The completed financial statement columns of the worksheet for Muddy Company are shown below and on the page/p>
|
MUDDY COMPANY |
|||||
|
Income Statement |
Balance Sheet |
||||
|
Account Titles |
|||||
|
101 |
Cash |
17,900 |
|||
|
112 |
Accounts Receivable |
10,800 |
|||
|
130 |
Prepaid Insurance |
2,800 |
|||
|
157 |
Equipment |
21,000 |
|||
|
167 |
Accumulated Depreciation |
4,500 |
|||
|
201 |
Accounts Payable |
9,000 |
|||
|
212 |
Salaries Payable |
2,400 |
|||
|
301 |
Melissa Muddy, Capital |
28,500 |
|||
|
306 |
Melissa Muddy, Drawing |
11,000 |
|||
|
400 |
Service Revenue |
56,000 |
|||
|
622 |
Repair Expense |
1,600 |
|||
|
711 |
Depreciation Expense |
2,100 |
|||
|
722 |
Insurance Expense |
1,800 |
|||
|
726 |
Salaries Expense |
30,000 |
|||
|
732 |
Utilities Expense |
1,400 |
|||
|
Totals |
36,900 |
||||
|
Net Income |
19,100 |
56,000 |
63,500 |
44,400 |
|
|
56,000 |
19,100 |
||||
|
56,000 |
63,500 |
63,500 |
|||
Instructions
(a) Prepare an income statement, an owner’s equity statement, and a classified balance sheet.
(b) Prepare the closing entries. Melissa 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.