Question

Instructions 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. Dr. Cr. Cr Cash 13,000.00 13,000.00 Accounts Receivable (a) 12,500.00 40,500.00 4,200.00 Prepaid Insurance (b) 3,000.00 (c) 2,250.00 53,000.00 1,200.00 750.00 Supplies 3,000.00 Land 98,000.00 98,000.00 ann annan 0.00

Answer 1

Solution

Beacon Signals Company

Income Statement

Beacon Signals Company Income Statement For the Year Ended December 31, 2019 Revenues Fees Earned $401,200 Rent Revenue $1,300 total revenues $402,500 Expenses: Salaries and wages expense $168,000 Advertising Expense $21,700 Utilities Expense $11,400 Depreciation Expense -Buildings $9,000 Repairs Expense $8,850 Depreciation Expense - equipment $4,500 Insurance Expense $3,000 Supplies Expense $2,250 Miscellaneous Expense $4,350 Total Expenses $233,050 Net Income $169,450

Statement of Owner’s Equity

Beacon Signals Company
Statement of Owner's Equity
As of December 31, 2019
Sarah Colin, Capital January 1, 2019		$238,100
Add: Net Income	$169,450
Increase in owner's equity		$407,550
Less: Withdrawals		$10,000
Decrease in Owner's Equity		$397,550
Sarah Colin, Capital December 31, 2019		$397,550

Balance Sheet

Beacon Signals Company
Balance Sheet
As of December 31, 2019
Assets
Current Assets
Cash		$13,000
Accounts Receivable		$53,000
Prepaid Insurance		$1,200
Supplies		$750
Total Current Assets			$67,950
Property, Plant and Equipment
Land		$98,000
Building	$500,000
Less: Accumulated Depreciation – Buildings	2,64,300	$235,700
Equipment	$121,900
Less: Accumulated Depreciation - Equipment	$104,600	$17,300
Total Property, Plant and Equipment			$351,000
Total Assets			$418,950
Liabilities and Owner's Equity
Liabilities
Current Liabilities
Accounts Payable		$15,700
Salaries and Wages Payable		$4,900
Unearned Rent		$800
Total Current Liabilities			$21,400
Owner's Equity
Sarah Colin, Capital December 31, 2019			$397,500
Liabilities and Owner's Equity			$418,950

Closing Entries

Date	Account Titles and Explanation	Debit	Credit
December 31, 2019	Income Summary	$233,050
	Salaries and wages expense		$168,000
	Advertising Expense		$21,700
	Utilities Expense		$11,400
	Depreciation Expense -Buildings		$9,000
	Repairs Expense		$8,850
	Depreciation Expense - equipment		$4,500
	Insurance Expense		$3,000
	Supplies Expense		$2,250
	Miscellaneous Expense		$4,350
	(To close expenses accounts to income summary)
December 31, 2019	Revenue	$402,500
	Income Summary		$402,500
	(To close revenues to income summary)
December 31, 2019	Income Summary	$169,450
	Increase in Owner's Equity		$169,450

Post-Closing Trial Balance

Beacon Signals Company
Post Closing Trial Balance
As of December 31, 2019
Account Titles	Debit	Credit
Cash	$13,000
Accounts Receivable	$53,000
Prepaid Insurance	$1,200
Supplies	$750
Land	$98,000
Buildings	$500,000
Accumulated Depreciation - Buildings		$264,300
Equipment	$121,900
Accumulated Depreciation - Equipment		$104,600
Accounts Payable		$15,700
Salaries and Wages Payable		$4,900
Unearned Rent		$800
Sarah Colin, Capital		$238,100
Sarah Colin, Drawings	$10,000
Increase in Owner's Equity		$169,450
Totals	$797,850	$797,850