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, 2045, the end of the fiscal year: F G AWN- BTC D E Beacons Company End-of-Period Spreadsheet For the Year Ended December 31, 2045 Unadjusted Trial Balance Adjustments Dr. Cr. Dr. Cr. Adjusted Trial Balance Dr. Cr. 6 Account Title 9,100 10.800 38,900 4,200 2,730 98,000 400,000 3,150 2,180 10.800 48,000 1,050 550 98,000 400,000 205,300 12,000 217,300 101,000 101,000 4,800 85,100 15,700 5,000 8 Cash 9 Accounts Receivable 10 Prepaid Insurance 11 Supplies 12 Land 13 Building 14 Accum. Depr.-Building 15 Equipment 16 Accum. Depr.-Equipment 17 Accounts Payable 18 Salaries & Wages Payable 19 Uneamed Rent 20 Common Stock 21 Retained Earnings 22 Dividends 23 Fees Eamed 24 Rent Revenue 25 Salaries & Wages Expense 26 Advertising Expense 27 Utilities Expense 28 Depr. Exp.-Building 29 Repairs Expense 30 Depr. Exp.-Equipment 31 Insurance Expense 32 Supplies Expense 33 Misc. Expense 89,900 15,700 5,000 1,000 75,000 128,100 1,100 2,100 75,000 128.100 10,000 10,000 363,700 9,100 1.100 372,800 1,100 5,000 158, 100 21,700 16,400 12,000 8,850 163,100 21,700 16,400 12,000 8,850 4,800 3,150 2,180 4,320 905.900 4,800 3,150 2,180 4,320 875,000 875,000 37,330 37,330 905.900 35 Instructions 1. Prepare an income statement for the year ended December 31, 2045, 2. Prepare a statement of stockholders' equity for the year ended December 31, 2015. During the year, common stock of $25,000 was issued. 3. Prepare a balance sheet as of December 31, 2045.

4. Based upon the end-of-period spreadsheet, journalize the closing entries.

5. Prepare a post-closing trial balance

Answer 1

1) Income Statement
Fees Earned	$372,800
Rent Revenue	$1,100
Total Revenues		$373,900
Less: Expenses
Salaries & Wages Expense	$163,100
Advertising Expense	$21,700
Utilities Expense	$16,400
Depr. Exp. - Building	$12,000
Repairs Expense	$8,850
Depr. Exp. - Equipment	$4,800
Insurance Expense	$3,150
Supplies Expense	$2,180
Misc. Expense	$4,320
Total Expenses		$236,500
Net Income		$137,400
2) Stockholders' Statement
Common Stock		$75,000
Add: Additional Issue of Common stock		$25,000
Add: Retained Earnings:
Beginning balance	$128,100
Add: Net Income	$137,400
Less: Dividends	($10,000)
Ending balance of Retained Earnings		$255,500
Total Stockholders' Equity		$355,500
3) Balance Sheet
As of December 31, 20Y5
Assets
Cash ($10,800 + $25,000)		$35,800
Accounts Receivable		$48,000
Prepaid Insurance		$1,050
Supplies		$550
Land		$98,000
Building	$400,000
Less: Accum. Depr. - Building	($217,300)
Buildings, Net		$182,700
Equipment	$101,000
Less: Accum. Depr. - Equipment	($89,900)
Equipment, Net		$11,100
Total Assets		$377,200
Liabilities
Accounts Payable		$15,700
Salaries and Wages Payable		$5,000
Unearned Rent		$1,000
Total Liabilities		$21,700
Common Stock	$75,000
Add: Additional Issue of Common stock	$25,000
Add: Retained Earnings	$255,500
Total Stockholders' Equity		$355,500
Total Liabilities and Stockholders' Equity		$377,200

4) Closing Entries
Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Fees Earned	$372,800
	Rent Revenue	$1,100
	Income Summary		$373,900
	(To close the revenue accounts)
Dec. 31	Income Summary	$236,500
	Salaries & Wages Expense		$163,100
	Advertising Expense		$21,700
	Utilities Expense		$16,400
	Depr. Exp. - Building		$12,000
	Repairs Expense		$8,850
	Depr. Exp. - Equipment		$4,800
	Insurance Expense		$3,150
	Supplies Expense		$2,180
	Misc. Expense		$4,320
	(To close the expense accounts)
Dec. 31	Income Summary ($373,900 - $236,500)	$137,400
	Retained Earnings		$137,400
	(To close the net income)
Dec. 31	Retained Earnings	$10,000
	Dividends		$10,000
	(To close the dividends)

5) Post-Closing Trial Balance
	Debit	Credit
Cash	$10,800
Accounts Receivable	$48,000
Prepaid Insurance	$1,050
Supplies	$550
Land	$98,000
Building	$400,000
Accum. Depr. - Building		$217,300
Equipment	$101,000
Accum. Depr. - Equipment		$89,900
Accounts Payable		$15,700
Salaries and Wages Payable		$5,000
Unearned Rent		$1,000
Common Stock		$75,000
Retained Earnings ($128,100 + $137,400 - $10,000)		$255,500
Totals	$659,400	$659,400