Chapter 4, Problem 5APSA

Problem 4-5A Preparing trial balances, closing entries, and financial statements C3 P2 P3

The adjusted trial balance of Karise Repairs on December 31 follows.

Required

1. Prepare an income statement and a statement of owner's equity for the year and a classified balance sheet at December 31. Note: The C. Karise,
Capital account balance was$33,000 on December 31 of the prior year.
Check (1) Ending capital balance, $47,750; Net income, $30,750
2. Enter the adjusted trial balance in the first two columns of a sis-column table. Use columns three and four for closing entry information and the last
two columns for a post-closing trial balance. Insert an Income Summary account as the last item in the trial balance.
(2) P-C trial balance totals, $67,350
3. Enter closing entry information in the six-column table and prepare journal entries for it.