Journal Entries Dec Unadjusted Trial Balance For SoccerBox I ✓ Solved
Journal Entries Dec Unadjusted Trial Balance SoccerBox Inc
Create journal entries for SoccerBox Inc. for the year ended December 31, 2019, including an unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements. The statements should include an income statement, a statement of stockholder's equity, and a balance sheet. All amounts in the statements are to be zero.
Paper For Above Instructions
In this paper, we will detail the journal entries for SoccerBox Inc. for the accounting period ending December 31, 2019. The importance of proper financial record-keeping cannot be overstated, as it forms the backbone of any organization’s financial reporting and decision-making processes. This report will encompass an unadjusted trial balance followed by the necessary adjusting entries, an adjusted trial balance, and finally, the financial statements that outline the company's performance and position at the end of the reporting period.
Unadjusted Trial Balance
The unadjusted trial balance for SoccerBox Inc. as of December 31, 2019, is as follows:
| Account | Debit | Credit |
|---|---|---|
| Cash | $0 | |
| Inventory | $0 | |
| Accounts Payable | $0 | |
| Common Stock | $0 | |
| Total | $0 | $0 |
The unadjusted trial balance is essentially a listing of all accounts from the ledger and their respective balances. As stated, all amounts for SoccerBox Inc. are zero, which indicates there were no transactions during this period that required them to record in their financial statements.
Adjusting Entries
On December 31, 2019, it is essential to make adjusting entries to ensure that the financial statements accurately reflect the company's finances. However, since all indicative amounts are zero, we detail how entries would typically be recorded if there were any possible operations.
- Record accrued expenses (if any):
- Debit: Expense Accounts
- Credit: Accounts Payable
- Record any inventory adjustment:
- Debit: Cost of Goods Sold
- Credit: Inventory Account
Since there are no records of transactions, the adjusting entries remain void, standing at zero balances.
Adjusted Trial Balance
The adjusted trial balance includes all adjustments made to the unadjusted trial balance. Once adjustments are made, the adjusted trial balance would be structured similarly, yet still reflecting zero figures:
| Account | Debit | Credit |
|---|---|---|
| Cash | $0 | |
| Inventory | $0 | |
| Accounts Payable | $0 | |
| Total | $0 | $0 |
It is evident that no financial activities transpired requiring any adjustments over the month. Consequently, the adjusted trial balance is identical to the unadjusted trial balance.
Financial Statements
Income Statement
The income statement for SoccerBox Inc. for the year ended December 31, 2019, summarizes the revenues and expenses:
| Revenues | $0 |
|---|---|
| Expenses | $0 |
| Net Income | $0 |
As no revenue was generated and no expenses incurred, the net income remains at a standstill, totaling zero.
Statement of Stockholder's Equity
The statement of stockholder's equity reflects the changes in equity during the period:
| Stockholder's Equity | Beginning Balance | Ending Balance |
|---|---|---|
| Common Stock | $0 | $0 |
| Retained Earnings | $0 | $0 |
| Total | $0 | $0 |
No changes occurred in the stockholder’s equity section, given that no transactions impacted equity.
Balance Sheet
The balance sheet as of December 31, 2019, shows the financial position of the company:
| Assets | $0 |
|---|---|
| Liabilities | $0 |
| Stockholder's Equity | $0 |
| Total Liabilities and Equity | $0 |
The balance sheet reiterates that SoccerBox Inc. has not engaged in any operations, thus reflecting a state of inactivity with all corresponding figures being zero.
Conclusion
This document provides a detailed presentation of the journal entries, trial balances, and financial statements for SoccerBox Inc. for the year ended December 31, 2019. Each component outlines that the company did not engage in any business transactions, establishing a comprehensive understanding of how objectivity in financial reporting can reflect a company's activities or lack thereof.
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