Preparing a single-step income statement. [10-15 min]Review the data given in Exercise.Req...

Preparing a single-step income statement. [10-15 min]

Review the data given in Exercise.

Requirement

1. Prepare Budget’s single-step income statement.

Journalizing closing entries [10-15 min]

The trial balance and adjustments columns of the worksheet of Budget Business Systems, Co., at March 31, 2012, follow:

Requirements

1. Compute the adjusted balance for each account that must be closed.

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2. Journalize the required closing entries at March 31, 2012.

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3. How much was Budget’s net income or net loss?