Outreach Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Outreach Signals Company prepared the following end-of-period spreadsheet at December 31, 20Y1, the end of the fiscal year:   Outreach Signals Company   End-of-Period Spreadsheet   For the Year Ended December 31, 20Y1   Unadjusted Trial Balance Adjustments Adjusted Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 20,500       20,500   Accounts Receivable 63,800   (a) 19,700   83,500   Prepaid Insurance 6,600     (b) 4,700 1,900   Supplies 4,700     (c) 3,540 1,160   Land 154,300       154,300   Building 787,000       787,000   Accumulated Depreciation-Building   402,000   (d) 14,200   416,200 Equipment 192,000       192,000   Accumulated Depreciation-Equipment   157,600   (e) 7,100   164,700 Accounts Payable   24,700       24,700 Salaries and Wages Payable       (f) 7,700   7,700 Unearned Rent   3,300 (g) 2,000     1,300 Inez Villanueva, Capital   375,000       375,000 Inez Villanueva, Drawing 16,000       16,000   Fees Earned   612,000   (a) 19,700   631,700 Rent Revenue       (g) 2,000   2,000 Salaries and Wages Expense 256,820   (f) 7,700   264,520   Advertising Expense 34,200       34,200   Utilities Expense 17,900       17,900   Depreciation Expense-Building     (d) 14,200   14,200   Repairs Expense 13,930       13,930   Depreciation Expense-Equipment     (e) 7,100   7,100   Insurance Expense     (b) 4,700   4,700   Supplies Expense     (c) 3,540   3,540   Miscellaneous Expense 6,850       6,850     1,574,600 1,574,600 58,940 58,940 1,623,300 1,623,300   Required: 1. Prepare an income statement for the year ended December 31. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. You will not need to enter colons (:) on the income statement. 2. Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 3. Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Enter all values as positive amounts. 4. Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 5. Prepare a post-closing trial balance.     Chart of Accounts     CHART OF ACCOUNTS Outreach Signals 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 Inez Villanueva, Capital 32 Inez Villanueva, Drawing   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 and Amount Descriptions     Labels   Current assets   Current liabilities   December 31, 20Y1   Expenses   For the Year Ended December 31, 20Y1   Property, plant, and equipment   Revenues   Amount Descriptions   Decrease in owner’s equity   Increase in owner’s equity   Net income   Net loss   Inez Villanueva, capital, January 1, 20Y1   Inez Villanueva, capital, December 31, 20Y1   Total assets   Total current assets   Total expenses   Total liabilities   Total liabilities and owner’s equity   Total property, plant, and equipment   Total revenues   Withdrawals       Income Statement

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Financial statements and closing entries
 
Instructions
Chart of Accounts
Labels and Amount Descriptions
Income Statement
Statement of Owner’s Equity
Balance Sheet
Journal
Post-Closing Trial Balance
 
 
 
 
Instructions
 
 
Outreach Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Outreach Signals Company prepared the following end-of-period spreadsheet at December 31, 20Y1, the end of the fiscal year:
  Outreach Signals Company
  End-of-Period Spreadsheet
  For the Year Ended December 31, 20Y1
  Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash 20,500       20,500  
Accounts Receivable 63,800   (a) 19,700   83,500  
Prepaid Insurance 6,600     (b) 4,700 1,900  
Supplies 4,700     (c) 3,540 1,160  
Land 154,300       154,300  
Building 787,000       787,000  
Accumulated Depreciation-Building   402,000   (d) 14,200   416,200
Equipment 192,000       192,000  
Accumulated Depreciation-Equipment   157,600   (e) 7,100   164,700
Accounts Payable   24,700       24,700
Salaries and Wages Payable       (f) 7,700   7,700
Unearned Rent   3,300 (g) 2,000     1,300
Inez Villanueva, Capital   375,000       375,000
Inez Villanueva, Drawing 16,000       16,000  
Fees Earned   612,000   (a) 19,700   631,700
Rent Revenue       (g) 2,000   2,000
Salaries and Wages Expense 256,820   (f) 7,700   264,520  
Advertising Expense 34,200       34,200  
Utilities Expense 17,900       17,900  
Depreciation Expense-Building     (d) 14,200   14,200  
Repairs Expense 13,930       13,930  
Depreciation Expense-Equipment     (e) 7,100   7,100  
Insurance Expense     (b) 4,700   4,700  
Supplies Expense     (c) 3,540   3,540  
Miscellaneous Expense 6,850       6,850  
  1,574,600 1,574,600 58,940 58,940 1,623,300 1,623,300
 
Required:
1. Prepare an income statement for the year ended December 31. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. You will not need to enter colons (:) on the income statement.
2. Prepare a statement of owner’s equity for the year ended December 31. No additional investments were made during the year. 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. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
3. Prepare a balance sheet as of December 31. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Refer to the Chart of Accounts and the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Enter all values as positive amounts.
4. Based upon the end-of-period spreadsheet, journalize the closing entries. Explanations should be omitted. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
5. Prepare a post-closing trial balance.
 
 
Chart of Accounts
 
 
CHART OF ACCOUNTS
Outreach Signals 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 Inez Villanueva, Capital
32 Inez Villanueva, Drawing
  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 and Amount Descriptions
 
 
Labels  
Current assets  
Current liabilities  
December 31, 20Y1  
Expenses  
For the Year Ended December 31, 20Y1  
Property, plant, and equipment  
Revenues  
Amount Descriptions  
Decrease in owner’s equity  
Increase in owner’s equity  
Net income  
Net loss  
Inez Villanueva, capital, January 1, 20Y1  
Inez Villanueva, capital, December 31, 20Y1  
Total assets  
Total current assets  
Total expenses  
Total liabilities  
Total liabilities and owner’s equity  
Total property, plant, and equipment  
Total revenues  
Withdrawals  
 
 
Income Statement
 
 
 
 
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