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Business
Accounting
Account Titles Dr. Cr. Dr. Cr. Cash 13,800 13,800 Accounts Receivable 28,300 28,300 Prepaid Insurance 3,600 2,100 Land 67,000 67,000 Buildings 127,000 127,000 Equipment 59,000 59,000 Accounts Payable 12,500 12,500 Unearned Rent Revenue 6,000 1,000 Mortgage Payable Owner's Capital 120,000 120,000 144,000 144,000 Owner's Drawings 22,000 22,000 Service Revenue 90,700 90,700 Rent Revenue 29,000 34,000 Salaries and Wages Expense Advertising Expense 42,000 42,000 20,500 20,500 Utilities Expense 19,000 19,000 Totals 402,200 402,200 Insurance Expense 1,500 Depreciation Expense Accumulated Depreciation–Buildings Accumulated Depreciation-Equipment 6,600 3,000 3,600 Interest Expense Interest Payable 10,000 10,000 Totals 418,800 418,800

Account Titles Dr. Cr. Dr. Cr. Cash 13,800 13,800 Accounts Receivable 28,300 28,300 Prepaid Insurance 3,600 2,100 Land 67,000 67,000 Buildings 127,000 127,000 Equipment 59,000 59,000 Accounts Payable 12,500 12,500 Unearned Rent Revenue 6,000 1,000 Mortgage Payable Owner's Capital 120,000 120,000 144,000 144,000 Owner's Drawings 22,000 22,000 Service Revenue 90,700 90,700 Rent Revenue 29,000 34,000 Salaries and Wages Expense Advertising Expense 42,000 42,000 20,500 20,500 Utilities Expense 19,000 19,000 Totals 402,200 402,200 Insurance Expense 1,500 Depreciation Expense Accumulated Depreciation–Buildings Accumulated Depreciation-Equipment 6,600 3,000 3,600 Interest Expense Interest Payable 10,000 10,000 Totals 418,800 418,800

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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Rusthe Management Services began business on January 1, 2022, 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. (image is attached)

Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment next year.)
a. Total current assets $44,200

(a) Journalize the adjusting entries.
(b) Journalize the closing entries.
(c) Prepare a post-closing trial balance.
  (d) Post-closing trial balance $297,200

Trial Balance Adjusted Trial Balance Account Titles Dr. Cr. Dr. Cr. Cash 13,800 13,800 Accounts Receivable 28,300 28,300 Prepaid Insurance 3,600 2,100 Land 67,000 67,000 Buildings Equipment Accounts Payable 127,000 127,000 59,000 59,000 12,500 12,500 Unearned Rent Revenue 6,000 1,000 Mortgage Payable Owner's Capital 120,000 120,000 144,000 144,000 Owner's Drawings 22,000 22,000 Service Revenue 90,700 90,700 Rent Revenue 29,000 34,000 Salaries and Wages Expense 42,000 42,000 Advertising Expense 20,500 20,500 Utilities Expense 19,000 19,000 Totals 402,200 402,200 Insurance Expense 1,500 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 6,600 3,000 3,600 Interest Expense 10,000 Interest Payable 10,000 Totals 418,800 418,800
Transcribed Image Text:Trial Balance Adjusted Trial Balance Account Titles Dr. Cr. Dr. Cr. Cash 13,800 13,800 Accounts Receivable 28,300 28,300 Prepaid Insurance 3,600 2,100 Land 67,000 67,000 Buildings Equipment Accounts Payable 127,000 127,000 59,000 59,000 12,500 12,500 Unearned Rent Revenue 6,000 1,000 Mortgage Payable Owner's Capital 120,000 120,000 144,000 144,000 Owner's Drawings 22,000 22,000 Service Revenue 90,700 90,700 Rent Revenue 29,000 34,000 Salaries and Wages Expense 42,000 42,000 Advertising Expense 20,500 20,500 Utilities Expense 19,000 19,000 Totals 402,200 402,200 Insurance Expense 1,500 Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 6,600 3,000 3,600 Interest Expense 10,000 Interest Payable 10,000 Totals 418,800 418,800
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