The following trail balance and additional data are for Maverick Property Management Company: MAVERICK PROPERTY MANAGEMENT COMPANY Trial Balance December 31 Debits Credits $ $ Cash 424,000 Prepaid Rent 28,800 Prepaid Insurance 7,680 Supplies on Hand 2,400 Office Equipment 24,000 Accumulated Depreciation—Office Equipment 5,760 Automobiles 64,000 Accumulated Depreciation—Automobiles 16,000 Accounts Payable 2,880 Unearned Management Fees 12,480 Capital Stock 360,000 Retained Earnings, January 1 120,640 Dividends 28,000 Commissions Revenue 260,000 Management Fee Revenue 19,200 Salaries Expense 199,840 Advertising Expense 2,400 Gas and Oil Expense 14,240 Miscellaneous Expense 1,600 $796,960 $796,960 Additional Information: Insurance expense for the year, $3,840 Rent expense for the year, $19,200 Depreciation expense amounted as follows: Office equipment $2,880 Automobiles $12,800 Unpaid salaries were accounted as $26,640 at 31st December Supplies on hand at December 31st, $1000 Further unearned management fee was received and recorded on Nov 1st. The advance payment covered six months management of an apartment building. Required: Prepare the adjusting journal entries and post. Prepare the adjusted trial balance. Prepare an income statement. Prepare closing entries and post. Prepare a post-closing trial balance.
The following trail balance and additional data are for Maverick Property Management Company:
MAVERICK PROPERTY MANAGEMENT COMPANY
December 31
Debits Credits
$ $
Cash 424,000
Prepaid Rent 28,800
Prepaid Insurance 7,680
Supplies on Hand 2,400
Office Equipment 24,000
Automobiles 64,000
Accumulated Depreciation—Automobiles 16,000
Accounts Payable 2,880
Unearned Management Fees 12,480
Capital Stock 360,000
Dividends 28,000
Commissions Revenue 260,000
Management Fee Revenue 19,200
Salaries Expense 199,840
Advertising Expense 2,400
Gas and Oil Expense 14,240
Miscellaneous Expense 1,600
$796,960 $796,960
Additional Information:
Insurance expense for the year, $3,840
Rent expense for the year, $19,200
Depreciation expense amounted as follows:
- Office equipment $2,880
- Automobiles $12,800
Unpaid salaries were accounted as $26,640 at 31st December
Supplies on hand at December 31st, $1000
Further unearned management fee was received and recorded on Nov 1st. The advance payment covered six months management of an apartment building.
Required:
- Prepare the
adjusting journal entries and post. - Prepare the adjusted trial balance.
- Prepare an income statement.
- Prepare closing entries and post.
- Prepare a post-closing trial balance.
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