUIREMENTS WHICH ARE LISTED BELOW.

There are 10 sheets in the
Workbook, including this one.

All
of the information that you need for the project is located in this Workbook.

Requirements
Sheet in Workbook

Requirement 1—Prepare the
Journal Entries in the General Journal
Journal Entries

Requirement 2—Post Journal
Entries to the General Ledger
General Ledger

Requirement 3—Prepare a Trial
Balance
Trial Balance

Requirement 4—Prepare the
Adjusting Entries
Adjusting Entries

Requirement 5—Post Adjusting
Entries to the General Ledger
General Ledger

Requirement 6—Prepare an
Adjusted Trial Balance
Adjusted Trial Balance

Requirement 7—Prepare the
Financial Statements
Financial Statements

Requirement 8—Prepare the
Closing Entries
Closing Entries

Requirement 9—Post Closing
Entries to the General Ledger
General Ledger

Requirement 10—Prepare the
Post Closing Trial Balance
Post-Closing Trial Balance

Hint
for success: Review the Week 2 Lesson prior to starting this project.

There
are also hints contained within certain cells on some of the Worksheet
tabs.

You
can hover over the red pointer at the top right-hand corner of the cell to
read the hint.

Hints are provided for the
following balances:

1)
The debits for the journal entries are on the Journal Entries tab.

2)
The credits for the journal entries are on the Journal Entries tab.

3) The cash balance is on the
General Ledger tab.

4) The debits for the trial
balance are on the Trial Balance tab.

5) The credits for the trial
balance are on the Trial Balance tab.

6)
The debits for the adjusted trial balance are on the Adjusted Trial Balance
tab.

7)
The credits for the adjusted trial balance are on the Adjusted Trial Balance
tab.

8)
Net income for the income statement is on the Financial Statements tab.

9)
Retained earnings as of July 31 are on the Financial Statements tab.

10)
Total assets for the balance sheet are on the Financial Statements tab.

11)
Total liabilities and shareholders’ equity for the balance sheet are on the
Financial Statements tab.

12)
The debits for the post-closing trial balance are on the Post-Closing Trial
Balance tab.

13)
The credits for the post-closing trial balance are on the Post-Closing Trial
Balance tab.

Requirement #1:

During its first month of operation, the Melvin Plumbing
Corporation, which specializes in residential plumbing,

completed
the following transactions.

July 1
Began business by making a deposit
in a company bank account of $90,000, in exchange

for 9,000 shares of $10 par value
common stock.

July 3
Paid the current month’s
rent, $5,500.

July 5
Paid the premium on a
1-year insurance policy, $4,800

July 7
Purchased supplies on
account from Little Company, $900.

July 10
Paid employee salaries,
$3,300

July 14
Purchased equipment from
Lake Company, $11,500. Paid $1,500 down and the balance was

placed on account.
Payments will be $500.00 per month for 20 months. The first payment is due
8/1.

Note: Use accounts
payable for the balance due.

July 15
Received cash for
plumbing revenue for the first half of July, $7,700

July 19
Made payment on account
to Lake Company, $500.

July 31
Received cash for
plumbing revenue for the last half of July, $8,505

July 31
Declared and paid cash
dividends of $600

Prepare
journal entries to record the July transactions in the General Journal below.

Use the following account
names for journal entries.

General Journal

Chart of Accounts:
Account Title (Normal Balance)

Date
Description(Account Name)
Debit
Credit

Assets

Cash (Debit)

Prepaid Insurance (Debit)

Supplies (Debit)

Equipment (Debit)

Accumulated Depreciation
– Equipment (Credit)

Liabilities

Accounts Payable (Credit)

Income Tax Payable
(Credit)

Stockholders’ Equity

Common Stock (Credit)

Retained Earnings
(Credit)

Dividends (Debit)

Revenue

Revenue (Credit)

Expenses

Rent Expense (Debit)

Salaries Expense (Debit)

Insurance Expense (Debit)

Supplies Expense (Debit)

Depreciation Expense
(Debit)

Income Tax Expense
(Debit)

0
0

Note:
Remember that debits must equal credits—All of your journal entries should
balance.