Question

Below is the adjusted trail balance for Bally Services. BALLY SERVICES Adjusted Trial Balance December 31, 2018 DR CR Cash $ 11,000 Accounts Receivable 23,500 Supplies 3,000 Prepaid Insurance 2,500 Equipment 60,000 Accumulated Depreciation- $ 33,000 Equipment Accounts Payable 5,000 Interest Payable 150 Notes Payable 5,000 Unearned Service Revenue 5,600 Salaries and Wages Payable 1,300 Common Stock 10,000 Retained Earnings 3,500 Service Revenue 63,500 Salaries and Wages Expense 11,300 Insurance Expense 850 Interest Expense 500 Depreciation Expense 5,000 Supplies Expense 5,400 Rent Expense 4,000. $127,050 $127,050 INSTRUCTIONS (complete your work in an excel file) Prepare an income statement, a statement of retained earnings, and a balance sheet for the year ending December 31, 2018. Journalize the closing entries. Prepare a post-closing trial balance.

Answer 1

$63,500 BALLY SERVICES Income Statement For The Year Ended December 31st, 2018 Service Revenue Less: Operating Expenses Salaries and wages expense $11,300 Insurance expense $850 Interest expense $500 Depreciation expense $5,000 Supplies expense $5,400 Rent expense $4,000 Total Operating expenses Net Income $27,050 $36,4501 BALLY SERVICES Statement of Retained Earnings For The Year Ended December 31st, 2018 Opening balance, Retained Earnings Add: Net Income during the year $3,500 $36,450 $39,9501 $0 $39,950 Less: Dividend Closing balance, Retained Earnings BALLY SERVICES Balance Sheet As on December 31, 2018 Assets Current Assets: Cash $11,000 Accounts Receivable $23,500 Supplies $3,000 Prepaid insurance $2,500 Total Current Assets $40,000 $60,000 -$33,000 $27,000 $67,000 Plant, Property and Equipment: Equipment Less: Accumulated depreciation Equipment (net) Total Assets Liabilities and Owners' Equity Current Liabilities: Accounts payable Interest payable Notes payable Unearned service revenue Salaries and wages payable Total current liabilities $5,000 $150 $5,000 $5,600 $1,300 $17,050 Owners' Equity Common stock Retained earnings Total Total Liabilities and Owners' Equity $10,000 $39,950 $49,9501 $67,000 Credit Debit $27,0501 $11,300 $8501 $500 $5,000 $5,400 $4,000 Date General Journal Dec 31, 2018 Income Summary Account Salaries and wages expense Insurance expense Interest expense Depreciation expense Supplies expense Rent expense (To transfer expenses to Income summary Dec 31, 2018 Sales Revenue Income Summary Account (To transfer revenue to Income summary) Dec 31, 2018 Income Summary Account Retained Earnings (To close net income to Retained Earnings $63,500 $63,500 $36,450 $36,450 Credit BALLY SERVICES Post Closing Trial Balance December 31, 2018 Debit Cash $11,000 Accounts receivable $23,500 Supplies $3,000 Prepaid insurance $2,500 Equipment $60,000 Accumulated Depreciation Equipment Accounts payable Interest payable Notes payable Unearned revenue Salaries and wages payable Common stock Retained Earnings Totals $100,000 $33,000 $5,000 $150 $5,000 $5,600 $1,300 $10,000 $39,9501 $100,000