The following trial balance and additional data are for Florida Time-Share Property
Management Company:
|
FLORIDA TIME-SHARE PROPERTY MANAGEMENT COMPANY |
||
|
Debits |
Credits |
|
|
Cash |
$424,000 |
|
|
Prepaid Rent |
28,800 |
|
|
Prepaid Insurance |
7,680 |
|
|
Supplies on Hand |
2,400 |
|
|
Office Equipment |
24,000 |
|
|
Accumulated Depreciation—Office Equipment |
$5,760 |
|
|
Automobiles |
64,000 |
|
|
Accumulated Depreciation—Automobiles |
16,000 |
|
|
Accounts Payable |
2,880 |
|
|
Unearned Management Fees |
12,480 |
|
|
Capital Stock |
360,000 |
|
|
Retained Earnings, 2010 January 1 |
120,640 |
|
|
Dividends |
28,000 |
|
|
Commissions Revenue |
260,000 |
|
|
Management Fee Revenue |
19,200 |
|
|
Salaries Expense |
199,840 |
|
|
Advertising Expense |
2,400 |
|
|
Gas and Oil Expense |
14,240 |
|
|
Miscellaneous Expense |
1,600 |
|
|
$796,960 |
$796,960 |
|
Insurance expense for the year, USD 3,840.
Rent expense for the year, USD 19,200.
Depreciation expense: office equipment, USD 2,880; and automobiles, USD 12,800.
Salaries earned but unpaid at December 31, USD 26,640.
Supplies on hand at December 31, USD 1,000.
The unearned management fees were received and recorded on 2010 November 1. The advance payment covered six months” management of an apartment building.
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 an income statement.
c. Prepare a statement of retained earnings.
d. Prepare a classified balance sheet.
e. Prepare adjusting and closing entries.