Question

Flint Inc. operates a cable television system. At December 31, 2019, the following unadjusted account balances were available:

Cash	$ 2,000	Common Stock	$300,000
Accounts Receivable	89,000	Retained Earnings, 12/31/2018	14,700
Supplies	5,000	Dividends	28,000
Land	37,000	Service Revenue	985,000
Buildings	209,000	Royalties Expense	398,000
Accumulated Depreciation (Buildings)	40,000	Property Taxes Expense	10,500
Equipment	794,000	Wages Expense	196,000
Accumulated Depreciation (Equipment)	262,000	Utilities Expense	34,000
Other Assets	19,700	Miscellaneous Expense	44,000
Accounts Payable	29,500	Interest Expense	15,000
Notes Payable (due in 2023)	250,000

The following data are available for adjusting entries:

a.	At year end, $1,500 of office supplies remain unused.
b.	Annual depreciation on the building is $20,000.
c.	Annual depreciation on the equipment is $150,000.
d.	The interest rate on the note is 8%. Four months’ interest is unpaid and unrecorded at December 31, 2019.
e.	At December 31, 2019, services of $94,000 have been performed but are unbilled and unrecorded.
f.	Utility bills of $2,800 are unpaid and unrecorded at December 31, 2019.
g.	Income taxes of $49,633 were unpaid and unrecorded at year end.

	Required:
1.	Prepare a worksheet for Flint.
2.	Prepare an income statement, a retained earnings statement, and a classified balance sheet for Flint.
3.	Prepare the closing entries. unt Descriptions Labels Current assets Current liabilities December 31, 2019 Expenses For the year ended December 31, 2019 Long-term liabilities Property, plant, and equipment Stockholders’ equity Amount Descriptions Dividends Net income Net loss Retained earnings, December 31, 2019 Retained earnings, January 1, 2019 Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders’ equity Total property, plant, and equipment Total stockholders’ equity

Answer 1

Flint Inc. Worksheet For the Year Ended December 31, 2019 Unadjusted TB Adjustments Adjusted TB Balance Sheet Income Statement Account Title Credit Credit Debit Debit Credit Debit Credit Debit Debit Credit Cash Accounts Receivable Supplies Land Building Accumulated Dep. Building $2,000 $2,000 $2,000 $183,000 $1,500 $89,000 $5,000 $37,000 $94,000 $183,000 $1,500 $3,500 $37,000 $37,000 $209,000 $209,000 $209,000 $40,000 $20,000 $60,000 $60,000 $794,000 $794,000 Equipment Accumulated Dep. Equipment Other Assets $794,000 $150,000 $262,000 $412,000 $412,000 $19,700 $19,700 $19,700 Accounts payable $29,500 $29,500 $29,500 Notes Payable (Due in 2023) Common Stock Retained Earnings Dividends $250,000 $300,000 $14,700 $250,000 $250,000 $300,000 $300,000 $14,700 $14,700 $28,000 $28,000 $28,000 Service Revenue $985,000 $94,000 $1,079,000 $1,079,000

Royalties Expense Property Taxes Expense Wages Expense Utilities Expense $398,000 $10,500 $196,000 $36,800 $398,000 $398,000 $10,500 $196,000 $10,500 $196,000 $34,000 $2,800 $36,800 Miscellaneous Expense $44,000 $15,000 $1,881,200 $1,881,200 $103,467 $44,000 $21,667 $267,500 $1,981,167$2,145,200 $44,000 $21,667 $6,667 Interest Expense TOTALS $706,967 $1,079,000 $170,000 $1,274,200 $1,066,200 Depreciation Expense Interest payable $170,000 $170,000 $6,667 $6,667 $6,667 $2,800 $2,800 $2,800 Utilities payable $49,633 $49,633 $49,633 Income tax expense Income tax payable Supplies Expense $49,633 $49,633 $49,633 $3,500 $3,500 $326,600 $2,204,300$2,204,300 Net Income (Balancing figure) $148,900 $3,500 $930,100 $1,079,000 $1,274,200 $1,125,300 $148,900 GRAND TOTALS $1,079,000 $1,079,000$1,274,200 $1,274,200 $326,600 TOTALS

Flint Inc. Flint Inc. Multi-Step Income Statement Statement of Retained Earnings For the Year Ended December 31, 2019 For the Year Ended December 31, 2019 $1,079,000 $14,700 Service Revenue Retained Earnings Beginning Balance $148,900 [Ref: Income Statement] Add: Net Income Expenses: $398,000 -$28,000 Royalties Expense Less: Dividends $10,500 Retained Earnings $120,900 Property Taxes Expense Net Increase $196,000 $135,600 Wages Expense Retained Earnings - Ending Balance $36,800 Utilities Expense $44,000 Miscellaneous Expense $21,667 Interest Expense $170,000 Depreciation Expense $49,633 Income tax expense Supplies Expense $3,500 Total Administrative Expenses $930,100 $148,900 Net Income

Flint Inc. Classified Balance Sheet At December 31, 2019 Liabilities & Owners' Equity Assets Current Liabilities: Current Assets: $2,000 Accounts Payable $29,500 Cash $183,000 Utilities Payable Interest Payable $2,800 Accounts receivable $1,500 $6,667 Supplies Total Current Assets $186,500 $49,633 Income taxes Payable Plant, Property & Equipment $88,600 Total Current Liabilities Long-term Liabilities: Note Payable $37,000 Land $209,000 $250,000 Buildings Less: Accum. Dep. Build. -$60,000 $149,000 $338,600 Total Liabilities Owners' Equity: Equipment $794,000 Common Stock $300,000 $135,600 Less: Accum. Dep. Equip. -$412,000 $382,000 $568,000 Retained Earnings $435,600 [Ref: Statement of Ret. Earnings] Other Assets $19,700 $774,200 $774,200 Total Liabilities & Owners' equity Total Assets