Question

Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year:

	Beacons Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 20Y5
	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	10,400				10,400
Accounts Receivable	39,900		(a) 9,300		49,200
Prepaid Insurance	4,500			(b) 3,150	1,350
Supplies	2,780			(c) 2,180	600
Land	98,000				98,000
Building	412,000				412,000
Accumulated Depreciation-Building		205,300		(d) 13,000		218,300
Equipment	102,000				102,000
Accumulated Depreciation-Equipment		85,100		(e) 4,800		89,900
Accounts Payable		15,800				15,800
Salaries and Wages Payable				(f) 4,000		4,000
Unearned Rent		2,000	(g) 1,100			900
Common Stock		90,000				90,000
Retained Earnings		126,430				126,430
Dividends	10,000				10,000
Fees Earned		363,100		(a) 9,300		372,400
Rent Revenue				(g) 1,100		1,100
Salaries and Wages Expense	158,500		(f) 4,000		162,500
Advertising Expense	21,300				21,300
Utilities Expense	15,500				15,500
Depreciation Expense-Building			(d) 13,000		13,000
Repairs Expense	8,850				8,850
Depreciation Expense-Equipment			(e) 4,800		4,800
Insurance Expense			(b) 3,150		3,150
Supplies Expense			(c) 2,180		2,180
Miscellaneous Expense	4,000				4,000
	887,730	887,730	37,530	37,530	918,830	918,830

Required:

1.	Prepare an income statement for the year ended December 31, 20Y5. 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 stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $20,000 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles.
3.	Prepare a balance sheet as of December 31, 20Y5. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
4.	Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
5.	Prepare a post-closing trial balance.

CHART OF ACCOUNTS
Beacons 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 Common Stock 32 Retained Earnings 33 Dividends	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 and Amount Descriptions

Labels
Current assets
Current liabilities
December 31, 20Y5
Expenses
For the Year Ended December 31, 20Y5
Property, plant, and equipment
Revenues
Amount Descriptions
Book value-building
Book value-equipment
Balances, December 31, 20Y5
Balances, January 1, 20Y5
Issued common stock
Dividends
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and stockholders’ equity
Total property, plant, and equipment
Total revenues
Total stockholders’ equity

Income Statement 1. Prepare an income statement for the rear ended December 31, 2015 Ma ner 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 Beacons Company Income Statement (Label 1 Label Label

5. Prepare a post-closing trial balance.

Beacons Company

POST-CLOSING TRIAL BALANCE

December 31, 20Y5

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Prepaid Insurance
4	Supplies
5	Land
6	Building
7	Accumulated Depreciation-Building
8	Equipment
9	Accumulated Depreciation-Equipment
10	Accounts Payable
11	Salaries and Wages Payable
12	Unearned Rent
13	Common Stock
14	Retained Earnings
15	Totals

Answer 1

372,400 1,100 373,500 Beacons Company Income Statement For the Year Ended December 31, 2015 Revenues: Fees Earned Rent Revenue Total Revenues Expenses: Salaries and Wages Expense Advertising Expense Utilities Expense Depreciation Expense-Building Repairs Expense Depreciation Expense-Equipment Insurance Expense Supplies Expense Miscellaneous Expense Total Expenses Net Income 162,500 21,300 15,500 13,000 8,850 4,800 3,150 2,180 4,000 235,280 138,220

Beacons Company Statement of Stockholders Equity For the Year Ended December 31, 2015 Balances, January 1, 2015 Issued common stock Net Income Dividends Balances, December 31, 2045 Common Stock Retained Earnings Total Stockholders Equity 70,000 126,430 196,430 20,000 20,000 138,220 138,220 (10,000) (10,000) 90,000 254,650 344,650

Beacons Company Balance Sheet December 31, 2045 Assets Current Assets: Cash Accounts Receivable Prepaid Insurance Supplies Total Current Assets 10,400 49,200 1,350 600 61,550 98,000 412,000 (218,300) 193,700 Property, plant, and equipment: Land Building Accumulated Depreciation-Building Book value-building Equipment Accumulated Depreciation Equipment Book value-equipment Total property, plant, and equipment Total Assets 102,000 (89,900) 12,100 303,800 365,350 Liabilities & Stockholders Equity Current Liabilities: Accounts Payable Salaries and Wages Payable Unearned Rent Total Liabilities 15,800 4,000 900 20,700 Stockholders Equity: Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 90,000 254,650 344,650 365,350

Credit Beacons Company Closing entries Date Account 31-Dec Fees Earned Rent Revenue Retained Earnings Debit $ 372,400 $ 1,100 Accounting Equation Assets Liabilties Equity $(372,400) $ (1,100) $ 373,500 $ 373,500 $ 235,280 31-Dec Retained Earnings Salaries and Wages Expense Advertising Expense Utilities Expense Depreciation Expense-Building Repairs Expense Depreciation Expense-Equipment Insurance Expense Supplies Expense Miscellaneous Expense $ 162,500 $ 21,300 $ 15,500 $ 13,000 $ 8,850 $ 4,800 $ 3,150 $ 2,180 $ 4,000 $(235,280) $ 162,500 $ 21,300 $ 15,500 $ 13,000 $ 8,850 $ 4,800 $ 3,150 $ 2,180 $ 4,000 $ 10,000 31-Dec Retained Earnings Dividends $ (10,000) $ 10,000 $ 10,000

Beacons Company Account Names Cash Accounts Receivable Prepaid Insurance Supplies Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Common Stock Retained Earnings Totals Post Closing TB Debit Credit 10,400 49,200 1,350 600 98,000 412,000 218,300 102,000 89,900 15,800 4,000 900 90,000 254,650 673,550 673,550