as the denominator), and (d) currell decimals for parts b and d 4-58 rial balanc
ID: 2553524 • Letter: A
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as the denominator), and (d) currell decimals for parts b and d 4-58 rial balances, ries, and ntements P3 Santo Company's adjusted trial balance on December 31. 2017, follows. SANTO COMPANY Adjusted Trial Balance December 31, 2017 Debit Credit Account Title No. s 14,450 101 Cash 125 Store supplies.... 128 Prepaid insurance 67 Equipment 168 Accumulated depreciation-Equipment. . . . … 5,140 31,000 201 Accounts payable. 301 P. Santo, Capital.. $ 8,000 1,500 2,700 35,650 210 Wages payable. 15,000 302 P. Santo, Withdrawals.. 401 Repair fees earned 612 Depreciation expense-Equipment. 623 Wages expense 637 Insurance expense. 640 Rent expense 651 Store supplies expense 690 Utilities expense 54,700 2,000 .26,400 3,600 1.200 1,960 Totals. $102,550 $102,550 ding capital 590 Required 1. Prepare an income statement and a statement of owner's equity for the year 2017, and a classified ba ance sheet at December 31, 2017. There are no owner investments in 2017 C trial balance 2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle o columns for closing entry information and the last two columns for a post-closing trial balance. e 3. Enter closing entry informa Analysis Component 4. Assume for this part only that Income Summary account (No. 901) as the last item in the trial balance. tion in the six-column table and prepare journal entries for it. a. None of the $600 insurance expense had expired during the year. Instead, assume it is a of the next period's insurance protection. b. There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $2.700 wage able accrual.) Describe the financial statement changes that would result from these two assumptions.Explanation / Answer
1 Income statement repair fees earned 54700 Expense Depreciation expense equipment 2000 Wages expense 26400 Insurance expense 600 Rent expense 3600 Stores supplies expense 1200 Utilities expense 1960 Total expense 35760 Net income 18940 2 Statement of Owners equity P. Santo's capital beginning balance 35650 Add Net income 18940 54590 Less P.santo's drawings 15000 P. Santo's capital ending balance 39590 3 Balance sheet Assets Current assets Cash 14450 Stores supplies 5140 Prepaid insurance 1200 Total current assets 20790 Property plant and equipment Equipment 31000 Accumlated depreciation equipment -8000 23000 Total assets 43790 Liabilities and owners equity Liabilities Current liabilities Accounts payable 1500 Wages payable 2700 Total current liabilities 4200 P.santo Capital 39590 Total liabilities and owners equity 43790 4 Closing entries a repair fees earned 54700 Income summary 54700 b Income summary 35760 Depreciation expense equipment 2000 Wages expense 26400 Insurance expense 600 Rent expense 3600 Stores supplies expense 1200 Utilities expense 1960 c Income summary 18940 P. Santo Capital 18940 d P.santo Capital 15000 P.Santo Drawings 15000
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