Question

Dr. P4-3B The completed financial statement columns of the worksheet for Niho Company are shown below. NIHO COMPANY Worksheet For the Year Ended December 31, 2017 Account Income Statement Balance Sheet No. Account Titles Cr. Dr. Cr. 101 Cash 6,200 112 Accounts Receivable 7,500 130 Prepaid Insurance 1,800 157 Equipment 33,000 158 Accumulated Depreciation Equip. 8,600 201 Accounts Payable 11,700 212 Salaries and Wages Payable 3,000 301 Owner's Capital 34,000 306 Owner's Drawings 7,200 400 Service Revenue 46,000 622 Maintenance and Repairs Expense 4,400 711 Depreciation Expense 2,800 722 Insurance Expense 1,200 Salaries and Wages Expense 35,200 732 Utilities Expense 4,000 Totals 47,600 46,000 55,700 57,300 Net Loss 1,600 1,600 47,600 47,600 57,300 57,300 726 Instructions (a) Prepare an income statement, owner's equity statement, and a classified balance sheet. S. Niho made an additional investment in the business of $4,000 during 2017. (b) Prepare the closing entries. (e) Post the closing entries and underline and balance the accounts. (Use T-accounts.) Income Summary is account No. 350. (d) Prepare a post-closing trial balance.

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Answer 1

NIHO Company Income staement for the year ended 31st December, 2017 NIHO Company Owner's Equity statement for the year ended 31st December, 2017 NIHO Company Balancesheet as on 31st December, 2017 In S In $ A) Income: 1 Revenue from services Total (A) 46000 46000 Owner's Equity as at 31st January, 2017 Less: Net Loss from the business In S 34000 (1600) 32400 7200 25200 A) Assets Current Assets Cash and cash equivalents Accounts Receivable Prepaid Insurance Total Current Assets 6200 7500 1800 15500 Less: Drawings made in the year Owner's Equity as at 31st December, 2017 B) Expenses: 1 Depreciation Expense 2 Maintenance and Repairs Expense 3 Salaries and Wages 4 Utility Expense 5 Insurance Expense Total (B) 2800 4400 35200 Non Current Assets Equipment 33000 4000 1200 47600 Total (A) 48500 Net Profit/ (Loss) A-B (1600) B) Liabilities and Equity Current Liabilites Accounts Payable Accumulated Depreciation Salaries and wages payable Total Current Liabilities 11700 8600 3000 23300 Owner's Equity 25200 Total (B) 48500

In 5 Post closing: Trial Balance as on 31st Decembar, 2017 NIHO Company Closing Entries as on 31st December, 2017 Particulars By Equipment a/c Depreciation NC amount particulars 2800 To Profit and loss account amount 2800 Credint In S Credit Dehit 6200 2800 2800l Debit a) Depreciation Expense a/c Dr 2800 To Equipment a/c (Being Depreciation expenses entry passed) 2800 1800 33000 Name of the account 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Equipment 5 Accurnulated Depreciation 6 Salaries and wages payable 7 Accounts Payable 8 Owner's Capital 8600 7200 amount 34000 b) Capital a/c Dr To Drawings a/c (Being Drawings done by Owner) Page 1 = Particulars To Drawings a/c To net loss transferred To balance da Capital Ac amount particulars 7200 By balance b/d 16001 25200 340001 7200 11700 25200 34000 1600 Total 48500 48500 Capital a/c To Profit and Loss a/c 1600 or To Revenue a/c (Being Loss transferred to capital account)