(3) Using the following Adjusted Trial Balance, (1) prepare an Income Statement,
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Question
(3) Using the following Adjusted Trial Balance, (1) prepare an Income Statement, (2)
Statement of Retained Earnings (note that Retained Earnings has a beginning balance
of $78,600 as shown in the unadjusted Trial Balance), and (3) Balance Sheet.
(4) Prepare the three closing entries.
Watson Technical Institute
Adjusted Trial Balance
December 31, 2011
Debit Credit
Cash .................................................................. $ 26,000
Accounts receivable................................................ 7,500
Teaching supplies ................................................... 2,600
Prepaid insurance.................................................... 12,000
Prepaid rent............................................................ 0
Equipment ............................................................. 100,000
Accounts payable .................................................................... 36,000
Salaries payable............................................................................ 400
Unearned training fees.................................................................. 6,600
Common stock ............................................................................ 10,000
Retained earnings........................................................................ 78,600
Dividends.................................................................. 40,000
Tuition fees earned.................................................. .....................109,500
Training fees earned................................................ ......................42,400
Salaries expense ..................................................... 48,400
Insurance expense................................................... 3,000
Rent expense............................................................ 24,000
Teaching supplies expense .................................... 7,400
Advertising expense................................................ 7,000
Utilities expense...................................................... 5,600 _______
Totals .................................................................... $283,500.... $283,500
Explanation / Answer
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