Last Chance Company offers legal consulting advice to prison inmates. Last Chance Company prepared the end of period spreadsheet (work sheet) at the top of the following page at November 30, 2008, the end of the current fiscal year.
Instructions
1. Prepare an income statement for the year ended November 30.
2. Prepare a statement of owner’s equity for the year ended November 30. No additional investments were made during the year.
3. Prepare a balance sheet as of November 30.
4. On the basis of the end of period spreadsheet (work sheet), journalize the closing entries.
5. Prepare a post closing trial balance.
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Last Chance Company End of Period Spreadsheet (Work Sheet) |
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For the Year Ended November 30, 2008 |
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Unadjusted Trial Balance |
Adjustments |
Adjusted Trial Balance |
Income Statement |
Balance Sheet |
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|
Account Title |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
|
Cash |
4,800 |
|
|
|
4,800 |
|
|
|
4,800 |
|
|
Accounts Receivable |
15,750 |
|
(a) 4,200 |
|
19,950 |
|
|
|
19,950 |
|
|
Prepaid Insurance |
2,700 |
|
|
(b) 1,450 |
1,250 |
|
|
|
1,250 |
|
|
Supplies |
2,025 |
|
|
(c) 1,525 |
500 |
|
|
|
500 |
|
|
Land |
75,000 |
|
|
|
75,000 |
|
|
|
75,000 |
|
|
Building |
205,000 |
|
|
|
205,000 |
|
|
|
205,000 |
|
|
Acc. Depr.—Building |
|
76,000 |
|
(d) 2,000 |
|
78,000 |
|
|
|
78,000 |
|
Equipment |
139,000 |
|
|
|
139,000 |
|
|
|
139,000 |
|
|
Acc. Depr.—Equipment |
|
54,450 |
|
(e) 5,200 |
|
59,650 |
|
|
|
59,650 |
|
Accounts Payable |
|
9,750 |
|
|
|
9,750 |
|
|
|
9,750 |
|
Unearned Rent |
|
4,500 |
(g) 2,000 |
|
|
2,500 |
|
|
|
2,500 |
|
Corey Evans, Capital |
|
318,800 |
|
|
|
318,800 |
|
|
|
318,800 |
|
Corey Evans, Drawing |
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
Fees Revenue |
|
286,500 |
|
(a) 4,200 |
|
290,700 |
|
290,700 |
|
|
|
Salaries & Wages Expense |
144,300 |
|
(f) 2,700 |
|
147,000 |
|
147,000 |
|
|
|
|
Advertising Expense |
94,800 |
|
|
|
94,800 |
|
94,800 |
|
|
|
|
Utilities Expense |
27,000 |
|
|
|
27,000 |
|
27,000 |
|
|
|
|
Travel Expense |
18,750 |
|
|
|
18,750 |
|
18,750 |
|
|
|
|
Misc. Expense |
5,875 |
|
|
|
5,875 |
|
5,875 |
|
|
|
|
|
750,000 |
750,000 |
|
|
|
|
|
|
|
|
|
Insurance Expense |
|
|
(b) 1,450 |
|
1,450 |
|
1,450 |
|
|
|
|
Supplies Expense |
|
|
(c) 1,525 |
|
1,525 |
|
1,525 |
|
|
|
|
Depr. Exp.—Building |
|
|
(d) 2,000 |
|
2,000 |
|
2,000 |
|
|
|
|
Depr. Exp.—Equipment |
|
|
(e) 5,200 |
|
5,200 |
|
5,200 |
|
|
|
|
Sal. & Wages Payable |
|
|
|
(f) 2,700 |
|
2,700 |
|
|
|
2,700 |
|
Rent Revenue |
|
|
|
(g) 2,000 |
|
2,000 |
|
2,000 |
|
|
|
|
|
|
19,075 |
19,075 |
764,100 |
764,100 |
303,600 |
292,700 |
460,500 |
471,400 |
|
Net loss |
|
|
|
|
|
|
|
10,900 |
10,900 |
|
|
|
|
|
|
|
|
|
303,600 |
303,600 |
471,400 |
471,400 |