The completed financial statement columns of the worksheet for Carlos Company are shown on the next page.
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CARLOS COMPANY |
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Worksheet |
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For the Year Ended December 31, 2012 |
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Income Statement |
Balance Sheet |
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Account |
Dr. |
Cr. |
Dr. |
Cr. |
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No. |
Account Titles |
6,200 |
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101 |
Cash |
7,500 |
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112 |
Accounts Receivable |
1,800 |
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130 |
Prepaid Insurance |
33,000 |
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157 |
Equipment |
8,600 |
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167 |
Accumulated Depreciation—Equip. |
11,700 |
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201 |
Accounts Payable |
3,000 |
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212 |
Salaries and Wages Payable |
34,000 |
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301 |
Owner’s Capital |
7,200 |
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306 |
Owner’s Drawings |
46,000 |
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400 |
Service Revenue |
4,400 |
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622 |
Maintenance and Repairs Expense |
2,800 |
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711 |
Depreciation Expense |
1,200 |
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722 |
Insurance Expense |
35,200 |
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726 |
Salaries and Wages Expense |
4,000 |
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732 |
Utilities Expense |
47,600 |
46,000 |
55,700 |
57,300 |
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Totals |
1,600 |
1,600 |
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Net Loss |
47,600 |
47,600 |
57,300 |
57,300 |
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Instructions
(a) Prepare an income statement, owner’s equity statement, and a classified balance sheet. B. Carlos made an additional investment in the business of $4,000 during 2012.
(b) Prepare the closing entries.
(c) Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350.
(d) Prepare a post closing trial balance.