Elizabeth Soltis owns and operates Aunt Ibby's Styling Salon. A year-end work sheet is provided below. Use this information to complete this exercise.
Aunt Ibby’s Styling Salon |
Worksheet |
For Year Ended December 31, 20-- |
1 |
TRIAL BALANCE |
TRIAL BALANCE |
ADJUSTMENTS |
ADJUSTMENTS |
ADJUSTED TRIAL BALANCE |
ADJUSTED TRIAL BALANCE |
INCOME STATEMENT |
INCOME STATEMENT |
BALANCE SHEET |
BALANCE SHEET |
|
2 |
ACCOUNT TITLE |
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
3 |
Cash |
940.00 |
940.00 |
940.00 |
|||||||
4 |
Styling Supplies |
1,500.00 |
(a) 1,450.00 |
50.00 |
50.00 |
||||||
5 |
Prepaid Insurance |
800.00 |
(b) 650.00 |
150.00 |
150.00 |
||||||
6 |
Salon Equipment |
4,500.00 |
4,500.00 |
4,500.00 |
|||||||
7 |
Accumulated Depreciation-Salon Equipment |
(d) 900.00 |
900.00 |
900.00 |
|||||||
8 |
Accounts Payable |
225.00 |
225.00 |
225.00 |
|||||||
9 |
Wages Payable |
(c) 40.00 |
40.00 |
40.00 |
|||||||
10 |
Elizabeth Soltis, Capital |
2,765.00 |
2,765.00 |
2,765.00 |
|||||||
11 |
Elizabeth Soltis, Drawing |
12,000.00 |
12,000.00 |
12,000.00 |
|||||||
12 |
Styling Fees |
32,000.00 |
32,000.00 |
32,000.00 |
|||||||
13 |
Wages Expense |
8,000.00 |
(c) 40.00 |
8,040.00 |
8,040.00 |
||||||
14 |
Rent Expense |
6,000.00 |
6,000.00 |
6,000.00 |
|||||||
15 |
Styling Supplies Expense |
(a) 1,450.00 |
1,450.00 |
1,450.00 |
|||||||
16 |
Phone Expense |
450.00 |
450.00 |
450.00 |
|||||||
17 |
Utilities Expense |
800.00 |
800.00 |
800.00 |
|||||||
18 |
Insurance Expense |
(b) 650.00 |
650.00 |
650.00 |
|||||||
19 |
Depreciation Expense—Salon Equipment |
(d) 900.00 |
900.00 |
900.00 |
|||||||
20 |
$34,990.00 |
$34,990.00 |
$3,040.00 |
$3,040.00 |
$35,930.00 |
$35,930.00 |
18,290.00 |
32,000.00 |
17,640.00 |
3,930.00 |
|
21 |
Net Income |
13,710.00 |
13,710.00 |
||||||||
22 |
$32,000.00 |
$32,000.00 |
$17,640.00 |
$17,640.00 |
Required:
. | prepare adjusting entries and closing entries. |
Prepare an income statement. | |
Prepare the statement of owner's equity. Soltis made no additional investments during the year. | |
Prepare the balance sheet. |
The answer has been presented in the supporting sheets. All the parts has been solved with detailed explanation and format. For detailed answers refer to the supporting sheets.
L
Elizabeth Soltis owns and operates Aunt Ibby's Styling Salon. A year-end work sheet is provided below....