Required:
1. Prepare all journal entries to record the information for 2011. Also, prepare any necessary adjusting entries.
2. Prepare a trial balance as of December 31, 2011. There is no need to show your ledger T-accounts; however, preparing and posting to T-accounts may aid in the preparation of the trial balance.
3. Prepare an income statement for the year ended December 31, 2011, and a balance sheet as of December 31, 2011.
4. Prepare all journal entries to record the information for 2012. Also prepare any necessary adjusting entries.
5. Prepare a trial balance as of December 31, 2012. (As you compute the amounts to include in the trial balance, don't forget the beginning balances left over from 2011.)
6. Prepare an income statement for the year ended December 31, 2012, and a balance sheet as of December 31, 2012.