Question

Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-of-period spreadsheet at December 31, 2019, the end of the fiscal year:

	Beacon Signals Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 2019
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	13,000.00				13,000.00
Accounts Receivable	40,500.00		(a) 12,500.00		53,000.00
Prepaid Insurance	4,200.00			(b) 3,000.00	1,200.00
Supplies	3,000.00			(c) 2,250.00	750.00
Land	98,000.00				98,000.00
Building	500,000.00				500,000.00
Accumulated Depreciation-Building		255,300.00		(d) 9,000.00		264,300.00
Equipment	121,900.00				121,900.00
Accumulated Depreciation-Equipment		100,100.00		(e) 4,500.00		104,600.00
Accounts Payable		15,700.00				15,700.00
Salaries and Wages Payable				(f) 4,900.00		4,900.00
Unearned Rent		2,100.00	(g) 1,300.00			800.00
Sarah Colin, Capital		238,100.00				238,100.00
Sarah Colin, Drawing	10,000.00				10,000.00
Fees Earned		388,700.00		(a) 12,500.00		401,200.00
Rent Revenue				(g) 1,300.00		1,300.00
Salaries and Wages Expense	163,100.00		(f) 4,900.00		168,000.00
Advertising Expense	21,700.00				21,700.00
Utilities Expense	11,400.00				11,400.00
Depreciation Expense-Building			(d) 9,000.00		9,000.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 4,500.00		4,500.00
Insurance Expense			(b) 3,000.00		3,000.00
Supplies Expense			(c) 2,250.00		2,250.00
Miscellaneous Expense	4,350.00				4,350.00
	1,000,000.00	1,000,000.00	37,450.00	37,450.00	1,030,900.00	1,030,900.00

Required:

1.	Prepare an income statement for the year ended December 31. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
2.	Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items.
3.	Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.
4.	Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. If you are unsure of account titles, see the chart of accounts.
5.	Prepare a post-closing trial balance.

CHART OF ACCOUNTS
Beacon Signals Company
General Ledger
ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation-Equipment LIABILITIES 21 Accounts Payable 22 Salaries and Wages Payable 23 Unearned Rent EQUITY 31 Sarah Colin, Capital 32 Sarah Colin, Drawing	REVENUE 41 Fees Earned 42 Rent Revenue EXPENSES 51 Salaries and Wages Expense 52 Advertising Expense 53 Utilities Expense 54 Depreciation Expense-Building 55 Repairs Expense 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense

Labels:
Current assets
Current liabilities
December 31, 2019
Expenses
For the Year Ended December 31, 2019
Property, plant, and equipment
Revenues
Amount Descriptions:
Decrease in owner’s equity
Increase in owner’s equity
Net income
Net loss
Sarah Colin, capital, January 1, 2019
Sarah Colin, capital, December 31, 2019
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owner’s equity
Total property, plant, and equipment
Total revenues
Withdrawals

Answer 1

Income Statement For the Year Ended December 31, 2019 REVENUE 41 Fees Earned 42 Rent Revenue Total revenues Amount Descriptions: 4,01,200.00 1,300.00 4,02,500.00 EXPENSES 51 Salaries and Wages Expense 52 Advertising Expense 53 Utilities Expense 54 Depreciation Expense-Building 55 Repairs Expense 56 Depreciation Expense-Equipment 57 Insurance Expense 58 Supplies Expense 59 Miscellaneous Expense Total expenses Amount Descriptions: -1,68,000.00 -21,700.00 -11,400.00 -9,000.00 -8,850.00 -4,500.00 -3,000.00 -2,250.00 4,350.00 2,33,050.00 A Net income 1,69,450.00 statement of owner's equity for the year ended December 31, 2019 Particulars Amount Descriptions: Owner's Equity as at 31st December 2018 Sarah Colin, Capital 2,38,100.00 Increase in owner's equity Investments by Owner Net Income for the Period Increase in owner's equity 1,69,450.00 1,69,450.00 Increase in owner's equity Sarah Colin, Drawing Increase in owner's equity -10,000.00 - 10,000.00 Owner's Equity as at 31st December 2019 1 3,97,550.00 Balance sheet as of December 31, 2019 ASSETS 15 Land 16 Building 17 Accumulated Depreciation-Building 18 Equipment 19 Accumulated Depreciation Equipment Amount Descriptions: 98,000.00 5,00,000.00 -2,64,300.00 1,21,900.00 -1,04,600.00 3,51,000.00 Current assets 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Supplies Total current assets 13,000.00 53,000.00 1,200.00 750 67,950.00 Total assets 4,18,950.00 EQUITY AND LIABILITIES Owner's Equity 31 Sarah Colin, Capital 32 Sarah Colin, Drawing Net Income for the Period Owner's Equity 2,38,100.00 -10,000.00 1,69,450.00 3,97,550.00 Liabilities Current Liabilities 21 Accounts Payable 22 Salaries and Wages Payable 23 Unearned Rent Total current Liabilities 15,700.00 4,900.00 800 21,400.00 Total Liabilities 21,400.00 Total liabilities and owner's equity 4,18,950.00 0.00 Journal Entries Particulars Debit Credit 4,500.00 Depreciation Expense-Equipment Accumulated Depreciation Equipment 4,500.00 9,000.00 Depreciation Expense-Building Accumulated Depreciation-Building 9,000.00 Prepaid Insurance Insurance Expense page 320.06 3,000.00 3,000.00 4,900.00 Salaries and Wages Expense Salaries and Wages Payable 4,900.00 Unearned Rent Rent Revenue Total 1300 1300 2270022700