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, 20Y5, the end of the fiscal year:

For the Year Ended December 31, 2045 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cash 10,400 10,400 Accounts Receivable 39,900 (a) 9,300 49,200 Prepaid Insurance 4,500 (b) 3,150 1,350 Supplies 2,780 (c) 2,180 600 Land 98,000 98,000 Building 412,000 412,000 Accumulated Depreciation-Building 205,300 (d) 13,000 218,300 Equipment 102,000 102,000 Accumulated Depreciation-Equipment 85,100 (e) 4,800 89,900 Accounts Payable 15,800 15,800 Salaries and Wages Payable (f) 4,000 4,000 Unearned Rent 2.000 (a) 1.100 900

Answer 1

Beacons Company Statement of Income For the period ending 31.12.20y5 Fees Earned Rent Revenue Total Revenues 372400 1100 373500 Expenses: Salaries and Wages Expenses Advertising Expenses Utilities Expenses Depreciation Expense - Build Repairs Expense Depreciation Expense - Equip Insurance Expense Supplies Expenses Miscellaneous Expense Net Income 162500 21300 15500 13000 8850 4800 3150 2180 4000 235280 138220 Statement of Stockholders Equity For the period ending 31.12.20y5 Common Retained Stock Earnings Beginning Balance 90000 126430 Add:Net Income 138220 90000 264650 Less:Dividends - 10000 Ending Balance 90000 254650 Total Equity 216430 138220 354650 10000 344650 Post Closing Trial Balance For the period ending 31.12.20y5 Particulars Debit in $ Credit in $ Cash 10400 Accounts Receivable 49200 Prepaid Insurance 1350 Supplies 600 Land 98000 Building 412000 Accum. Depre - Build 218300 Equipment 102000 Accum. Depre - Equip. 89900 Accounts Payable 15800 Salaries and Wages Payable 4000 Unearned Rent 900 Common Stock 90000 Retained Earnings 254650 Totals 673550 673550

Amounts in $ Amounts in $ Balance sheet As at 31.12.20y5 Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities Cash 10400 Accounts Payable Accounts Receivable 49200 Salaries and Wages Payable Prepaid Insurance 1350 Unearned Rent Supplies 600 61550 15800 4000 900 20700 98000 Non Current Assets Land Building Accum. Depre - Build Equipment Accum. Depre - Equip Total Assets 412000 -218300 102000 -89900 193700 Shareholders Equity Common Stock 12100 Retained Earnings 365350 Total Liablities & Equity 90000 254650 344650 365350

Closing Enteries Date Particulars 31.12.2015 Income Summary a/c Dr. To Salaries and Wages Expenses To Advertising Expenses To Utilities Expenses To Depreciation Expense - Build To Repairs Expense To Depreciation Expense - Equip To Insurance Expense To Supplies Expenses To Miscellaneous Expense (Expense accounts closed) Debit in $ Credit in 235280 162500 21300 15500 13000 8850 4800 3150 2180 4000 372400 1100 31.12.20Y5 Fees Earned Rent Revenue To Income Summary (Revenue accounts closed) 373500 138220 31.12.20Y5 Income Summary a/c Dr. To Retained Earnings (Profits transferred) 138220 10000 31.12.20Y5 Retained Earnings a/c Dr. To Dividends (Dividend account closed) 10000