(a) Prepare an income statement, a retained earnings statement, and a classified
ID: 2571331 • Letter: #
Question
(a) Prepare an income statement, a retained earnings statement, and a classified statement of financial positions (amount in U.S. dollars).
(b) Prepare the closing entries.
(c) Post the closing entries, and underline and balance the accounts. (Use T-accounts.)
Income summary is account No.350.
(d) Prepare a post-closing trial balance.
ents, No. P4-3A The completed financial statement columns of the worksheet for Hubbs Company are shown below. Hubbs Company Worksheet For the Year Ended December 31, 2014 Statement of Income Financial Account Statement Position Account Titles Dr. Dr. Cr. Dr. Cr. 101 Cash 112 6,200 Accounts Receivable 7,500 130 Prepaid Insurance 1,800 157 Equipment 158 33,000 Accumulated Depreciation-Equip. 201 9,900 Accounts Payable 212 11,700 Salaries and Wages Payable 311 Share Capital-Ordinary 3,000 320 Retained Earnings 20,000 332 Dividends 9,700 400 4,000 Service Revenue 47,000 622 Maintenance and Repairs Expense 4,100 711 Depreciation Expense 3,300 722 Insurance Expense 2,200 726 Salaries and Wages Expense 35,200 732 Utilities Expense 4,000 Totals 48,800 47,000 52,500 Net Loss 54,300 1,800 1,800 48,800 48,800 54,300 54,300Explanation / Answer
Journal Entry Date Name of Account & Description Debit Credit Dec-14 Service Revenue 47000 Retained Earning (b/f.) 1800 Maintainance & Repairs Exp. 4100 Depreciation Exp. 3300 Insurance Exp. 2200 Salaries & Wages 35200 Utility Exp. 4000 (To post closing entries made) Retained Earnings (320) Debit Credit Details Amount Details Amount Loss during the year 1800 Beg. Balance 9700 Ending Balance(b/f.) 7900 9700 9700 Hubbs Company Adjusted- Trial Balance At December 31 , 2014 Acct. Code No. Particulars Debit Credit 101 Cash 6200 112 Accounts Receivables 7500 130 Prepaid Insurance 1800 157 Equipments 33000 158 Acc. Depreciation-Equp. 9900 201 Accounts Payable 11700 212 Salaries & Wages 3000 311 Share Capital-Ordinary 20000 320 Retained Earning 7900 332 Dividends 4000 Total 52500 52500 Income Statement for the Year 2014 Details Amonut Service Revenue 47000 Less: Expenses Maintainance & Repairs Exp. 4100 Depreciation Exp. 3300 Insurance Exp. 2200 Salaries & Wages 35200 Utility Exp. 4000 Net loss During the Year 1800 Balance Sheet Statement for the Year 2014 Assets Amonut Cash 6200 Accounts Receivables 7500 Prepaid Insurance 1800 Equipments 33000 Less-Acct. Dep. 9900 23100 Dividends 4000 Total 42600 Liabilities Accounts Payable 11700 Salaries & Wages 3000 Share Capital-Ordinary 20000 Retained Earning 7900 Total 42600
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