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

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

Problem 1Q

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Concept explainers

Question

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
	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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