12th Edition

ISBN: 9780134487212

Author: MILLER-NOBLES

Publisher: PEARSON CO

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Textbook Question

Chapter 4, Problem P4.38BPGB

Completing the accounting cycle from adjusting entries to post-closing trial balance with an optional worksheet

Learning Objectives 1, 2, 3,4,5,6

5. Net Income $17,380

The unadjusted trial balance of Watson Anvils at December 31, 2018, and the data for the adjustments follow:

Chapter 4, Problem P4.38BPGB, Completing the accounting cycle from adjusting entries to post-closing trial balance with an

Adjustment data

Unearned Revenue still unearned at December 31,$3,600
Prepaid Rent still in force at December 31, $2,000.
Office Supplies used$600.
Depreciation, $400.
Accrued Salaries Expense at December 31, $180.

Requirements

Open the T-accounts using the balances in the unadjusted trial balance.
Complete the worksheet for the year ended December 31, 2018 (optional).
Prepare the adjusting entries, and post to the accounts.
Prepare an adjusted trial balance.
Prepare the income statement, the statement of owner's equity, and the classified balance sheet in report form. Assume that there were no contributions made by the owner during the year.
Prepare the closing entries, and post to the accounts.
Prepare a post-closing trial balance.
Calculate the current ratio for the company.

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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Chapter 4, Problem P4.37BPGB

Chapter 4, Problem P4.39BPGB

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