Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2018, the end of the fiscal year: Lamp Light Company End-of-Period Spreadsheet For the Year Ended December 31, 2018 Unadjusted Trial BalanceAdjustmentsAdjusted Trial BalanceAccount TitleDr.Cr.Dr.Cr.Dr.Cr.Cash10,800.00 10,800.00 Accounts Receivable38,900.00 (a) 11,300.00 50,200.00 Prepaid Insurance4,200.00 (b) 3,000.001,200.00 Supplies2,730.00 (c) 2,250.00480.00 Land98,000.00 98,000.00 Building400,000.00 400,000.00 Accumulated Depreciation-Building 205,300.00 (d) 10,100.00 215,400.00Equipment101,000.00 101,000.00 Accumulated Depreciation-Equipment 85,100.00 (e) 6,680.00 91,780.00Accounts Payable 15,700.00 15,700.00Salaries and Wages Payable (f) 4,900.00 4,900.00Unearned Rent 2,100.00(g) 1,300.00 800.00Common Stock 75,000.00 75,000.00Retained Earnings 128,100.00 128,100.00Dividends10,000.00 10,000.00 Fees Earned 363,700.00 (a) 11,300.00 375,000.00Rent Revenue (g) 1,300.00 1,300.00Salaries and Wages Expense163,100.00 (f) 4,900.00 168,000.00 Advertising Expense21,700.00 21,700.00 Utilities Expense11,400.00 11,400.00 Depreciation Expense-Building (d) 10,100.00 10,100.00 Repairs Expense8,850.00 8,850.00 Depreciation Expense-Equipment (e) 6,680.00 6,680.00 Insurance Expense (b) 3,000.00 3,000.00 Supplies Expense (c) 2,250.00 2,250.00 Miscellaneous Expense4,320.00 4,320.00 875,000.00875,000.0039,530.0039,530.00907,980.00907,980.00 Required:1.Prepare an income statement for the year ended December 31, 2018. 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 retained earnings statement for the year ended December 31, 2018. 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, 2018. 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.CHART OF ACCOUNTSLamp Light CompanyGeneral Ledger ASSETS11Cash12Accounts Receivable13Prepaid Insurance14Supplies15Land16Building17Accumulated Depreciation-Building18Equipment19Accumulated Depreciation-Equipment LIABILITIES21Accounts Payable22Salaries and Wages Payable23Unearned Rent EQUITY31Common Stock32Retained Earnings33Dividends34Income Summary REVENUE41Fees Earned42Rent Revenue EXPENSES51Salaries and Wages Expense52Advertising Expense53Utilities Expense54Depreciation Expense-Building55Repairs Expense56Depreciation Expense-Equipment57Insurance Expense58Supplies Expense59Miscellaneous ExpenseLabels Current assets Current liabilities December 31, 2018 Expenses For the Year Ended December 31, 2018 Property, plant, and equipment Revenues Amount Descriptions Book value-building Book value-equipment Change in retained earnings Net income Net loss Retained earnings, December 31, 2018 Retained earnings, January 1, 2018 Total assets Total current assets Total expenses Total liabilities Total liabilities and stockholders’ equity Total property, plant, and equipment Total revenues Total stockholders’ equity 1. Prepare an income statement for the year ended December 31, 2018. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Besure to complete the statement heading. Use the list of Labels and Amount Descriptions for the comrect wording of text items other than account names. You will not needto enter colons (;) on the income statement.Lamp Light CompanyIncome Statement(Label): (Label)25 (Label)1011121314152. Prepare a retained earnings statement for the year ended December 31, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative numberusing 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 textentries. Refer to the Chart of Accounts for exact wording of account titles.Lamp Light CompanyRetained Earnings Statement(Label)23. Prepare a balance sheet as of December 31, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement headingRefer 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 ofaccount titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign.Lamp Light CompanyBalance Sheet(Label)Assets2 (Label)a (Label)101112131415 161713Liabilities19 (Label)2021222324Stockholders' Equity252627284. Based upon the end-of-period spreadsheet, joumalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQunClosing Entries12491011121314151417145. Prepare a post-closing trial balance.Lamp Light CompanyPOST-CLOSING TRIAL BALANCEDecember 31, 2018ACCOUNT TITLEDEBITCREDIT1 Cash2 Accounts Receivable3 Prepaid Insurance4 Supplies5 Land6 Building7 Accumulated Depreciation-Buildinga EquipmentAccumulated Depreciation-Equipment10 Accounts Payable11 Salaries and Wages Payable12 Unearned Rent13 Common Stock14 Retained Earnings15 Totals

Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2018, the end of the fiscal year: Lamp Light Company End-of-Period Spreadsheet For the Year Ended December 31, 2018 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,800.00 10,800.00 Accounts Receivable 38,900.00 (a) 11,300.00 50,200.00 Prepaid Insurance 4,200.00 (b) 3,000.00 1,200.00 Supplies 2,730.00 (c) 2,250.00 480.00 Land 98,000.00 98,000.00 Building 400,000.00 400,000.00 Accumulated Depreciation-Building 205,300.00 (d) 10,100.00 215,400.00 Equipment 101,000.00 101,000.00 Accumulated Depreciation-Equipment 85,100.00 (e) 6,680.00 91,780.00 Accounts Payable 15,700.00 15,700.00 Salaries and Wages Payable (f) 4,900.00 4,900.00 Unearned Rent 2,100.00 (g) 1,300.00 800.00 Common Stock 75,000.00 75,000.00 Retained Earnings 128,100.00 128,100.00 Dividends 10,000.00 10,000.00 Fees Earned 363,700.00 (a) 11,300.00 375,000.00 Rent Revenue (g) 1,300.00 1,300.00 Salaries and Wages Expense 163,100.00 (f) 4,900.00 168,000.00 Advertising Expense 21,700.00 21,700.00 Utilities Expense 11,400.00 11,400.00 Depreciation Expense-Building (d) 10,100.00 10,100.00 Repairs Expense 8,850.00 8,850.00 Depreciation Expense-Equipment (e) 6,680.00 6,680.00 Insurance Expense (b) 3,000.00 3,000.00 Supplies Expense (c) 2,250.00 2,250.00 Miscellaneous Expense 4,320.00 4,320.00 875,000.00 875,000.00 39,530.00 39,530.00 907,980.00 907,980.00 Required: 1. Prepare an income statement for the year ended December 31, 2018. 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 retained earnings statement for the year ended December 31, 2018. 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, 2018. 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.

Lamp Light Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Lamp Light Company prepared the following end-of-period spreadsheet at December 31, 2018, the end of the fiscal year: Lamp Light Company End-of-Period Spreadsheet For the Year Ended December 31, 2018 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,800.00 10,800.00 Accounts Receivable 38,900.00 (a) 11,300.00 50,200.00 Prepaid Insurance 4,200.00 (b) 3,000.00 1,200.00 Supplies 2,730.00 (c) 2,250.00 480.00 Land 98,000.00 98,000.00 Building 400,000.00 400,000.00 Accumulated Depreciation-Building 205,300.00 (d) 10,100.00 215,400.00 Equipment 101,000.00 101,000.00 Accumulated Depreciation-Equipment 85,100.00 (e) 6,680.00 91,780.00 Accounts Payable 15,700.00 15,700.00 Salaries and Wages Payable (f) 4,900.00 4,900.00 Unearned Rent 2,100.00 (g) 1,300.00 800.00 Common Stock 75,000.00 75,000.00 Retained Earnings 128,100.00 128,100.00 Dividends 10,000.00 10,000.00 Fees Earned 363,700.00 (a) 11,300.00 375,000.00 Rent Revenue (g) 1,300.00 1,300.00 Salaries and Wages Expense 163,100.00 (f) 4,900.00 168,000.00 Advertising Expense 21,700.00 21,700.00 Utilities Expense 11,400.00 11,400.00 Depreciation Expense-Building (d) 10,100.00 10,100.00 Repairs Expense 8,850.00 8,850.00 Depreciation Expense-Equipment (e) 6,680.00 6,680.00 Insurance Expense (b) 3,000.00 3,000.00 Supplies Expense (c) 2,250.00 2,250.00 Miscellaneous Expense 4,320.00 4,320.00 875,000.00 875,000.00 39,530.00 39,530.00 907,980.00 907,980.00 Required: 1. Prepare an income statement for the year ended December 31, 2018. 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 retained earnings statement for the year ended December 31, 2018. 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, 2018. 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

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Question

	Lamp Light Company
	End-of-Period Spreadsheet
	For the Year Ended December 31, 2018
	Unadjusted Trial Balance	Adjustments	Adjusted Trial Balance
Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	10,800.00				10,800.00
Accounts Receivable	38,900.00		(a) 11,300.00		50,200.00
Prepaid Insurance	4,200.00			(b) 3,000.00	1,200.00
Supplies	2,730.00			(c) 2,250.00	480.00
Land	98,000.00				98,000.00
Building	400,000.00				400,000.00
Accumulated Depreciation-Building		205,300.00		(d) 10,100.00		215,400.00
Equipment	101,000.00				101,000.00
Accumulated Depreciation-Equipment		85,100.00		(e) 6,680.00		91,780.00
Accounts Payable		15,700.00				15,700.00
Salaries and Wages Payable				(f) 4,900.00		4,900.00
Unearned Rent		2,100.00	(g) 1,300.00			800.00
Common Stock		75,000.00				75,000.00
Retained Earnings		128,100.00				128,100.00
Dividends	10,000.00				10,000.00
Fees Earned		363,700.00		(a) 11,300.00		375,000.00
Rent Revenue				(g) 1,300.00		1,300.00
Salaries and Wages Expense	163,100.00		(f) 4,900.00		168,000.00
Advertising Expense	21,700.00				21,700.00
Utilities Expense	11,400.00				11,400.00
Depreciation Expense-Building			(d) 10,100.00		10,100.00
Repairs Expense	8,850.00				8,850.00
Depreciation Expense-Equipment			(e) 6,680.00		6,680.00
Insurance Expense			(b) 3,000.00		3,000.00
Supplies Expense			(c) 2,250.00		2,250.00
Miscellaneous Expense	4,320.00				4,320.00
	875,000.00	875,000.00	39,530.00	39,530.00	907,980.00	907,980.00

Required:

1.	Prepare an income statement for the year ended December 31, 2018. 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 retained earnings statement for the year ended December 31, 2018. 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, 2018. 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.

CHART OF ACCOUNTS

Lamp Light Company

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Insurance
14	Supplies
15	Land
16	Building
17	Accumulated Depreciation-Building
18	Equipment
19	Accumulated Depreciation-Equipment

	LIABILITIES
21	Accounts Payable
22	Salaries and Wages Payable
23	Unearned Rent

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
34	Income Summary

	REVENUE
41	Fees Earned
42	Rent Revenue

	EXPENSES
51	Salaries and Wages Expense
52	Advertising Expense
53	Utilities Expense
54	Depreciation Expense-Building
55	Repairs Expense
56	Depreciation Expense-Equipment
57	Insurance Expense
58	Supplies Expense
59	Miscellaneous Expense

Labels
Current assets
Current liabilities
December 31, 2018
Expenses
For the Year Ended December 31, 2018
Property, plant, and equipment
Revenues
Amount Descriptions
Book value-building
Book value-equipment
Change in retained earnings
Net income
Net loss
Retained earnings, December 31, 2018
Retained earnings, January 1, 2018
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and stockholders’ equity
Total property, plant, and equipment
Total revenues
Total stockholders’ equity

1. Prepare an income statement for the year ended December 31, 2018. 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 comrect wording of text items other than account names. You will not need
to enter colons (;) on the income statement.
Lamp Light Company
Income Statement
(Label)
: (Label)
2
5 (Label)
10
11
12
13
14
15
2. Prepare a retained earnings statement for the year ended December 31, 2018. 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.
Lamp Light Company
Retained Earnings Statement
(Label)
2
3. Prepare a balance sheet as of December 31, 2018. 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.
Lamp Light Company
Balance Sheet
(Label)
Assets
2 (Label)
a (Label)
10
11
12
13
14
15

16
17
13
Liabilities
19 (Label)
20
21
22
23
24
Stockholders' Equity
25
26
27
28
4. Based upon the end-of-period spreadsheet, joumalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQun
Closing Entries
1
2
4
9
10
11
12
13
14
15
14
17
14
5. Prepare a post-closing trial balance.
Lamp Light Company
POST-CLOSING TRIAL BALANCE
December 31, 2018
ACCOUNT TITLE
DEBIT
CREDIT
1 Cash
2 Accounts Receivable
3 Prepaid Insurance
4 Supplies
5 Land
6 Building
7 Accumulated Depreciation-Building
a Equipment
Accumulated Depreciation-Equipment
10 Accounts Payable
11 Salaries and Wages Payable
12 Unearned Rent
13 Common Stock
14 Retained Earnings
15 Totals

Expert Solution

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Financial statements are defined as written records which convey the business activities as well as the financial performance of the company. These are often audited through firms, government agencies and accountants in order to ensure the accuracy and for tax purpose.

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