The accountant for Gwiz consulting prepared the following “adjusted” trial balan

Question

The accountant for Gwiz consulting prepared the following “adjusted” trial balance at December 31 2000, after one year of operations: Assume no dividends were prepared nor paid in 2000.


Debit ($)
Credit ($)
Cash

5,400


Accounts Receivable

4,200


Unexpired Insurance

1,800


Office Equipment

18,000


Accumulated Depreciation: Office Equipment


300

Unearned Consulting Fees


3000

Capital Stock


15,000

Retained Earnings, January 1,st 2000


0

Dividends

3,000


Consulting Fees Earned


25,000

Salaries Expense

7,400


Utilities Expense

1,400


Rent Expense

1,800


Depreciation
Expense
300



$43,300
$43,300



Prepare the Closing Statement for Gwiz Consulting and the Statement of Retained Earnings.

Explanation / Answer

If Dividends

If Dividends

paid

not paid

0

0

$14,100

$14,100

$3,000

0

$11,100

$14,100

Income statement: Consulting fee earned $25,000 Salaries 7400 Utiliti expense 1400 Rent expense 1800 Depreciation expense 300 Total expense $10,900 Net Income $14,100

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