Question

Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year:

	For the Year Ended December 31, 20Y5
	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) 9,100.00		48,000.00
Prepaid Insurance	4,200.00			(b) 3,150.00	1,050.00
Supplies	2,730.00			(c) 2,180.00	550.00
Land	98,000.00				98,000.00
Building	400,000.00				400,000.00
Accumulated Depreciation-Building		205,300.00		(d) 12,000.00		217,300.00
Equipment	101,000.00				101,000.00
Accumulated Depreciation-Equipment		85,100.00		(e) 4,800.00		89,900.00
Accounts Payable		15,700.00				15,700.00
Salaries and Wages Payable				(f) 5,000.00		5,000.00
Unearned Rent		2,100.00	(g) 1,100.00			1,000.00
Common Stock		75,000.00				75,000.00
Retained Earnings		128,100.00				128,100.00
Dividends	10,000.00				10,000.00
Fees Earned		363,700.00		(a) 9,100.00		372,800.00
Rent Revenue				(g) 1,100.00		1,100.00
Salaries and Wages Expense	158,100.00		(f) 5,000.00		163,100.00
Advertising Expense	21,700.00				21,700.00
Utilities Expense	16,400.00				16,400.00
Depreciation Expense-Building			(d) 12,000.00		12,000.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 4,800.00		4,800.00
Insurance Expense			(b) 3,150.00		3,150.00
Supplies Expense			(c) 2,180.00		2,180.00
Miscellaneous Expense	4,320.00				4,320.00
	875,000.00	875,000.00	37,330.00	37,330.00	905,900.00	905,900.00

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 $25,000 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.

Answer 1

372,800 1,100 373,900 Beacons Company Income Statement For the Year Ended December 31, 2045 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 163,100 21,700 16,400 12,000 8,850 4,800 3,150 2,180 4,320 236,500 137,400

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 50,000 128,100 178,100 25,000 25,000 137,400 137,400 (10,000) (10,000) 75,000 255,500 330,500

Beacons Company Balance Sheet December 31, 2045 Assets Current Assets: Cash Accounts Receivable Prepaid Insurance Supplies Total Current Assets 10,800 48,000 1,050 550 60,400 98,000 400,000 (217,300) 182,700 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 101,000 (89,900) 11,100 291,800 352,200 Liabilities & Stockholders Equity Current Liabilities: Accounts Payable Salaries and Wages Payable Unearned Rent Total Liabilities 15,700 5,000 1,000 21,700 Stockholders Equity: Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 75,000 255,500 330,500 352,200

Credit Beacons Company Closing entries Date Account 31-Dec Fees Earned Rent Revenue Retained Earnings Debit $ 372,800 $ 1,100 $ 373,900 $ 236,500 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 $ 163,100 $ 21,700 $ 16,400 $ 12,000 $ 8,850 $ 4,800 $ 3,150 $ 2,180 $ 4,320 $ 10,000 31-Dec Retained Earnings Dividends $ 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 10,800 48,000 1,050 550 98,000 400,000 217,300 101,000 89,900 15,700 5,000 1,000 75,000 255,500 659,400 659,400