Question

The adjusted trial balance of Karise Repairs on December 31 follows. Credit Debit $118,000 1,700 2,200 60,000 KARISE REPAIRS Adjusted Trial Balance December 31 No. Account Title 101 Cash 124 Office supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 201 Accounts payable 210 Wages payable 301 C. Karise, Capital 302 c. Karise, Withdrawals 401 Repair fees earned 612 Depreciation expense-Equipment 623 Wages expense 637 Insurance expense 640 Rent expense 650 Office supplies expense 690 Utilities expense Totals $ 6,000 12,500 1,200 30,000 19,000 218,600 6,000 38,000 1,200 15,000 4,200 3,000 $268,300 $268,300 Note: C. Karise, Capital was $30,000 on December 31 of the prior year. D.... 1 of 1 Next

Answer 1

KARISE REPAIRS Balance sheet December 31 KARISE REPAIRS Statement of change in Owner's Equity For Year Ended December 31 C.Karise.capital, Dec.31 prior year end $ 30,000 Add: Net income $ 151,200 Less: C.Karise withdrawals $ 19,000 C.Karise,capital,Dec 31 current year end $ 162,200 Assets: Current Assets $ 218,600 KARISE REPAIRS Income Statement For Year Ended December 31 Revenues: Repair fees earned Expenses: Depreciation expense-Equipment $ 6,000 Wages expense $38,000 Insurance expense $ 1,200 Rent expense $ 15,000 Office supplies expense $ 4,200 Utilities expense $ 3,000 Total Expenses Net Income Cash $ 118,000 $ 1,700 $ 2.200 $ 121,900 $ 60,000 $ 6,000$ 54,000 $ 175,900 $ 67,400 $151,200 Office Supplies Prepaid Insurance Total Current Assets Property,Plant and Equipment Equipment Less:Accumulated depreciation - Equipment Total Assets Liabilities: Current Liabilities Accounts Payable Wages Payable Total Current Liabilities Equity: C.Karise Capital Total Owners Equity Total Liablities and Owners Equity $ 12,500 $ 1,200 $ 13,700 $ 162,200 $ 162,200 $ 175,900

Journals-closing entries Sl.no Accounts Title 1 Repair fees earned Income Summary close revenue account) Debit Credit $ 218,600 $ 218,600 $ 67,400 KARISE REPAIRS Worksheet For Year Ended December 31 Trial balance Entry Info Adjusted Trial Balance Debit Credit Debit Credit Debit Credit $ 118,000 $ 118,000 $ 1,700 S 1,700 S 2,200 $ 2,200 $ 60,000 $ 60,000 $ 6,000 S 6,000 S 12,500 $ 12,500 $ 1,200 $ 1,200 S 30,000 $ 19,000 $ 151,200 $ 162,200 $ 19,000 $ 19,000 $ 218,600 $ 218,600 S 6,000 S 6,000 $ 38,000 $ 38,000 $ 1,200 S 1,200 $ 15,000 $ 15,000 S 4,200 S 4,200 S 3,000 S 3,000 $ 67,400 $ 218,600 $ 151,200 $ 268,300 $ 268,300 $ 456,200 $ 456,200 $ 181,900 $ 181,900 SI. Account Titles 101 Cash 124 Office Supplies 128 Prepaid Insurance 167 Equipment 168 Accumulated Depreciation-Equipment 201 Accounts Payable 210 Wages Payable 301 C. Karise, Capital 302 C.Karise, Withdrawals 401 Repairs Fees Earned 612 Depreciation Expense-Equipment 623 Wages Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 690 Utilities Expense 901 Income Summary 2 Income Summary Depreciation expense-Equipment Wages expense Insurance expense Rent expense Office supplies expense Utilities expense (To close the expense account) $ 6,000 $ 38,000 $ 1,200 $ 15,000 $ 4,200 $ 3,000 $ 151,200 3 Income Summary C.Karise Capital (To close net income to capital) $ 151,200 $ 19,000 4 C.Karise,Capital C.Karise,Withdrawals (To close the drawings to capital) $ 19,000 Total Ending Capital= Beginning Capital + Net Income - Withdrawals *C.Karise, Capital=[$30,000+151,200-19,000]=$162,200.

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