all the requirements 226 chapter 4 > Problems Group A P4-29A Preparing financial
ID: 2562373 • Letter: A
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all the requirements
226 chapter 4 > Problems Group A P4-29A Preparing financial ified balance in report form, preparing and posting closing entries, and e sh post-closing trial balance statements including a classified b Learning Objectives 1, 3,4 prepa 1 Net Loss $(9,500) The adjusted trial balance of Erickson Real Estare Appraisal at June 30 ERICKSON REAL ESTATE APPRAISAL Adjusted Trial Balance June 30, 2018 Balance Debit Credit 4,600 5,300 1,500 1,700 13,000 82,000 Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Land Building s 25,200 18,700 8,500 2,400 Accumulated Depreciation-Building Accounts Payable Interest Payable salaries Payable Unearned Revenue 40,000 42,500 Notes Payable (long-term) Erickson, Capital 27,300 Erickson, Withdrawals Service Revenue Insurance Expense Salaries Expense Supplies Expense Interest Expense Utilities Expense 4400 48, 100 4,400 33,500 300 8,500 2,700 8,200 Depreciation Expense-Building Total 193000193,000 Requirements 1. Prepare the company's income statement for the year ended June 30, 2018. 2. Prepare the company's statement of owner's equity for the year ended June 30, 2018. Assume that there were no contributions made by the owner during the yeat. 3. Prepare the company's classfied balance sheet in report form at June 30, 2018 4. Journalize the closing entries. 5. Open the T-accounts using the balances from the adjusted trial balance, and pos the closing entries to the T-accounts. 6. Prepare the company's post-closing trial balance at June 30, 2018Explanation / Answer
1) Prepare the company's income statement for the year ended June 30, 2018.
ERICKSON ESTAE APPRAISAL
Income statement
For the year ended June 30, 2018
Service revenue
48100
Operating expenses
Insurance expense
4400
Salaries expense
33500
Supplies expense
300
Interest expense
8500
Utilities expense
2700
Depreciation expense - Building
8200
Total operating expense
57600
Net Income / (loss)
-9500
2) Prepare the company's statement of owner's equity for the year ended June 30, 2018
ERICKSON ESTAE APPRAISAL
Statement of Owner's equity
For the year ended June 30, 2018
Balance - Beginning
42500
Less: Loss for the year
9500
Withdrawals
27300
36800
Balance - Ending
5700
3) Prepare the Company's classified balance sheet at June 30, 2018
ERICKSON ESTAE APPRAISAL
BALANCE SHEET
As on June 30, 2018
ASSETS
Current Assets
Cash
4600
Accounts receivable
5300
Office Supplies
1500
Prepaid Insurance
1700
Total Current Assets
13100
Property, Plant and Equipment
Land
13000
Building
82000
Less: Accumulated depreciation
25200
56800
Total Assets
82900
Liabilities and Owner's Capital
Current Liabilities
Accounts Payable
18700
Interest Payable
8500
Salaries Payable
2400
Unearned revenue
7600
Total Current Liabilities
37200
Long term Liabilities
Note Payable
40000
Total Liabilities
77200
Owner's Capital
Erickson Capital
5700
Total Liabilities and Owner's Capital
82900
4) Journalize the closing entries
JOURNAL
Date
Account
Debit
Credit
June. 30
Service revenue
48100
Income Summary
48100
(Being revenue account closed)
June. 30
Income Summary
57600
Insurance expense
4400
Salaries expense
33500
Supplies expense
300
Interest expense
8500
Utilities expense
2700
Depreciation expense - Building
8200
(Being Expense accounts closed)
June. 30
Erickson -Capital
9500
Income Summary
9500
(Being Income summary closed)
June. 30
Erickson -Capital
27300
Erickson -Withdrawal
27300
(Being withdrawal account closed)
1) Prepare the company's income statement for the year ended June 30, 2018.
ERICKSON ESTAE APPRAISAL
Income statement
For the year ended June 30, 2018
Service revenue
48100
Operating expenses
Insurance expense
4400
Salaries expense
33500
Supplies expense
300
Interest expense
8500
Utilities expense
2700
Depreciation expense - Building
8200
Total operating expense
57600
Net Income / (loss)
-9500
2) Prepare the company's statement of owner's equity for the year ended June 30, 2018
ERICKSON ESTAE APPRAISAL
Statement of Owner's equity
For the year ended June 30, 2018
Balance - Beginning
42500
Less: Loss for the year
9500
Withdrawals
27300
36800
Balance - Ending
5700
3) Prepare the Company's classified balance sheet at June 30, 2018
ERICKSON ESTAE APPRAISAL
BALANCE SHEET
As on June 30, 2018
ASSETS
Current Assets
Cash
4600
Accounts receivable
5300
Office Supplies
1500
Prepaid Insurance
1700
Total Current Assets
13100
Property, Plant and Equipment
Land
13000
Building
82000
Less: Accumulated depreciation
25200
56800
Total Assets
82900
Liabilities and Owner's Capital
Current Liabilities
Accounts Payable
18700
Interest Payable
8500
Salaries Payable
2400
Unearned revenue
7600
Total Current Liabilities
37200
Long term Liabilities
Note Payable
40000
Total Liabilities
77200
Owner's Capital
Erickson Capital
5700
Total Liabilities and Owner's Capital
82900
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