For those not using working papers:
1. If you are not using the working papers, open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of January 1. Enter the January 1 balance of each of the accounts, with a check mark in the Posting Reference column. The beginning balances for Part 2 are the same as the balances from your solution to Part 1 of Comprehensive Problem 2.
For working paper users and nonusers:
2. Enter transactions for the month of January in the general journal. Post immediately to the accounts receivable and accounts payable ledgers.
3. Post from the journal to the general ledger.
4. Prepare schedules of accounts receivable and accounts payable.
5. Prepare a month-end work sheet, income statement, statement of owner’s equity, and balance sheet. The mortgage payable includes $600 that is due within one year.
6. Journalize and post adjusting entries.
7. Journalize and post closing entries.
8. Prepare a post-closing trial balance.