Question

Wevgandt, Accounting Principles, Ile Help System Announcements Problem 4-2A (Part Level Submission) The adjusted trial balance columns of the worksheet for Thao Company, owned by D. Dr. Cr. 130 THAO COMPANY Worksheet For the Year Ended December 31, 2017 Adjusted Trial Balance Account No. Account Titles 101 Cash 5,300 112 Accounts Receivable 10,500 126 Supplies 1,600 Prepaid Insurance 1,900 Equipment 26,500 Accumulated Depreciation-Equipment 5,100 Notes Payable 13,500 201 Accounts Payable 6,300 212 Salaries and Wages Payable 2,500 230 Interest Payable 500 Owner's Capital 12,600 306 Owner's Drawings 7,100 Service Revenue 61,900 610 Advertising Expense 8,300 631 Supplies Expense 3,900 711 Depreciation Expense 5,100 Insurance Expense 4,000 726 Salaries and Wages Expense 27,700 905 Interest Expense 500 Totals 102,400 102,400 200 301 400 722 ype here to search

(A) . prepare the end of the period closing entries.

(B) prepare a classified statement of financial position. (Note: $12,000 of the notes payable will be paid in 2017 while the remaining balance will be paid in 2018)

Answer 1

Credit | Debit $ 61,900 Date Account Titles and Explanation 31-Dec Service Revenue Income Summary (To close revenue account) $ 61,900 $ 5,300 $ 10,500 $ 1,600 $ 1,900 $ 49,500 December 31, 2019 Assets Current assets Cash Accounts receivable Supplies Prepaid Insurance Total Current Assets Non-current assets Equipment Less: Accumulated Depreciation-Buildings Total Assets 31-Dec Income Summary Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Interest Expense (To close expense accounts) $ 19,300 $ 8,300 $ 3,900 $ 5,100 $ 4,000 $ 27,700 $ 500 $ 26,500 $ 5,100 $ 21,400 $ 40,700 $ 12,400 31-Dec Income Summary Owners' Capital (To close net income) $ 12,400 $ 7,100 31-Dec Owner's Capital Owner's Drawing (To close drawings) $ 7,100 Liabilities and Owners' Equity ($ 61,900 - $ 49,500) Current liabilities Accounts Payable $ 6,300 Salaries and wages payable $ 2,500 Interest Payable $ 500 Notes payable (short-term) $ 12,000 Total current Laibilities Notes Payable - long term Total Laibilities Equity Owner's Capital Total Liabilities and Stockholders' Equity $ 21,300 $ 1,500 ($ 13,500 - $ 12,000) $ 22,800 $ 17,900 $ 40,700 THAO COMPANY Statement of Owners' Capital Owner's Capital, beginning balance $ 12,600 Add: Net Income $ 12,400 $ 25,000 Less: Owner's Drawings $ 7,100 Owner's Capital, ending balance $ 17,900