The completed financial statement columns of the worksheet for Korver Company are shown on the next page.
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TAJ COMPANY |
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Worksheet |
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For the Year Ended December 31, 2012 |
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Adjusted |
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Account |
Trial Balance |
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|
No. |
Account Titles |
Dr. |
Cr. |
Dr. |
Cr. |
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|
101 |
Cash |
8,900 |
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|
112 |
Accounts Receivable |
10,800 |
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|
130 |
Prepaid Insurance |
2,800 |
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|
157 |
Equipment |
24,000 |
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|
167 |
Accumulated Depreciation—Equip. |
4,500 |
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|
201 |
Accounts Payable |
9,000 |
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|
212 |
Salaries and Wages Payable |
2,400 |
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|
301 |
Owner’s Capital |
19,500 |
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|
306 |
Owner’s Drawings |
11,000 |
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|
400 |
Service Revenue |
60,000 |
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|
622 |
Maintenance and Repairs Expense |
1,600 |
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|
711 |
Depreciation Expense |
3,100 |
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|
722 |
Insurance Expense |
1,800 |
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|
726 |
Salaries and Wages Expense |
30,000 |
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|
732 |
Utilities Expense |
1,400 |
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Totals |
37,900 |
60,000 |
57,500 |
35,400 |
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Net Income |
22,100 |
22,100 |
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|
60,000 |
60,000 |
57,500 |
57,500 |
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Instructions
(a) Prepare an income statement, an owner’s equity statement, and a classified balance sheet.
(b) Prepare the closing entries. Korver did not make any additional investments during the year.
(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.