Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year: Beacons Company End-of-Period Spreadsheet For the Year Ended December 31, 20Y5 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,400 10,400 Accounts Receivable 39,300 (a) 9,200 48,500 Prepaid Insurance 4,400 (b) 3,150 1,250 Supplies 2,700 (c) 2,180 520 Land 98,000 98,000 Building 423,000 423,000 Accumulated Depreciation-Building 205,300 (d) 14,000 219,300 Equipment 107,000 107,000 Accumulated Depreciation-Equipment 85,100 (e) 4,800 89,900 Accounts Payable 15,800 15,800 Salaries and Wages Payable (f) 4,000 4,000 Unearned Rent 2,400 (g) 1,600 800 Common Stock 80,000 80,000 Retained Earnings 151,440 151,440 Dividends 10,000 10,000 Fees Earned 363,400 (a) 9,200 372,600 Rent Revenue (g) 1,600 1,600 Salaries and Wages Expense 158,800 (f) 4,000 162,800 Advertising Expense 21,500 21,500 Utilities Expense 15,300 15,300 Depreciation Expense-Building (d) 14,000 14,000 Repairs Expense 8,900 8,900 Depreciation Expense-Equipment (e) 4,800 4,800 Insurance Expense (b) 3,150 3,150 Supplies Expense (c) 2,180 2,180 Miscellaneous Expense 4,140 4,140 903,440 903,440 38,930 38,930 935,440 935,440 Required: 1. Prepare an income statement for the year ended December 31, 20Y5. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. 2. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. 3. Prepare a balance sheet as of December 31, 20Y5. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year: Beacons Company End-of-Period Spreadsheet For the Year Ended December 31, 20Y5 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,400 10,400 Accounts Receivable 39,300 (a) 9,200 48,500 Prepaid Insurance 4,400 (b) 3,150 1,250 Supplies 2,700 (c) 2,180 520 Land 98,000 98,000 Building 423,000 423,000 Accumulated Depreciation-Building 205,300 (d) 14,000 219,300 Equipment 107,000 107,000 Accumulated Depreciation-Equipment 85,100 (e) 4,800 89,900 Accounts Payable 15,800 15,800 Salaries and Wages Payable (f) 4,000 4,000 Unearned Rent 2,400 (g) 1,600 800 Common Stock 80,000 80,000 Retained Earnings 151,440 151,440 Dividends 10,000 10,000 Fees Earned 363,400 (a) 9,200 372,600 Rent Revenue (g) 1,600 1,600 Salaries and Wages Expense 158,800 (f) 4,000 162,800 Advertising Expense 21,500 21,500 Utilities Expense 15,300 15,300 Depreciation Expense-Building (d) 14,000 14,000 Repairs Expense 8,900 8,900 Depreciation Expense-Equipment (e) 4,800 4,800 Insurance Expense (b) 3,150 3,150 Supplies Expense (c) 2,180 2,180 Miscellaneous Expense 4,140 4,140 903,440 903,440 38,930 38,930 935,440 935,440 Required: 1. Prepare an income statement for the year ended December 31, 20Y5. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. 2. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. 3. Prepare a balance sheet as of December 31, 20Y5. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

	Beacons Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 20Y5
	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	10,400				10,400
Accounts Receivable	39,300		(a) 9,200		48,500
Prepaid Insurance	4,400			(b) 3,150	1,250
Supplies	2,700			(c) 2,180	520
Land	98,000				98,000
Building	423,000				423,000
Accumulated Depreciation-Building		205,300		(d) 14,000		219,300
Equipment	107,000				107,000
Accumulated Depreciation-Equipment		85,100		(e) 4,800		89,900
Accounts Payable		15,800				15,800
Salaries and Wages Payable				(f) 4,000		4,000
Unearned Rent		2,400	(g) 1,600			800
Common Stock		80,000				80,000
Retained Earnings		151,440				151,440
Dividends	10,000				10,000
Fees Earned		363,400		(a) 9,200		372,600
Rent Revenue				(g) 1,600		1,600
Salaries and Wages Expense	158,800		(f) 4,000		162,800
Advertising Expense	21,500				21,500
Utilities Expense	15,300				15,300
Depreciation Expense-Building			(d) 14,000		14,000
Repairs Expense	8,900				8,900
Depreciation Expense-Equipment			(e) 4,800		4,800
Insurance Expense			(b) 3,150		3,150
Supplies Expense			(c) 2,180		2,180
Miscellaneous Expense	4,140				4,140
	903,440	903,440	38,930	38,930	935,440	935,440

Required:

1.	Prepare an income statement for the year ended December 31, 20Y5. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.
2.	Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles.
3.	Prepare a balance sheet as of December 31, 20Y5. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Refer to the Chart of Accounts for exact wording of account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
4.	Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
5.	Prepare a post-closing trial balance.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.