Reference no: EM132382138
Question
Below is the unadjusted trial balance of Benny's Time Management Consulting Company.
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Benny's Time Management Consulting Company
Trial Balance
December 31, 2016
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Cash
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$7,950
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Accounts receivable
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Prepaid insurance
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2,400
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Supplies
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3,720
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Equipment
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26,000
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Accumulated depreciation, equipment
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Accounts payable
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$6,200
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Salaries payable
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Unearned consulting fees
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3,000
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Common shares
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10,000
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Retained earnings
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19,600
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Consulting revenue
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3,900
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Depreciation expense, equipment
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Salaries expense
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1,400
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Insurance expense
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Rent expense
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1,000
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Supplies expense
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Utilities expense
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230
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The following year-end adjustments are needed:
A two-year insurance policy was purchased on November 30, 2016.
An end of year inventory of supplies indicated a remaining inventory of $2,670.
Depreciation of equipment is $375.
Earned $250 of previously unearned revenue.
Accrual of salaries for $210.
Accrual of $1,800 revenue owed by a customer and not yet billed.
Instructions:
Prepare the adjusting journal entries. Use standard form for your journal entries. Page 107 in your text provides a good example.
Prepare the following:
Adjusted trial balance.
Income statement for the year 2016 in good form.
Statement of retained earnings in good form.
Classified Statement of Financial Position in good form.
Closing journal entries.
Good form includes a full title, a $ sign on the first number in a column and in the statement total, double underline on the statement total, proper use of columns, and no abbreviations.