The following trial balance and additional data are for Roswell Interior Decorators, Inc.:
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ROSWELL INTERIOR DECORATORS, INC |
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Debits |
Credits |
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|
Cash |
$85,400 |
|
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Accounts Receivable |
81,600 |
|
|
Supplies on Hand |
4,000 |
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|
Prepaid Rent |
12,240 |
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Prepaid Advertising |
2,880 |
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Prepaid Insurance |
4,400 |
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Office Equipment |
7,600 |
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Accumulated Depreciation—Office Equipment |
$2,760 |
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Office Furniture |
29,200 |
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Accumulated Depreciation—Office Furniture |
8,280 |
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Accounts Payable |
25,200 |
|
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Notes Payable (due 2011) |
4,000 |
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Capital Stock |
100,000 |
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Retained Earnings, 2010 January 1 |
22,400 |
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Dividends |
45,520 |
|
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Service Revenue |
250,000 |
|
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Salaries Expense |
98,800 |
|
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Utilities Expense |
20,000 |
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Miscellaneous Expense |
24,000 |
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|
$412,640 |
$412,640 |
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Supplies on hand at 2010 December 31, are USD 1,000.
Rent expense for 2010 is USD 10,000.
Advertising expense for 2010 is USD 2,304.
Insurance expense for 2010 is USD 2,400.
Depreciation expense is office equipment, USD 912, and office furniture, USD 3,000.
Accrued interest on notes payable is USD 150.
Accrued salaries are USD 4,200.
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.