Reference no: EM132508910
Mei-ling had a very busy December. At the end of the month, after journalizing and posting theDecember transactions and adjusting entries, Mei-ling prepared the following adjusted trial balance.
Matcha Creations
Adjusted Trial Balance
December 31, 2021
Debit Credit
Cash NT$1,180
Accounts Receivable 875
Supplies 350
Prepaid Insurance 1,210
Equipment 1,200
Accumulated Depreciation-Equipment NT$ 40
Accounts Payable 75
Salaries and Wages Payable 56
Unearned Service Revenue 300
Interest Payable 15
Notes Payable 2,000
Share Capital-Ordinary 800
Dividends 500
Service Revenue 4,515
Salaries and Wages Expense 1,006
Utilities Expense 125
Advertising Expense 165
Supplies Expense 1,025
Depreciation Expense 40
Insurance Expense 110
Interest Expense 15
NT$7,801 NT$7,801
Instructions
Using the information in the adjusted trial balance, do the following.
Question (a) Prepare an income statement and a retained earnings statement for the two months endedDecember 31, 2021, and a classified statement of financial position at December 31, 2021. Thenote payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2023.
Question (b) Mei-ling has decided that her year-end will be December 31. Prepare closing entries as of December 31, 2021.
Question (c) Prepare a post-closing trial balance.