Question

Please answer 1-4

> Problems GroupA in report form, preparing and posting closing entries, and preparing a post-closing trial balance 3,4 P4-29A Preparing financial statements including a classified balance sheet 500) The adjusted trial balance of Erickson Real Estate Appraisal at June 30, 2018, follows: ERICKSON REAL ESTATE APPRAISAL Adjusted Trial Balance June 30, 2018 Balance Debit Credit Account Title $ 4,600 5,300 1,500 1,700 13,000 82,000 Cash Accounts Receivable 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 Dividends Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Utilities Expense Depreciation Expense-Building Total 5 25,200 18,700 8,500 2,400 7,600 40,000 3,000 39,500 27,300 48,100 4,400 33,500 300 8,500 2,700 8,200 $ 193,000 193,000 Requirements 1. Propare the company's income statement for the year ended June 30, 2018. 2. Prepare the company's statement of retained earnings for the year ended June 30, 2018 5 Prepare the company's classified balance sheet in report form at June 30, 2018. 4· Join nalize the closing entries.

Answer 1

ERICKSON REAL ESTATE APPRAISAL Income Statement For the Year ended Jun 30, 2018 Particulars Amount Amount Revenue Service revenue Add: Unearned Revenue Total Revenue 48,100 7,600 55,700 Less: Expenses Salaries Expenses Interest Expenses Utilities Expenses Insurance Expenses Supplies Expenses Depreciation Expenses-Building Total Expenses 33,500 8,500 2,700 4,400 300 8,200 57,600 Net LosS 1,900

ERICKSON REAL ESTATE APPRAISAL Statement of Retained Earnings For the Year ended Jun 30, 2018 Particulars Retained Earnings Common Stock 39,500 1,900 37,600 27,300 10,300 Balance at the beginning of the year Less : Net Loss 3,000 3,000 Less: Dividends Paid Balance at the end of the year 3,000

ERICKSON REAL ESTATE APPRAISAL Balance Sheet As at Jun 30, 2018 Amount Amount Assets Land Building 13,000 82,000 95,000 Accounts Receivables Prepaid Insurance Cash Office Supplies Total of Assets 5,300 1,700 4,600 13,100 1,08,100 Equity & Liabilities: Capital (Common Stock) Retained Earnings 3,000 10,300 13,300 Accounts Payable Interest Payable Salaries Payable Notes Payable Accumulated Depreciation- Build Total of Equity & Liabilities 18,700 8,500 2,400 40,000 25,200 94,800 1,08,100

Journalizing the Closing Entries:

1. Close all Income Accounts to Income Summary :

June,30.   Service Revenue .......Dr - 48,100

               Unearned Revenue ....Dr - 7,600

                                   To Income Summary...........- 55,700

2. Close all expenses accounts to income summary:

June 30, Income summary ........Dr- 57,600

                               To, Salaries expenses- 33,500

                                     Interest expenses- 8,500

                                     utilities expenses- 2,700

                                    Insurance expenses- 4,400

                                     Supplies expenses- 300

                                    Depreciation expenses- 8,200

3. close all dividend to Reatined eranings account

June 30            retained eranings accont......Dr- 27,300

                                   To        Dividend..............................- 27,300

4. close income summary to the retained earning account

June 30,            retained earning acconut.....Dr- 1,900

                               To, Income summary...................-1,900