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2020, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows. Account Titles Cash Accounts Receivable Prepaid Insurance Land Buildings Rusthe Management Services Worksheet For the Year Ended December 31, 2020 Trial Balance Cr. a. Net income $25,100 b. Total current assets $44,200 Dr. 13,800 28,300 3,600 67,000 127,000 50 CHAPTER 4 Completing the Accounting Cycle Account Titles Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Owner's Drawings Service Revenue Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense Totals Insurance Expense Depreciation Expense Accumulated Depreciation Buildings Accumulated Depreciation Equipment Interest Expense Interest Payable Totals Adjusted Trial Balance Dr. 13,800 28,300 2,100 67,000 127,000 Dr. 59,000 Trial Balance Cr. 22,000 Cr. 42,000 20,500 19,000 402,200 classified balance sheet, entries, and post-closing trial balance. 12,500 6,000 120,000 144,000 90,700 29,000 402,200 Adjusted Trial Balance Dr. 59,000 22,000 42,000 20,500 19,000 1,500 6,600 10,000 418,800 Cr. 12,500 1,000 120,000 144,000 90,700 34,000 3,000 3,600 10,000 418,800 Instructions a. Prepare a complete worksheet. b. Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment next year.) c. Journalize the adjusting entries.

2020, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows. Account Titles Cash Accounts Receivable Prepaid Insurance Land Buildings Rusthe Management Services Worksheet For the Year Ended December 31, 2020 Trial Balance Cr. a. Net income $25,100 b. Total current assets $44,200 Dr. 13,800 28,300 3,600 67,000 127,000 50 CHAPTER 4 Completing the Accounting Cycle Account Titles Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Owner's Drawings Service Revenue Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense Totals Insurance Expense Depreciation Expense Accumulated Depreciation Buildings Accumulated Depreciation Equipment Interest Expense Interest Payable Totals Adjusted Trial Balance Dr. 13,800 28,300 2,100 67,000 127,000 Dr. 59,000 Trial Balance Cr. 22,000 Cr. 42,000 20,500 19,000 402,200 classified balance sheet, entries, and post-closing trial balance. 12,500 6,000 120,000 144,000 90,700 29,000 402,200 Adjusted Trial Balance Dr. 59,000 22,000 42,000 20,500 19,000 1,500 6,600 10,000 418,800 Cr. 12,500 1,000 120,000 144,000 90,700 34,000 3,000 3,600 10,000 418,800 Instructions a. Prepare a complete worksheet. b. Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment next year.) c. Journalize the adjusting entries.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P4.4

P4.4A (LO 1, 2, 4) Financial Statement Rusthe Management Services began business on January 1, 2020, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows. Account Titles Cash Accounts Receivable Prepaid Insurance Land Buildings Rusthe Management Services Worksheet For the Year Ended December 31, 2020 a. Net income $25,100 b. Total current assets $44,200 e. Post-closing trial balance. $297,200 Trial Balance Cr. 4-50 CHAPTER 4 Completing the Accounting Cycle Dr. 13,800 28,300 3,600 67,000 127,000 Account Titles Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Owner's Drawings Service Revenue Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense Totals Insurance Expense Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Interest Expense Interest Payable Totals Adjusted Trial Balance Dr. 13,800 28,300 2,100 67,000 127,000 c. Journalize the adjusting entries. d. Journalize the closing entries. e. Prepare a post-closing trial balance. Dr. 59,000 Trial Balance Cr. 22,000 Cr. 42,000 20,500 19,000 402,200 Complete worksheet; prepare classified balance sheet, entries, and post-closing trial balance. 12,500 6,000 120,000 144,000 90,700 29,000 402,200 Adjusted Trial Balance Dr. 59,000 22,000 42,000 20,500 19,000 1,500 6,600 10,000 418,800 Cr. 12,500 1,000 120,000 144,000 90,700 34,000 3,000 3,600 10,000 418,800 Instructions a. Prepare a complete worksheet. b. Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment next year.)
Transcribed Image Text:P4.4A (LO 1, 2, 4) Financial Statement Rusthe Management Services began business on January 1, 2020, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows. Account Titles Cash Accounts Receivable Prepaid Insurance Land Buildings Rusthe Management Services Worksheet For the Year Ended December 31, 2020 a. Net income $25,100 b. Total current assets $44,200 e. Post-closing trial balance. $297,200 Trial Balance Cr. 4-50 CHAPTER 4 Completing the Accounting Cycle Dr. 13,800 28,300 3,600 67,000 127,000 Account Titles Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Owner's Capital Owner's Drawings Service Revenue Rent Revenue Salaries and Wages Expense Advertising Expense Utilities Expense Totals Insurance Expense Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Interest Expense Interest Payable Totals Adjusted Trial Balance Dr. 13,800 28,300 2,100 67,000 127,000 c. Journalize the adjusting entries. d. Journalize the closing entries. e. Prepare a post-closing trial balance. Dr. 59,000 Trial Balance Cr. 22,000 Cr. 42,000 20,500 19,000 402,200 Complete worksheet; prepare classified balance sheet, entries, and post-closing trial balance. 12,500 6,000 120,000 144,000 90,700 29,000 402,200 Adjusted Trial Balance Dr. 59,000 22,000 42,000 20,500 19,000 1,500 6,600 10,000 418,800 Cr. 12,500 1,000 120,000 144,000 90,700 34,000 3,000 3,600 10,000 418,800 Instructions a. Prepare a complete worksheet. b. Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment next year.)
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