Jackson Martin Sports Medicine Services
Trial Balance
December 31, 20X8
| Account Title |
Account # |
Dr |
Cr |
| Cash |
101 |
$56 000 |
|
| Accounts Receivable |
104 |
14,000 |
|
| Office Supplies |
142 |
8 000 |
|
| Prepaid Insurance |
145 |
12,000 |
|
| Office Equipment |
181 |
162,000 |
|
| Accumulated Depreciation: Office Equipment |
181.1 |
|
|
| Computer Equipment |
187 |
60,000 |
|
| Accumulated Depreciation: Computer Equipment |
187.1 |
|
|
| Accounts Payable |
201 |
|
$30,000 |
| Salaries Payable |
202 |
|
|
| Unearned Client Fees |
219 |
|
25,000 |
| Jackson Martin, Capital |
311 |
|
126,000 |
| Jackson Martin, Withdrawals |
312 |
50,000 |
|
| Client Fees Earned |
401 |
|
400,000 |
| Salaries Expense |
511 |
120,000 |
|
| Rent Expense |
521 |
50,000 |
|
| Office Supplies Expense |
523 |
|
|
| Telephone Expense |
525 |
10,000 |
|
| Utilities Expense |
533 |
39,000 |
|
| Insurance Expense |
535 |
|
|
| Depreciation Expense - Office Equipment |
541 |
|
|
| Depreciation Expense - Computer Equipment |
542 |
|
|
|
|
581,000 |
581,000 |
Information for year-end adjustments:
a) Office supplies on hand at year end amounted to $3,000.
b) The office equipment, which was purchased on January 2, 20X8, is being depreciated over 5 years on the straight-line method of depreciation, down to a residue of $22,000.
c) Computer equipment costing $60,000 with an expected life of three years and no residual value was acquired on April 1, 20X8, and is being depreciated on the straight-line method.
d) A premium of $12,000 for a 1-year insurance policy was paid on September 1, 20X8.
e) Employees earned $3,000 of unpaid and unrecorded salaries as of December 31, 20X8
f) At December 31, 20X8, $12,000 of previously unearned client fees had been earned. Required:
1. Journalize the adjusting entries
2. Prepare the worksheet for the year ended December 31, 20X8
3. Prepare the Income Statement & the Statement of Owners Equity for the year ended December 31, 20X8
4. Prepare the Balance Sheet for Justin Park Legal Services at December 31, 20X8
5. Journalize the closing entries & prepare a post-closing trial balance