Question

The adjusted trial balance fo Sam's Sundried Company as of December 31,2019, follows

cash Debit Credit

$45,000

Accounts recievable Debit Credit

$10,000

Interest Recievable Debit Credit

$100

Notes Recievable Debit Credit

$6,000

Prepaid Insurance Debit Credit

$940

Prepaid Rent Debit Credit

$2,400

Supplies in hand Debit Credit

$400

Equipment Debit Credit

$40,000

Accumulated Depreciation Debit Credit

$24,000

Land Debit Credit

$10,000

Accounts Payable Debit. Credit

$27,000

Notes Payable Debit Credit

$4,000

Interest Payable Debit Credit

$700

Salaries Payable Debit Credit

$3,400

Capital Stock Debit Credit

$10,000

Retained Earnings,01/01/19 Debit Credit

$16,000

Dividends. Debit Credit

$6,000

Service Revenue Debit Credit

$151,480

Insurance Expense Debit Credit

$1,920

Rent Expense Debit Credit

$13,200

Advertising Expense Debit Credit

$600

Depreciation Expense Debit Credit

$6,000

Supplies Expense Debit Credit

$1,600

Salaries Expense Debit Credit

$92,000

Interest Expense Debit Credit

$620

Interest Revenue Debit Credit

$200

Totals. $236,780 $236,780

Required:

1. prepare the income statement for the year ended December 31, 2019

2. prepare the statement of retained earnings for the year ended December 31, 2019

3. prepare the balance sheet as of December 31, 2019

4. prepare the closing entries for December 31, 2019

5. prepare the post closing trial balance as of December 31, 2019

Answer 1

Requirement 1:

Sam Sunddried Company
Income statement
For the Year Ended December 31, 2019
Revenue
Service revenue		$ 151,480
Interest revenue		$         200
Total Revenue (A)		$ 151,680
Expenses:
Insurance expense	$   1,920
Rent expense	$ 13,200
Advertising expense	$      600
Depreciation expense	$   6,000
Salaries expense	$ 92,000
Interest expense	$      620
Supplies expense	$   1,600
Total Expense (B)		$ 115,940
Net Income (A-B)		$   35,740

Requirement 2:

Sam Sunddried Company
Retained Earnings Statement
For the Year Ended December 31, 2019
Beginning Balance	$ 16,000
Add: Net Income	$ 35,740
Less:
Dividends	$ (6,000)
Retained Earnings Closing Balance	$ 45,740

Requirement 3:

Sam Sunddried Company
Balance sheet
For the Year Ended December 31, 2019
Assets
Current assets:
Cash	$ 45,000
Accounts Receivable	$ 10,000
Interest receivable	$       100
Prepaid insurance	$       940
Prepaid rent	$    2,400
Supplies in hand	$       400
Total Current Assets		$    58,840
Property ,plant, and equipment:
Land		$    10,000
Equipment	$ 40,000
Less: Accumulated depreciation-equipment	$(24,000)	$    16,000
Other Assets:
Notes receivable		$      6,000
Total Assets		$   90,840
Liabilities and stockholder's Equity
Current liabilities:
Accounts Payable	$ 27,000
Interest payable	$       700
Salaries payable	$    3,400
Total current liabilities		$    31,100
Long term liabilities:
Notes payable		$      4,000
Total Liabilities		$   35,100
Shareholder`s Equity:
Capital stock	$ 10,000
Retained Earnings	$ 45,740
Total Shareholder`s Equity		$   55,740
Total liabilities and shareholder's equity		$   90,840

Requirement 4:

Date	Account Titles	Debit	Credit
Dec 31,2019	Service Revenue	$ 151,480
	Income Summary		$ 151,480
	(To close Income account )
Dec 31,2019	Income Summary	$ 115,940
	Insurance expense		$     1,920
	Rent expense		$   13,200
	Advertising expense		$        600
	Depreciation expense		$     6,000
	Salaries expense		$   92,000
	Interest expense		$        620
	Supplies expense		$     1,600
	( To close expenses accounts)
Dec 31,2019	Income Summary	$   35,540
	Retained Earnings		$   35,540
	(To close income summary )
Dec 31,2019	Retained Earnings	$     6,000
	Dividends		$     6,000
	(To close dividend account to retained earnings)

Requirement 5:

Sam Sunddried Company
Post Closing Trial Balance
For the Year Ended December 31, 2019
Account titles	Debit	Credit
Cash	$    45,000	$            -
Accounts Receivable	$    10,000	$            -
Interest receivable	$         100	$            -
Note receivable	$      6,000	$            -
Prepaid insurance	$         940	$            -
Prepaid Rent	$      2,400	$            -
Supplies in hand	$         400	$            -
Land	$    10,000	$            -
Equipment	$    40,000	$            -
Accumulated Depreciation	$            -	$    24,000
Accounts Payable	$            -	$    27,000
Notes Payable	$            -	$      4,000
Interest payable	$            -	$         700
Salaries payable	$            -	$      3,400
Common Stock	$            -	$    10,000
Retained Earnings	$            -	$    45,740
Total	$ 114,840	$ 114,840