Chapter 4, Problem P4.41PS

To determine

Concept Introduction:

While accounting for a new business, or already running business, different statements are prepared in order to keep an account of all the transactions and to know the financial position of the business in terms of its, incomes, expenses, assets, liabilities etc.

The statements that are preparing while accounting for the business are –

• A worksheet (optional)

• Income statement

• Statement of owner’s equity

• Classified Balance sheet

• Post-trial balance after adjusting entries

A worksheet:

A worksheet can be defined as a statement explaining the effects of the adjusting entries by the year-end and the post-trial balance incorporating the effects of the adjusting entries.

An Income statement:

An income statement can be defined as the statement explaining the company’s financial performance over a specific accounting period. The income or revenues are recorded on the income statement along with the expenses incurred for the period.

Statement of owner’s equity:

A statement of owner’s equity represents the changes in the capital of the owner of the business including the additions in form of net income and subtractions in the form of withdrawals.

Classified Balance sheet:

A balance sheets represents the financial position of a business in terms of its assets, liabilities and owner’s equity.

Post-trial balance after adjusting entries:

A post-trial balance after adjusting entries can be defined as the trial balance prepared after incorporating all the adjusting entries for the year.

Requirement 1

To prepare:

A worksheet as on November 30, 2017.

To determine

Requirement 2

To prepare:

1. Income statement

2. Statement of owner’s equity

3. Classified Balance sheet

To determine

Requirement 3

To prepare:

1. Prepare closing entries

2. Determine each closing amount

To determine

Requirement 4

To prepare:

Post-closing trial balance