The following trial balance and additional data are for Sure Sale Reality Company
|
SURE SALE REALTY COMPANY |
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|
Debits |
Credits |
|
|
Cash |
$62,800 |
|
|
Accounts Receivable |
117,120 |
|
|
Prepaid Rent |
46,080 |
|
|
Equipment |
173,760 |
|
|
Accumulated Depreciation—Equipment |
$21,120 |
|
|
Accounts Payable |
62,400 |
|
|
Capital Stock |
96,000 |
|
|
Retained Earnings, 2010 January 1 |
49,920 |
|
|
Dividends |
46,080 |
|
|
Commissions Revenue |
653,200 |
|
|
Salaries Expense |
321,600 |
|
|
Travel Expense |
96,480 |
|
|
Miscellaneous Expense |
18,720 |
|
|
$882,640 |
$882,640 |
|
The prepaid rent is for the period 2010 July 1, to 2011 June 30.
The equipment has an expected life of 10 years with no salvage value. Accrued salaries are USD 11,520.
Travel expenses accrued but unreimbursed to sales staff at December 31 were USD 17,280
a. Prepare a 12-column work sheet for the year ended 2010 December 31. You need not include account numbers or explanations of adjustments.
b. Prepare adjusting journal entries.
c. Prepare closing journal entries.