Question

Please use Excel to complete the following use case:

Please see attached Excel File:

1) Prepare a 12-column work sheet for the year ended 2010 December 31. You need not include account numbers or explanations of adjustments.

2) Prepare an income statement.

3) Prepare a statement of retained earnings.

4) Prepare a classified balance sheet.

5) Prepare adjusting and closing entries.

The following trial balance and additional data are for Roswell Interior Decorators, Inc.:
ROSWELL INTERIOR DECORATORS, INC
Trial Balance
2019 December 31
	Debits		Credits
Cash	85,100		0
Accounts Receivable	81,000		0
Supplies on Hand	4,600		0
Prepaid Rent	12,240		0
Prepaid Advertising	2,880		0
Prepaid Insurance	4,400		0
Office Equipment	5,400		0
Accumulated Depreciation—Office Equipment	0		2,760
Office Furniture	29,200		0
Accumulated Depreciation—Office Furniture	0		8,280
Accounts Payable	0		25,200
Notes Payable (due 2020)	0		4,000
Capital Stock	0		100,000
Retained Earnings, 2019 January 1	0		22,400
Dividends	45,520		0
Service Revenue	0		250,000
Salaries Expense	98,800		0
Utilities Expense	20,000		0
Miscellaneous Expense	23,500		0
	412,640		412640
Financial Data
Supplies on hand at 2019 December 31, are 1,000.
Rent expense for 2019 is 10,000.
Advertising expense for 2019 is 2,304.
Insurance expense for 2019 is 2,400.
Depreciation expense is office equipment, 912, and office furniture, 3,000.
Accrued interest on notes payable is 150.
Accrued salaries are 4,200
Questions
1) Prepare a 12-column work sheet for the year ended 2010 December 31. You need not include account numbers or explanations of adjustments.
2) Prepare an income statement.
3) Prepare a statement of retained earnings.
4) Prepare a classified balance sheet.
5) Prepare adjusting and closing entries.

Answer 1

Ans 1 Particulars Income Statement Debit Credit So Balance Sheet Debit Credit $85,100 $81,000 $1,000 $2,240 $576 $2,000 $5,400 $3,672 $29,200 $11,280 $25,200 $4,200 $150 $4,000 $1,00,000 $22,400 $45,520 Cash Accounts Receivable Supplies on Hand Prepaid Rent Prepaid Advertising Prepaid Insurance Office Equipment Accumulated Depreciation Office Equipment Office Furniture Accumulated Depreciation Office Furniture Accounts Payable Salaries Payable Interest Payable Notes Payable (due 2020) Capital Stock Retained Earnings, 2019 January 1 Dividends Service Revenue Salaries Expense Utilities Expense Miscellaneous Expense Rent Expense Advertising Expense Insurance Expense Depreciation Expense Interest Expense Supplies Expense $O ROSWELL INTERIOR DECORATORS, INC Unadjusted Trail Balance Adjusting Entry Adjusted Trail Balance | Debit Credit Debit Credit Debit Credit $85,100 $85,100 $81,000 $81,000 $4,600 $3,600 $1,000 $12,240 $10,000 $2,240 $2,880 $2,304 $576 $4,400 $2,400 $2,000 $5,400 $5,400 $0 $2,760 $912 $3,672 $29,200 $29,200 $0 $8,280 $3,000 $11,280 $25,200 $25,200 $4,200 $4,200 $150 $150 $0 $4,000 $4,000 $0 $1,00,000 $1,00,000 $0 $22,400 $22,400 $45,520 $0 $45,520 $0 $2,50,000 $2,50,000 $98,800 SO $4,200 $1,03,000 $20,000 $20,000 $23,500 $0 $23,500 $10,000 $10,000 $2,304 $2,304 $2,400 $2,400 $3,912 $3,912 $150 $150 $3,600 $3,600 $4,12,640 $4,12,640 $26,566 $26,566 $4,20,902 $4,20,902 $2,50,000 $1,03,000 $20,000 $23,500 $10,000 $2,304 $2,400 $3,912 $150 $3,600 $1,68,866 $81,134 $2,50,000 $2,50,000 $2,52,036 Net Income Total $1,70,902 $81,134 $2,52,036 $4,12,640 $4,12,640 $26,566 $26,566 $4,20,902 $4,20,902 $2,50,000 $2,52,036

$2,50,000 Ans 3 ROSWELL INTERIOR DECORATORS, INC Statement of Retained Earnings For the year ended December 31, 2019 Beginning Balance $22,400 Add: Income $81,134 Less: Dividend -$45,520 Ending Balance $58,014 Ans 2 ROSWELL INTERIOR DECORATORS, INC Income Statement For the year ended December 31, 2019 Service Revenue Less: Expense Salaries Expense $1,03,000 Utilities Expense $20,000 Miscellaneous Expense $23,500 Rent Expense $10,000 Advertising Expense $2,304 Insurance Expense $2,400 Depreciation Expense $3,912 Interest Expense $150 Supplies Expense $3,600 Total Expense Net Income -$1,68,866 $81,134

Ans 4 ROSWELL INTERIOR DECORATORS, INC Balance Sheet December 31, 2019 Assets Liabilities Current Assets Current Liabilities Cash $85,100 Accounts Payable $25,200 Accounts Receivable $81,000 Salaries Payable $4,200 Supplies on Hand $1,000 Interest Payable $150 Prepaid Rent $2,240 Notes Payable (due 2020) $4,000 Prepaid Advertising $576 Total Current Liabilities Prepaid Insurance $2,000 Total Current Assets $1,71,916 Property, Plant & Equipment Office Equipment $5,400 Stockholders' Equity Less: Accumulated Depreciation Office Equipment -$3,672 $1,728 Capital Stock $1,00,000 Office Furniture $29,200 Retained Earnings $58,014 Less: Accumulated Depreciation-Office Furniture -$11,280 $17,920 Total Stockholders' Equity Net Property, Plant & Equipment $19,648 $33,550 $1,58,014 Total Assets $1,91,564 Total Liabilities & Stockholders' Equity $1,91,564

Credit Ans 5 Date Dec 31 Debit $3,600 $3,600 Dec 31 $10,000 $10,000 Dec 31 $2,304 $2,304 Dec 31 $2,400 Account Title Supplies Expense Supplies (To record supplies expense) Rent Expense Prepaid Rent (To record rent expense) Advertising Expense Prepaid Advertising (To record advertising expense) Insurance Expense Prepaid Insurance (To record insurance expense) Depreciation Expense Accumulated Depreciation-Office Equipment Accumulated Depreciation-Office Furniture (To record depreciation expense) Interest Expense Interest Payable (To record interest expense) Salaries Expense Salaries Payable (To record salaries expense) $2,400 Dec 31 $3,912 $912 $3,000 Dec 31 $150 $150 Dec 31 $4,200 $4,200

Credit Ans 5 Date Dec 31 Debit $2,50,000 $2,50,000 Dec 31 $1,68,866 Account Title Service Revenue Income Summary (To close the service revenue account) Income Summary Salaries Expense Utilities Expense Miscellaneous Expense Rent Expense Advertising Expense Insurance Expense Depreciation Expense Interest Expense Supplies Expense (To close the expense account) Income Summary Retained Earnings (To close the profit for the year) Retained Earnings Dividend (To close the dividend account) $1,03,000 $20,000 $23,500 $10,000 $2,304 $2,400 $3,912 $150 $3,600 Dec 31 $81,134 $81,134 Dec 31 $45,520 $45,520