problem: PORTER COMPANY Worksheet for the Year Ended December 31, 2008
|
Account No.
|
Account Titles
|
Adjusted Trial Balance
|
|
|
Income Statement
|
|
Balance Sheet
|
|
|
|
Dr.
|
Cr.
|
Dr
|
Cr.
|
Dr.
|
Cr.
|
|
101
|
Cash
|
18,800
|
|
|
|
18,800
|
|
|
112
|
Accounts Receivable
|
16,200
|
|
|
|
16,200
|
|
|
126
|
Supplies
|
2,300
|
|
|
|
2,300
|
|
|
130
|
Prepaid Insurance
|
4,400
|
|
|
|
4,400
|
|
|
151
|
Office Equipment
|
44,000
|
|
|
|
44,000
|
|
|
152
|
Accumulated Depreciation-Office Equipment
|
20,000
|
|
|
|
|
|
|
200
|
Notes Payable
|
|
20,000
|
|
|
|
20,000
|
|
201
|
Accounts Payable
|
|
8,000
|
|
|
|
8,000
|
|
212
|
Salaries Payable
|
|
2,600
|
|
|
|
2,600
|
|
230
|
Interest Payable
|
|
1,000
|
|
|
|
1,000
|
|
311
|
Common Stock
|
|
30,000
|
|
|
|
30,000
|
|
320
|
Retained Earnings
|
|
6,000
|
|
|
|
6,000
|
|
332
|
Dividends
|
12,000
|
|
|
|
|
|
|
400
|
Service Revenue
|
77,800
|
77,800
|
|
77,800
|
|
|
|
610
|
Advertising Expense
|
12,000
|
|
12,000
|
|
12,000
|
|
|
631
|
Supplies Expense
|
3,700
|
|
3,700
|
|
|
|
|
711
|
Depreciation Expense
|
8,000
|
|
8,000
|
|
|
|
|
722
|
Insurance Expense
|
4,000
|
|
4,000
|
|
|
|
|
726
|
Salaries Expense
|
39,000
|
|
39,000
|
|
|
|
|
905
|
Interest Expense
|
1,000
|
|
1,000
|
|
|
|
|
|
Totals
|
165,400
|
165,400
|
67,700
|
77,800
|
97,700
|
87,600
|
|
|
Net Income
|
|
|
10,100
|
|
|
10,100
|
|
|
Totals
|
|
|
77,800
|
77,800
|
97,700
|
97,700
|
Instructions
Use above Potter company worksheet to prepare the following.
[A] Create an income statement, a retained earnings statement, and a classified balance sheet. $10,000 of the notes payable becomes due in 2009. No additional issuance of common stock occurred during 2008.
[B] Create closing entries. Use J14 for the journal page.
[C] Post the closing entries. Apply the three-column form of account. Income Summary is account
No. 350.
[D] Create a post-closing trial balance.