The completed financial statement columns of the worksheet for Muddy Company are shown below and on the next page.
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MUDDY COMPANY |
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Worksheet |
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For the Year Ended December 31, 2011 |
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Account |
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No. |
Account Titles |
Dr. |
Cr. |
Dr. |
Cr. |
|
101 |
Cash |
17,900 |
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|
112 |
Accounts Receivable |
10,800 |
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|
130 |
Prepaid Insurance |
2,800 |
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|
157 |
Equipment |
21,000 |
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|
167 |
Accumulated Depreciation |
4,500 |
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|
201 |
Accounts Payable |
9,000 |
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|
212 |
Salaries Payable |
2,400 |
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|
311 |
Common Stock |
20,000 |
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|
320 |
Retained Earnings |
8,500 |
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|
332 |
Dividends |
11000 |
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|
400 |
Service Revenue |
56,000 |
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|
622 |
Repair Expense |
1,600 |
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|
711 |
Depreciation Expense |
2,100 |
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|
722 |
Insurance Expense |
1,800 |
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|
726 |
Salaries Expense |
30,000 |
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|
732 |
Utilities Expense |
1,400 |
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Totals |
36,900 |
56,000 |
63,500 |
44,400 |
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Net Income |
19,100 |
19,100 |
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|
56000 |
56,000 |
63,500 |
63,500 |
Instructions
(a) Prepare an income statement, a retained earnings statement, and a classified balance sheet.
(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.