Reference no: EM13869234

part 1

Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance

The adjusted trial balance of Elias Real Estate Appraisal at June 30, 2014, follows:

ELIAS REAL ESTATE APPRAISAL

Adjusted Trial Balance

june 30,2014

	Balance
Account Title	Debit	Credit
Cash	S          4,900
Accounts Receivable	5,300
Office Supplies	2,400
Prepaid Insurance	1,800
Building	74,400
Accumulated Depreciation-Building		$       26,700
Land	13,600
Accounts Payable		19,500
Interest Payable		8,800
Salaries Payable		2,200
Unearned Revenue		1,300
Notes Payable (long-term)		40,000
Elias, Capital		40,500

Elias, Withdrawals	27,900
Service Revenue		48,200
Insurance Expense	4,500
Salaries Expense	33,300
Supplies Expense	600
Interest Expense	8,800
Utilities Expense	2,200
Depreciation Expense-Building Total	7,500
	S 187,200	S 187,200

Requirements

1. Prepare the company's income statement for the year ended June 30, 2014.

2. Prepare the company's statement of owner's equity for the year ended June 30, 2014. Assume that there were no contributions

made by the owner during the year.

3. Prepare the company's classified balance sheet in report form at June 30, 2014.

4. Journalize the closing entries.

5. Open the T-accounts using the balances from the adjusted trial balance and post the closing entries to the T-accounts.

6. Prepare the company's post-closing trial balance at June 30, 2014.

part 2

Completing the accounting cycle from adjusted trial balance to post-closing trial balance with an optional worksheet
Start from the posted T-accounts and the adjusted trial balance that Davis Consulting prepared for the company at December 31.

Requirements

1. Complete the worksheet at December 31. (optional)

2. Prepare an income statement for the month ended December 31.

3. Prepare a statement of owner's equity for the month ended December 31.

4. Prepare a classified balance sheet (report form) at December 31.

5. Journalize and post the closing entries at December 31. Denote each dosing amount as Cla and each account balance as Balance.

6. Prepare a post-dosing trial balance.

 

Preparing adjusting entries and preparing an adjusted trial balance

This problem continues the Davis Consulting situation from Problem P2-43 of Chapter 2. You will need to use the unadjusted trial

balance and posted T-accounts that you prepared in Problem P2-43. The unadjusted trial balance at December 31, 2014 is duplicated

below:

DAVIS CONSULTING

Unadjusted Trail Balance

December 31,2014

 

Balance

Account Title                            Debit                                  Credit

Cash                                      $ 16,400

Accounts Receivable                   1,200

Office Supplies                                                                     900

Equipment                                 1,800

Furniture                                    4,200

Accounts Payable                                                           $ 4,700

Unearned Revenue                                                              1,400

 

Davis, Capital		18,000
Davis, Withdrawals	1,400
Service Revenue		2,600
Rent Expense	550
Utilities Expense	250
Total	S 26,700	S 26,700

At December 31, the business gathers the following information for the adjusting entries:

a. Accrued service revenue, $550.

b. Earned $700 of the service revenue collected in advance on December 21.

c. Office supplies on hand, $200.

d. Depreciation on equipment, $30; Depreciation on furniture, $70.

e. Accrued $685 expense for administrative assistant's salary.

 

 

Attachment:- p3-45.xlsx