The partial work sheet of Midtown Repair Company at December 31, 2011, follows.
|
|
Adjusted Trial Balance |
Income Statement |
Balance Sheet and Statement of Owner’s Equity |
|||
|
|
Debit |
Credit |
Debit |
Credit |
Debit |
Credit |
|
Cash |
95,600 |
|
|
|
|
|
|
Notes receivable (current) |
50,000 |
|
|
|
|
|
|
Prepaid insurance |
16,000 |
|
|
|
|
|
|
Prepaid rent |
4,000 |
|
|
|
|
|
|
Equipment |
170,000 |
|
|
|
|
|
|
Accumulated depreciation — Equipment |
|
57,000 |
|
|
|
|
|
Accounts payable |
|
52,000 |
|
|
|
|
|
Long term notes payable |
|
63,000 |
|
|
|
|
|
C. Trout, Capital |
|
178,500 |
|
|
|
|
|
C. Trout, Withdrawals |
30,000 |
|
|
|
|
|
|
Repair services revenue |
|
180,800 |
|
|
|
|
|
Interest revenue |
|
7,500 |
|
|
|
|
|
Depreciation expense—Equipment |
28,500 |
|
|
|
|
|
|
Wages expense |
85,000 |
|
|
|
|
|
|
Rent expense |
48,000 |
|
|
|
|
|
|
Insurance expense |
6,000 |
|
|
|
|
|
|
Interest expense |
5,700 |
|
|
|
|
|
|
Totals |
538,800 |
538,800 |
|
|
|
|
Required
1. Complete the work sheet by extending the adjusted trial balance totals to the appropriate financial statement columns.
2. Prepare closing entries for Midtown Repair Company.
3. Set up the Income Summary and the C. Trout, Capital account in the general ledger (in balance column format) and post the closing entries to these accounts.
4. Determine the balance of the C. Trout, Capital account to be reported on the December 31, 2011, balance sheet.
5. Prepare an income statement, statement of owner’s equity, and classified balance sheet (in report form) as of December 31, 2011.