The adjusted trial balance columns of the worksheet for Porter Company are as follows.
|
PORTER COMPANY Worksheet For the Year Ended December 31, 2011 |
|||
|
Account |
|||
|
No. |
Account Titles |
Dr. |
Cr. |
|
101 |
Cash |
4,400 |
|
|
112 |
Accounts Receivable |
44,000 |
|
|
126 |
Supplies |
||
|
130 |
Prepaid Insurance |
||
|
151 |
Office Equipment |
||
|
152 |
Accumulated Depreciation—Office Equipment |
20,000 |
|
|
200 |
Notes Payable |
20,000 |
|
|
201 |
Accounts Payable |
8,000 |
|
|
212 |
Salaries Payable |
2,600 |
|
|
230 |
Interest Payable |
1,000 |
|
|
311 |
Common Stock |
30,000 |
|
|
320 |
Retained Earnings |
6,000 |
|
|
332 |
Dividends |
12,000 |
|
|
400 |
Service Revenue |
77,800 |
|
|
610 |
Advertising Expense |
12,000 |
|
|
631 |
Supplies Expense |
3,700 |
|
|
711 |
Depreciation Expense |
8,000 |
|
|
722 |
Insurance Expense |
4,000 |
|
|
726 |
Salaries Expense |
39,000 |
|
|
905 |
Interest Expense |
1,000 |
|
|
Totals |
165,400 |
||
Instructions
(a) Complete the worksheet by extending the balances to the financial statement columns.
(b) Prepare an income statement, a retained earnings statement, and a classified balance sheet. $10,000 of the notes payable become due in 2012.
(c) Prepare the closing entries. Use J14 for the journal page.
(d) Post the closing entries. Use the three column form of account. Income Summary is account No. 350.
(e) Prepare a post closing trial balance.