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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
P4.4
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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