Preparing a worksheet, financial statements, and closing entries [50-60 min]The trial bala...

Preparing a worksheet, financial statements, and closing entries [50-60 min]

The trial balance of Fugazy Investment Advisers, Inc., at December 31, 2012, follows:

Adjustment data at December 31, 2012:

a. Unearned service revenue earned during the year, $500.

---

b. Supplies on hand, $1,000.

---

c. Depreciation for the year, $6,000.

---

d. Accrued salary expense, $1,000.

---

e. Accrued service revenue, $4,000.

Requirements

1. Enter the account data in the Trial Balance columns of a worksheet, and complete the worksheet through the Adjusted Trial Balance. Key each adjusting entry by the letter corresponding to the data given. Leave a blank line under Service revenue.

---

2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in account format.

---

3. Prepare closing journal entries from the worksheet.

---

4. Did the company have a good or a bad year during 2012? Give the reason for your answer. (Challenge)