Question

mpany, owned by (c) Journalize the hujus (d) Journalize the closing entries from the financial P4-2A The adjusted trial balance columns of the worksheet for Thao Company, own D. Thao, are as follows. - Account No. 101 112 126 130 157 158 200 201 212 230 301 306 400 610 631 711 722 726 905 THAO COMPANY Worksheet For the Year Ended December 31, 2017 Adjusted Trial Balance Dr. Cr. Account Titles Cash 5,300 Accounts Receivable 10,800 Supplies 1,500 Prepaid Insurance 2,000 Equipment 27,000 Accumulated Depreciation Equipment 5,600 Notes Payable 15,000 Accounts Payable 6,100 Salaries and Wages Payable 2,400 Interest Payable 600 Owner's Capital 13,000 Owner's Drawings 7,000 Service Revenue 61,000 Advertising Expense 8,400 Supplies Expense 4,000 Depreciation Expense 5,600 Insurance Expense 3,500 Salaries and Wages Expense 28,000 Interest Expense 600 Totals 103,700 103,700 Instructions (a) Complete the worksheet by extending the balances to the financial statement columns. (h) Prenare an income statement, owner's equity statement, and a classified balance sheet (Note: $5,000 of the notes payable become due in 2018.) D. Thao did not 2018.) D. Thao did not make any additional investments in the business during the year. (c) Prepare the closing entries. Use J14 for the journal page. (d) Past the closing entries. Use the three-column torm of account. Income Summary No. 350. (e) Prepare a post-closing trial balance.

Answer 1

Answer c Closing Entries Date Dec 31st Credit $ Account Service Revenue Income Summary Debit $ 61,000.00 61,000.00 Dec 31st 49,500.00 Income Summary Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Interest Expense 8,400.00 4,000.00 5,600.00 3,500.00 28,000.00 600.00 Dec 31st 11,500.00 This is $ 61,000 less $ 49, Income Summary Owner's Capital 11,500.00 Dec 31st 7,000.00 Owner's Capital Owner's Drawings 7,000.00 Ledger Service Revenue Explanation Ref. Debit Balance Closing 61,000.00 Date Dec 31 Dec 31 Credit Balance 61,000.00 Credit Date Dec 31 Dec 31 Advertising Expense Explanation Ref. Debit Balance Closing Balance 8,400.00 8,400.00 Credit Date Dec 31 Dec 31 Supplies Expense Explanation Ref. Debit Balance Closing Balance 4,000.00 4,000.00 Credit Date Dec 31 Dec 31 Depreciation expense Explanation Ref. Debit Balance Closing Balance 5,600.00 5,600.00 Credit Date Dec 31 Dec 31 Insurance expense Explanation Ref. Debit Balance Closing Balance 3,500.00 3,500.00 Date Dec 31 Dec 31 Salaries and Wages expense Explanation Ref. Debit Credit Balance 28,000.00 Balance 28,000.00 Closing Credit Date Dec 31 Dec 31 Interest Expense Explanation Ref. Debit Balance Closing Balance 600.00 600.00 Credit Balance 61,000.00 61,000.00 Date Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Income Summary Explanation Ref. Debit Closing Closing 8,400.00 Closing 4,000.00 Closing 5,600.00 Closing 3,500.00 Closing 28,000.00 Closing 600.00 Closing 10,900.00 Credit Date Dec 31 Dec 31 Owner's Drawings Explanation Ref. Debit Balance Closing Balance 7,000.00 7,000.00 Credit Date Dec 31 Dec 31 Dec 31 Owner's Capital Explanation Ref. Debit Balance Closing Closing 7,000.00 Balance 13,000.00 23,900.00 16,900.00 10,900.00 Debit $ Credit $ - Answer d Closing Trial Balance Account Titles o Cash 1 Accounts Receivable 2 Supplies 3 Prepaid Insurance 4 Equipment 5 Accumulated Depreciation- Equipment 6 Notes Payable 7 Accounts Payable 3 Salaries & Wages Payable 9 Interest Payable 0 Owner's Capital 5,300.00 10,800.00 1,500.00 2,000.00 27,000.00 5,600.00 15,000.00 6,100.00 2,400.00 600.00 16,900.00 46,600.00 46,600.00 Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Due to character limit I am attaching the image for closing entries, ledger and closing Trial Balance.

Thao Company
Answer a
Worksheet	Adjusted	Income Statement	Balance Sheet
Account Titles	Debit	Credit	Debit	Credit	Asset	Liabilities
Cash	5,300.00				5,300.00
Accounts Receivable	10,800.00				10,800.00
Supplies	1,500.00				1,500.00
Prepaid Insurance	2,000.00				2,000.00
Equipment	27,000.00				27,000.00
Accumulated Depreciation- Equipment		5,600.00			(5,600.00)
Notes Payable		15,000.00				15,000.00
Accounts Payable		6,100.00				6,100.00
Salaries & Wages Payable		2,400.00				2,400.00
Interest Payable		600.00				600.00
Owner's Capital		13,000.00				13,000.00
Owner's Drawings	7,000.00					(7,000.00)
Service Revenue		61,000.00		61,000.00
Advertising Expense	8,400.00		8,400.00
Supplies Expense	4,000.00		4,000.00
Depreciation Expense	5,600.00		5,600.00
Insurance Expense	3,500.00		3,500.00
Salaries and Wages Expense	28,000.00		28,000.00
Interest Expense	600.00		600.00
Total	103,700.00	103,700.00	50,100.00	61,000.00
Income Summary			10,900.00			10,900.00
Total	103,700.00	103,700.00	61,000.00	61,000.00	41,000.00	41,000.00

Answer b
Income Statement	Amount $
Service Revenue	61,000.00
Less: Expenses
Advertising Expense	8,400.00
Supplies Expense	4,000.00
Depreciation Expense	5,600.00
Insurance Expense	3,500.00
Salaries and Wages Expense	28,000.00
Interest Expense	600.00
Total Expenses	50,100.00
Net Income	10,900.00
Statement of Owner's Equity
Owner's Equity- Opening Balance	13,000.00
Add: Net Income	10,900.00
Less: Drawings	7,000.00
Owner's Equity- Closing Balance	16,900.00
Classified Balance Sheet
Assets	Amount $
Current Assets
Cash	5,300.00
Accounts Receivable	10,800.00
Supplies	1,500.00
Prepaid Insurance	2,000.00
Current Assets	19,600.00
Property, plant, and equipment
Equipment	27,000.00
Accumulated Depreciation- Equipment	(5,600.00)
Total Property, plant, and equipment	21,400.00
Total Assets	41,000.00
Liabilities & Owners' Equity
Current Liabilities
Accounts Payable	6,100.00
Salaries & Wages Payable	2,400.00
Interest Payable	600.00
Current Liabilities	9,100.00
Non Current Liabilities
Notes Payable	15,000.00
Non Current Liabilities	15,000.00
Total Liabilities	24,100.00
Owner's Equity	16,900.00
Total Owner's Equity	16,900.00
Total Liabilities & Stockholder' Equity	41,000.00