> Problems Group A g Objectives 1.3,4 P4-29A Preparing financial statements incl

Question

> Problems Group A g Objectives 1.3,4 P4-29A Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entrics, and preparing a post-closing trial balance 1 Net Loss $(9,500) The adjustedl trial balance of Erickson Real Estate Appraisal at June 30, 2018, follows: ERICKSON REAL ESTATE APPRAISAL Adjusted Trial Balance June 30, 2018 Balance Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable (long-term Common Stock Retained Earnings Dividends Service Revenue Insurance Expense Salaries Expense Supplies Expense interest Expense Utilities Expense Depreciation Expense-Building Total Credit s 4,600 5,300 1.500 1,700 13,000 82,000 s 25,200 18,700 8,500 2,400 7,600 40,000 3,000 2.300 39, 500 48, 100 4,400 33,500 300 8,500 2,700 8,200 193,000 193,000 Requirements 1. Prepare the company's income statement for the year ended June 30, 2018 2. Prepare the company's statement of retained carnings for the year ended June 30, 2018. 3. Prepate the company's classificd balanee sheet in report form at June 30, 2018, 4. Journalize the closing entries 5. Open the Tacounts using the balances from the udjusted trial balance, and the closing entries to the Taccounts 6. Prepare the company's post-elosing trial balance at June 30, 2018

Explanation / Answer

Income Statement & Retained Earnings : Service Revenue 48100 Less: Expenses: Insurance 4400 salaries 33500 supplies 300 interest 8500 Utilties 2700 Depreciation 8200 Total expense 57600 Net Income (loss) -9500 add: RE - OB 39500 Less:Dividends -27300 RE - CB 2700 Balance Sheet: Assets: Cash 4600 AR 5300 Off. Supplies 1500 Prepaid Insurance 1700 Current assets 13100 Land 13000 Building 82000 Less: Acc dep - building -25200 Total Assets: 82900 Liabilities and SH Eq.: AP 18700 Int. Payable 8500 Sal Payable 2400 Unearned Rev. 7600 Current Liabilities 37200 LT Notes payable 40000 SH Eq.: CS 3000 RE 2700 Total SH Eq. 5700   Total Liabilities & SH Eq. 82900 Closing journal entries: Debit $ Credit $ Service Revenue 48100 Income summary 48100 Income Summary 57600 Insurance expense 4400 Salaries expense 33500 Supplies expense 300 Interest expense 8500 Utilities expense 2700 Depreciation expense 8200 Retained Earnings 9500 Income Summary 9500 Closing Trial Balance: Accounts Titles Debit $ Credit$ Cash 4600 AR 5300 Off. Supplies 1500 Prepaid Insurance 1700 Land 13000 Building 82000 Acc. Dep - Building 25200 AP 18700 Int.Payable 8500 Salary Payable 2400 Unearned Revenue 7600 Notes Payable 40000 Common Stock 3000 Retained Earnings    2700 Total 108100 108100

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