The adjusted trial balance of Karise Repairs on December 31, 2017, follows.
KARISE REPAIRS Adjusted Trial Balance December 31, 2017
| No. |
Account Title |
Debit |
Credit |
| 101 |
Cash |
66,000 |
|
| 124 |
Office supplies |
1,400 |
|
| 128 |
Prepaid insurance |
2,050 |
|
| 167 |
Equipment |
50,000 |
|
| 168 |
Accumulated depreciation-Equipment |
|
5,000 |
| 201 |
Accounts payable |
|
13,000 |
| 210 |
Wages payable |
|
700 |
| 301 |
C. Karise, Capital |
|
30,000 |
| 302 |
C. Karise, Withdrawals |
18,500 |
|
| 401 |
Repair fees earned |
|
153,350 |
| 612 |
Depreciation expense-Equipment |
5,000 |
|
| 623 |
Wages expense |
36,000 |
|
| 637 |
Insurance expense |
1,200 |
|
| 640 |
Rent expense |
14,500 |
|
| 650 |
Office supplies expense |
4,200 |
|
| 690 |
Utilities expense |
3,200 |
|
| |
Totals |
202,050 |
202,050 |
Assume there are no owner investments in 2017.
Required:
1a. Prepare an income statement for the year 2017.
1b. Prepare a statement of owner's equity for the year 2017.
1c. Prepare a classified balance sheet at December 31, 2017.
2. Complete the work sheet using the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance.
3. Using information from the work sheet in Requirement 2, prepare the appropriate closing entries.