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. A. Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment next year.) a. Total current assets $44,200B. Journalize the adjusting entries.C. Journalize the closing entries.D. Prepare a post-closing trial balance. d. Post-closing trial balance $297,200Complete all steps in accounting cycle. Trial BalanceAdjusted Trial BalanceAccount TitlesDr.Cr.Dr.Cr.Cash13,80013,800Accounts Receivable28,30028,300Prepaid Insurance3,6002,100Land67,00067,000BuildingsEquipmentAccounts Payable127,000127,00059,00059,00012,50012,500Unearned Rent Revenue6,0001,000Mortgage PayableOwner's Capital120,000120,000144,000144,000Owner's Drawings22,00022,000Service Revenue90,70090,700Rent Revenue29,00034,000Salaries and Wages Expense42,00042,000Advertising Expense20,50020,500Utilities Expense19,00019,000Totals402,200 402,200Insurance Expense1,500Depreciation ExpenseAccumulated Depreciation-BuildingsAccumulated Depreciation-Equipment6,6003,0003,600Interest Expense10,000Interest Payable10,000Totals418,800418,800

Name: Rusthe Management Services began business on January 1, 2022, with a c
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Description: 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 adjust

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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.

A. 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
B. Journalize the adjusting entries.
C. Journalize the closing entries.
D. Prepare a post-closing trial balance.
d. Post-closing trial balance $297,200

Complete all steps in accounting cycle.

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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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The post closing trial balance is prepared after closing all the temporary accounts of the business including revenues, expenses, dividend accounts.

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