Prepare financial statements, closing entries, and post-closing trial balance. The adjusted trial balance for Marine Fishing Centre is as follows:
MARINE FISHING CENTRE Adjusted Trial Balance March 31, 2017
|
Debit
|
Credit
|
|
Cash
|
mce_markernbsp; 7,720
|
|
|
Interest receivable
|
750
|
|
|
Supplies
|
1,425
|
|
|
Debt investments
|
30,000
|
|
|
Land
|
46,800
|
|
|
Building
|
186,900
|
|
|
Accumulated depreciation-building
|
|
$ 31,150
|
|
Equipment
|
36,200
|
|
|
Accumulated depreciation-equipment
|
|
18,100
|
|
Accounts payable
|
|
5,875
|
|
Interest payable
|
|
990
|
|
Unearned revenue
|
|
2,190
|
|
Notes payable ($6,000 must be paid in 2018)
|
|
66,000
|
|
R. Falkner, capital
|
|
165,300
|
|
R. Falkner, drawings
|
46,200
|
|
|
Service revenue
|
|
124,300
|
|
Interest revenue
|
|
1,500
|
|
Depreciation expense
|
9,850
|
|
|
Interest expense
|
3,960
|
|
|
Insurance expense
|
4,500
|
|
|
Salaries expense
|
30,000
|
|
|
Supplies expense
|
5,700
|
|
|
Utilities expense
|
5,400
|
|
| |
$415,405
|
$415,405
|
Instructions
(a) Prepare an income statement for the year ended March 31, 2017.
(b) Prepare a statement of owner's equity. The owner, Rachael Falkner, invested $2,300 cash in the business during the year. (Note: The investment has been recorded and it is included in the capital account.)
(c) Prepare a classified balance sheet.
(d) Prepare closing entries.
(e) Use T accounts to post the closing entries and calculate the balance in each account. (Ignore the accounts not affected by the closing entries.)
(f) Prepare a post-closing trial balance and compare the balance in the R. Falkner, Capital account with the information in the statement of owner's equity.