Question

Finandal statements and desing entries Instructions Beacon Signals Company maintains and repairs warming lights, such as those found on radio towers and housesBeacon Signais Company prepared the following end-of-period spreadsheet at December 31, 2019 the end of the focalyes Beacon Signals Company End-of-Period Spreadsheet For the Year Ended December 31, 2019 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Tite Cash 13,000.00 13,000.00 Accounts 40,500.00 (a) 12.500.00 53,000.00 Recevable Prepaid Insurance 4.200.00 (D) 3,000.00 (c) 2.250.00 Supplies 3.000.00 98.000.00 500,000.00 1,200.00 750.00 98,000.00 500,000.00 Building 255,300.00 (d) 9.000.00 264,300.00 121.900.00 121.800.00 Accumulated Depreciation Building Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages 100,100.00 (*) 4.500.00 104.500.00 15.700.00 15.700.00 4.900.00 4,900.00 Payable Uneamed Rent ( 1300 2.100.00 238,100.00 800.00 238,100.00 Sarah Colin Capital 10,000.00 10.000.00 Fees Eamed 401 200.00 1,300.00 Rent Revenue Page 1

Answer 1

4 parts answered as per guidelines-

1. Income statement

Income statement Beacon Signals Company Revenue (a) Fees Earned Rent Revenue 402500 401200 1300 Less: Expense (b) 233050 Less: Salaries and wages expense 168000 Less: Advertising expense 21700 Less: Utilities expense 11400 Less: Depreciation Expense- Building 9000 Less: Repairs Expense 8850 Less: Depreciation Expense-Equipme 4500 Less: Insurance Expense 3000 Less: Supplies Expense 2250 Less: Miscellaneous Expense 4350 Net Profit (a-b) 169450

2. Owner's equity

Statement of Shareholder's Equity Beacon Signals Company Sarah Colin Capital Add: Net Income 238100 169450 407550 10000 397550 Less: Drawings Increase in equity

3. Balance Sheet

Balance Sheet Beacon Signals Company As at 31st December, 2019 Assets Cash 13,000 Accounts Receivable 53000 Prepaid Insurance 1200 Supplies 750 Land 98000 Building 500000 Less: Accumulated Depreciation 264300 235700 Equipment 121900 Less: Accumulated Depreciation 104600 17300 418950 Liabilities Accounts Payable Salaries and Wages Payable Unearned Rent Total Liabilities Shareholder's Equity Total Liabilites & shareholder's equity 15700 4900 800 21400 397550 418950

4. Journal entries

Closing Entry 31-Dec Accounts Receivable Fees Earned Debit Credit 12500 12500 3000 31-Dec Insurance Expense Prepaid Insurance 3000 2250 31-Dec Supplies Expense Supplies 2250 9000 31-Dec Depreciation Expense- Building Accumulated Depreciation- Building 9000 31-Dec Depreciation Expense-Equipment 4500 Accumulated Depreciation- Equipment 4500 4900 31-Dec Salaries and wages expense Salaries and wages payable 4900 1300 31-Dec Unearned Rent Rent Revenue 1300