Completing the accounting cycle The trial balance of Leopard Anvils, Inc., at January 31, 2012, and the data for the month end adjustments follow:
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LEOPARD ANVILS, INC. Trial Balance January 31, 2012 |
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|
|
Balance |
|
|
Account |
Debit |
Credit |
|
Cash |
$ 4,400 |
|
|
Accounts receivable |
14,800 |
|
|
Prepaid rent |
2,300 |
|
|
Supplies |
1,200 |
|
|
Equipment |
30,100 |
|
|
Accumulated depreciation |
|
$ 4,600 |
|
Accounts payable |
|
7,500 |
|
Salary payable |
|
|
|
Unearned service revenue |
|
4,900 |
|
Common stock |
|
5,000 |
|
Retained earnings |
|
20,700 |
|
Dividends |
4,800 |
|
|
Service revenue |
|
17,400 |
|
Salary expense |
2,500 |
|
|
Rent expense |
|
|
|
Depreciation expense |
|
|
|
Supplies expense |
|
|
|
Total |
$60,100 |
$60,100 |
Adjustment data:
- Unearned service revenue still unearned at January 31, $400.
- Prepaid rent still in force at January 31, $1,800.
- Supplies used during the month, $1,100.
- Depreciation for the month, $400.
- Accrued salary expense at January 31, $500.
Requirements
1. Prepare adjusting journal entries.
2. Enter the trial balance on a worksheet and complete the worksheet through the Adjusted Trial Balance of Leopard Anvils for the month ended January 31, 2012.
3. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
4. Using the worksheet data that you prepared, journalize and post the adjusting and closing entries to T accounts. Use dates and show the ending balance of each account.
5. Prepare a post closing trial balance.
6. Calculate the current and debt ratios for the company.