Chapter 5, Problem 5PB

Tom’s Catering Services prepared the following work sheet for the year ended December 31, 20--.

Required

1. Complete the work sheet. (Skip this step if using QuickBooks or general ledger.)

2. Prepare an income statement.

3. Prepare a statement of owner’s equity; assume that there was an additional investment of $2,500 on December 1. (Skip this step if using QuickBooks. The additional investment assumption has already been completed in the data file.)

4. Prepare a balance sheet.

5. Journalize the closing entries with the four steps in the correct sequence.

6. Prepare a post-closing trial balance. (For QuickBooks, select the trial balance report, then modify the report name to Post-Closing Trial Balance.)

Check Figure

Net income, $19,567