The adjusted trial balance columns of the worksheet for Taj Company, owned by Gabby Taj, are as follows.
|
TAJ COMPANY |
||||
|
Worksheet |
||||
|
For the Year Ended December 31, 2012 |
||||
|
Adjusted |
||||
|
Trial Balance |
||||
|
Account |
||||
|
No. |
Account Titles |
Dr. |
||
|
101 |
Cash |
5,300 |
||
|
112 |
Accounts Receivable |
10,800 |
||
|
126 |
Supplies |
1,500 |
||
|
130 |
Prepaid Insurance |
2,000 |
||
|
151 |
Equipment |
27,000 |
||
|
152 |
Accumulated Depreciation—Equipment |
5,600 |
||
|
200 |
Notes Payable |
15,000 |
||
|
201 |
Accounts Payable |
6,100 |
||
|
212 |
Salaries and Wages Payable |
2,400 |
||
|
230 |
Interest Payable |
600 |
||
|
301 |
Owner’s Capital |
13,000 |
||
|
306 |
Owner’s Drawings |
7,000 |
||
|
400 |
Service Revenue |
61,000 |
||
|
610 |
Advertising Expense |
8,400 |
||
|
631 |
Supplies Expense |
4,000 |
||
|
711 |
Depreciation Expense |
5,600 |
||
|
722 |
Insurance Expense |
3,500 |
||
|
726 |
Salaries and Wages Expense |
28,000 |
||
|
905 |
Interest Expense |
600 |
||
|
Totals |
103,700 |
103,700 |
||
Instructions
(a) Complete the worksheet by extending the balances to the financial statement columns.
(b) Prepare an income statement, owner’s equity statement, and a classified balance sheet. Gabby Taj did not make any additional investments in the business during the year.
(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 No. 350.
(e) Prepare a post closing trial balance.