Question

BOONILICOPA 2 End-of-Perlod Spreadsheet 3 For the Year Ended December 31, 2019 4 Unadjusted Adjusted 5 Trial Balance Adjustments Trial Balance 6 Account Title Dr. Cr. Dr. Cr. Dr. Cr. 7 B Cash 13,000 13,000 9 Accounts Receivable 40,500 (a) 12,500 53,000 10 Prepaid Insurance 4,200 (b) 3,000 1200 11 Supplies 3,000 (C) 2.250 750 12 Land 98,000 98,000 13 Building 500,000 500,000 14 Accum. Depr.-Building 255,300 (d) 9.000 264,300 15 Equipment 121,900 121,900 16 Aocum. Depr.-Equipment 100,100 (e) 4,500 104.600 17 Accounts Payable 15,700 15,700 18 Salaries and Wages Payable (1) 4.900 4,900 19 Uneamed Rent 2.100 (9) 1.300 800 20 Sarah Colin, Capital 238,100 238.100 21 Sarah Colin Drawing 10,000 10.000 22 Fees Eamed 388,700 (a) 12,500 401,200 23 Rent Revenue (9) 1,300 1.300 24 Salaries and Wages Expense 163,100 14,900 168,000 25 Advertising Expense 21,700 21,700 26 Utilities Expense 11,400 11.400 27 Depr. Exp.-Building (d) 9.000 9,000 28 Repairs Expense 8,850 8.850 29 Depr. Exp.--Equipment le) 4,500 4,500 30 Insurance Expense b) 3.000 3.000 31 Supplies Expense C 2.250 2.250 32 Misc. Expense 4.350 4350 33 1,000,000 1.000.000 37 450 1.030.900 1.030.900 34 Instructions 1. Prepare an income statement for the year ended December 31. 2. Prepare a statement of owner's equity for the year ended December 31. No additional investments were made during the year. 3. Prepare a balance sheet as of December 31. 4. Based upon the end-of-period spreadsheet, joumalize the closing entries. 5. Prepare a post-closing trial balance.

Answer 1

1.

Income Statement For the year ended December 31, 2019
Revenues
Fees Earned	$ 401,200
Rent Revenue	1,300
Total Revenues		$ 402,500
Expenses
Salaries and Wages Expense	168,000
Advertising Expense	21,700
Utilities Expense	11,400
Depreciation Expense: Building	9,000
Repairs Expense	8,850
Depreciation Expense: Equipment	4,500
Insurance Expense	3,000
Supplies Expense	2,250
Misc. Expense	4,350
Total Expenses		233,050
Net Income		$ 169,450

2.

Statement of Owner's Equity For the year ended December 31, 2019
Sarah Colin, Capital, December 31, 2018	$ 238,100
Add: Net income	169,450
Less: Sarah Colin, Drawing	(10,000)
Sarah Colin, Capital, December 31, 2019	$ 397,550

3.

Balance Sheet December 31, 2019
Assets
Current Assets
Cash		$ 13,000
Accounts Receivable		53,000
Prepaid Insurance		1,200
Supplies		750
Total Current Assets			$ 67,950
Propert, Plant & Equipment
Equipment	$121,900
Accumulated Dpr.: Equipment	(104,600)	17,300
Building	500,000
Accumulated Dpr. : Equipment	(264,300)	235,700
Land		98,000
Property, Plant & Equipment, net			351,000
Total Assets			$ 418,950
Liabilities
Current Liabilities
Accounts Payable		15,700
Salaries and Wages Payable		4,900
Unearned Rent		800
Total Liabilities			21,400
Owner's Equity
Sarah Colin, Capital			397,550
Total Liabilities & Owner's Equity			$ 418,950

4.

Date	General Journal	Debit	Credit
		$	$
Dec 31, 2019	Fees Earned	401,200
	Rent Revenue	1,300
	Income Summary		402,500
	To close revenue accounts
Dec 31, 2019	Income Summary	233,050
	Salaries and Wages Expense		168,000
	Advertising Expense		21,700
	Utilities Expense		11,400
	Depreciation Expense: Building		9,000
	Repairs Expense		8,850
	Depreciation Expense: Equipment		4,500
	Insurance Expense		3,000
	Supplies Expense		2,250
	Misc. Expense		4,350
	To close expense accounts
Dec 31, 2019	Income Summary	169,450
	Sarah Colin, Capital		169,450
	To close income summary
Dec 31	Sarah Colin, Capital	10,000
	Sarah Colin, Drawing		10,000
	To close drawings

4.

Post Closing Trial Balance December 31, 2019
Account Titles	Debit	Credit
	$	$
Cash	13,000
Accounts Receivable	53,000
Prepaid Insurance	1,200
Supplies	750
Land	98,000
Buildings	500,000
Accumulated Dpr. : Buildings		264,300
Equipment	121,900
Accumulated Dpr. : Equipment		104,600
Accounts Payable		15,700
Salaries and Wages Payable		4,900
Unearned Rent		800
Sarah Colin, Capital		397,550
Totals	$ 787,850	$ 787,850