Question

Instructions Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2018, the end of the fiscal year: Lamp Light Company End-of-Period Spreadsheet For the Year Ended December 31, 2018 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,800.00 10,800.00 Accounts Receivable 38,900.00 (a) 11,300.00 50,200.00 Prepaid Insurance 4,200.00 (b) 3,000.00 1,200.00 Supplies 2.730.00 (c) 2,250.00 480.00 Land 98,000.00 98,000.00

Answer 1

As required, all statements are presented below
Income Statement for the year ended December 31, 2018 Particulars Amount ($) (a) Revenue from Operations Fees earned 375000 Rent revenue 1300 Total Revenue from Operations 376300 (b) Expenses Cost of Goods Sold Supplies Expenses Employee Benefit Expenses 2250 168000 Salaries and Wages Expenses Depreciation and Amortisation Depreciation expenses - Building Depreciation expenses - Equipme Miscellaneous Expenses 10100 6680 16780 4320 Advertising Expenses Utilities Expense Repairs Expense Insurance Expense Total Expenses 21700 11400 8850 3000 236300 140000 (c) Profit before tax Less: Taxes(Since Tax rate not provided, assumed as nil) (d) Profit after Tax 140000

Retained Earnings Statement Particulars Opening Balance Add: Current year profit Less: Dividend Paid Closing Balance Amount ($) 128100 140000 10000 258100 Lamp Light Company Balancesheet as on December 31, 2018 Particulars Note Amount ($) Assets (a) Non Current Assets (1) Property, Plant and Equipment 1 291820 50200 (b) Current Assets (i) Accounts Receivable (ii) Cash and Cash Equivalents (After Dividend adjustment) (iii) Inventory (iv) Other Current Assets - Prepaid Insurance 10800 480 1200 Total 354500 15700 Equity and Liabilities (a) Non Current Liabilities (b) Current Liabilities (i) Accounts Payable (ii) Other current Liabilities - Salaries and Wages Payable Unearned rent (c) Common Stock (d) Retained Earnings Total 4900 800 75000 258100 354500

Notes: 1. Property, Plant & Equipment Particulars Land Building Equipment Total Accumulated depreciation Building Equipment Total Accumulated Depreciation Amount ($) 98000 400000 101000 599000 215400 91780 307180 Net Property, Plant & Equipment 291820

Date Credit ($) Debit ($) 236300 Dec-31 Dr 2250 Closing Entries Particulars Profit & Loss a/c To Supplies Expenses To Salaries and Wages Expenses To Depreciation expenses - Building To Depreciation expenses - Equipment To Miscellaneous Expenses To Advertising Expenses To Utilities Expense To Repairs Expense To Insurance Expense (Being all expenses transferred to Profit & Loss account) 168000 10100 6680 4320 21700 11400 8850 3000 Dec-31 375000 1300 Dr Fees earned a/c Dr Rent revenue a/c To Profit & Loss a/c (Being all Income transferred to Profit & loss a/c) 376300 Dec-31 140000 140000 Profit & Loss a/c Dr To Retained Earnings a/c (Being current year profit transferred to Retained Earnings) Dec-31 Retained Earnings a/c Dr 10000 10000 To Dividend a/c (Being divident adjusted against retained earnings)

Post closing trial Balance Credit Account Title Cash Accounts receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation - Building Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries and wages payable Unearned rent Debit 10800 50200 1200 480 98000 400000 215400 101000 91780 15700 4900 800 Common Stock Retained Earnings 75000 258100 661680 661680