Question

Learning Objectives P-F:4-29A Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance The adjusted trial balance of Erickson Real Estate Appraisal at June 30, 2024, follows: 1. Net Loss $(9,500) I ERICKSON REAL ESTATE APPRAISAL Adjusted Trial Balance June 30, 2024 Balance Account Title Debit Credit Cash $ 4,600 Accounts Receivable 5,300 Office Supplies 1,500 Prepaid Insurance 1,700 Land 13,000 Building 82,000 Accumulated Depreciation-Building $ 25,200 Accounts Payable 18,700 Interest Payable 8,500 Salaries Payable 2,400 Unearned Revenue 7,600 Notes Payable (long-term) 40,000 Common Stock 3,000 Retained Earnings 39,500 Dividends 27,300 Service Revenue 48,100 Insurance Expense 4,400 Salaries Expense 33,500

Requirements 5 and 6 only.

Answer 1

Part 1: ERICKSON REAL ESTATE APPRAISAL Income Statement Year Ended June 30, 2024 Revenues: Service Revenue $ 48,100 Expenses: Salaries Expense Interest Expense Depreciation Expense-Building Insurance Expense Utilities Expense Supplies Expense Total Expenses $33,500 8,500 8,200 4,400 2,700 300 57,600 Net Loss $ (9,500) Part 2: ERICKSON REAL ESTATE APPRAISAL Statement of Retained Earnings Year Ended June 30, 2024 Retained Earnings, July 1, 2023 Net loss for the year $ 39,500 (9,500) 30,000 (27,300) Dividends

Retained Earnings, June 30, 2024 $2,700 Part 3: ERICKSON REAL ESTATE APPRAISAL Balance Sheet June 30, 2024 Assets Current Assets: Cash $ 4,600 5,300 1,500 1,700 $ 13,100 Accounts Receivable Office Supplies Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Land Building Less: Accumulated Depreciation-Building Total Property, Plant, and Equipment Total Assets 13,000 $82,000 (25,200) 56,800 69,800 $ 82,900 Liabilities Current Liabilities: $ 18,700 8,500 Accounts Payable Interest Payable Salaries Payable Unearned Revenue 2,400 7,600 Total Current Liabilities $ 37,200

Long-term Liabilities: Notes Payable 40,000 77,200 Total Liabilities Stockholders'Equity Common Stock 3,000 2,700 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 5,700 $ 82,900 Part 4: Date Accounts and Explanation Debit Credit Jun. 30 Service Revenue 48,100 Income Summary 48,100 To close revenue. 57,600 4,400 33,500 300 30 Income Summary Insurance Expense Salaries Expense Supplies Expense Interest Expense Utilities Expense Depreciation Expense-Building To close expenses. 8,500 2,700 8,200 9,500 30 Retained Earnings Income Summary To close Income Summary. 9,500

27,300 30 | Retained Earnings Dividends 27,300 To close dividends. Part 5: Cash Dividends 27,30 Bal. 4,600 Bal. 0 27,300 Clos. Bal. 4,600 Bal. 0 Accounts Receivable Income Summary 57,60 Bal. 5,300 Clos. 48,100 Clos. 0 9,500 Clos. Bal. 5,300 0 Bal. Office Supplies Service Revenue Bal. 1,500 48,100 Bal. 48,10 Clos. 0 Bal. 1,500 0 Bal. Prepaid Insurance Insurance Expense Bal. 1,700 Bal. 4,400 4,400 Clos. Bal. 1,700 Bal. 0 Land Salaries Expense

13,00 33,50 Bal. Bal. 0 0 33,500 Clos. 13,00 Bal. 0 Bal. 0 Building Supplies Expense 82,00 Bal. Bal. 300 0 300 Clos. 82,00 Bal. 0 Bal. 0 Interest Expense Accumulated Depreciation--Building 25,200 Bal. Bal. 8,500 8,500 Clos. 25,200 Bal. Bal. 0 Accounts Payable Utilities Expense 18,700 Bal. Bal. 2,700 2,700 Clos. 18,700 Bal. Bal. 0 Interest Payable Depreciation Expense-Building 8,500 Bal. Bal. 8,200 8,200 Clos. 8,500 Bal. Bal. 0

Salaries Payable 2,400 Bal. 2,400 Bal. Unearned Revenue 7,600 Bal. 7,600 Bal. Notes Payable 40,000 Bal. 40,000 Bal. Common Stock 3,000 Bal. 3,000 Bal. Retained Earnings 39,50 Clos. 9,500 Bal. 0 Clos. 27,300 Bal. 2,700 Part 6: ERICKSON REAL ESTATE APPRAISAL Post-Closing Trial Balance

June 30, 2024 Account Title Balance Debit Credit Cash Accounts Receivable $ 4,600 5,300 1,500 1,700 13,000 82,000 Office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Retained Earnings Total $ 25,200 18,700 8,500 2,400 7,600 40,000 3,000 2,700 $ 108,100 $ 108,100