part 1
Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance
The adjusted trial balance of Elias Real Estate Appraisal at June 30, 2014, follows:
ELIAS REAL ESTATE APPRAISAL
Adjusted Trial Balance
june 30,2014
|
|
Balance
|
|
Account Title
|
Debit
|
Credit
|
|
Cash
|
S 4,900
|
|
|
Accounts Receivable
|
5,300
|
|
|
Office Supplies
|
2,400
|
|
|
Prepaid Insurance
|
1,800
|
|
|
Building
|
74,400
|
|
|
Accumulated Depreciation-Building
|
|
$ 26,700
|
|
Land
|
13,600
|
|
|
Accounts Payable
|
|
19,500
|
|
Interest Payable
|
|
8,800
|
|
Salaries Payable
|
|
2,200
|
|
Unearned Revenue
|
|
1,300
|
|
Notes Payable (long-term)
|
|
40,000
|
|
Elias, Capital
|
|
40,500
|
|
Elias, Withdrawals
|
27,900
|
|
|
Service Revenue
|
|
48,200
|
|
Insurance Expense
|
4,500
|
|
|
Salaries Expense
|
33,300
|
|
|
Supplies Expense
|
600
|
|
|
Interest Expense
|
8,800
|
|
|
Utilities Expense
|
2,200
|
|
|
Depreciation Expense-Building Total
|
7,500
|
|
|
S 187,200
|
S 187,200
|
Requirements
1. Prepare the company's income statement for the year ended June 30, 2014.
2. Prepare the company's statement of owner's equity for the year ended June 30, 2014. Assume that there were no contributions
made by the owner during the year.
3. Prepare the company's classified balance sheet in report form at June 30, 2014.
4. Journalize the closing entries.
5. Open the T-accounts using the balances from the adjusted trial balance and post the closing entries to the T-accounts.
6. Prepare the company's post-closing trial balance at June 30, 2014.
part 2
Completing the accounting cycle from adjusted trial balance to post-closing trial balance with an optional worksheet
Start from the posted T-accounts and the adjusted trial balance that Davis Consulting prepared for the company at December 31.
Requirements
1. Complete the worksheet at December 31. (optional)
2. Prepare an income statement for the month ended December 31.
3. Prepare a statement of owner's equity for the month ended December 31.
4. Prepare a classified balance sheet (report form) at December 31.
5. Journalize and post the closing entries at December 31. Denote each dosing amount as Cla and each account balance as Balance.
6. Prepare a post-dosing trial balance.
Preparing adjusting entries and preparing an adjusted trial balance
This problem continues the Davis Consulting situation from Problem P2-43 of Chapter 2. You will need to use the unadjusted trial
balance and posted T-accounts that you prepared in Problem P2-43. The unadjusted trial balance at December 31, 2014 is duplicated
below:
DAVIS CONSULTING
Unadjusted Trail Balance
December 31,2014
Balance
Account Title Debit Credit
Cash $ 16,400
Accounts Receivable 1,200
Office Supplies 900
Equipment 1,800
Furniture 4,200
Accounts Payable $ 4,700
Unearned Revenue 1,400
|
Davis, Capital
|
|
18,000
|
|
Davis, Withdrawals
|
1,400
|
|
|
Service Revenue
|
|
2,600
|
|
Rent Expense
|
550
|
|
|
Utilities Expense
|
250
|
|
|
Total
|
S 26,700
|
S 26,700
|
At December 31, the business gathers the following information for the adjusting entries:
a. Accrued service revenue, $550.
b. Earned $700 of the service revenue collected in advance on December 21.
c. Office supplies on hand, $200.
d. Depreciation on equipment, $30; Depreciation on furniture, $70.
e. Accrued $685 expense for administrative assistant's salary.
Attachment:- p3-45.xlsx